Mechanical Recycling

Mechanical Recycling (rPET)

Opportunity Overview & Value Propositions

Mechanical Plastic Recycling Facility for PET involves the collection and sorting of waste, which is later shredded, dried, and extruded into recycled pellets

Value Propositions:

Short Term:

  • Capture 22kt/yr of feedstock
  • Facility has capacity to produce 14kt/yr of rPET, assuming an efficiency of 65% 2
  • Potential revenue of ~$26M p/A @ 100% capacity
  • Be the first producer of recycled PET locally

Medium-Term: (~3years):

  • ~45% of unutilized Feedstock unlocked
  • Laws limiting exportation of plastic waste introduced
  • Regulation introduced which drives demand
  • Additional capacity available for recycling

Long-Term: (+5years):

  • ~65% of unutilized Feedstock unlocked
  • Sourcing and sorting infrastructure of local waste will increase feedstock availability

Explore The Opportunity

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101 Mn

Investment size (AED) for a typical facility


Plant capacity per year


Projected IRR

58.4 Mn

Projected NPV (AED)

Value Chain

Value Chain Analysis

  • High
    localization in UAE
  • Limited
    localization in UAE
  • Mid
    localization in UAE
Waste Collection and Sorting
Cleaning and Drying
End Users

Market Size Bar Chart

Global and UAE market size
2022-2032 (Bn AED)

Mechanical Recycling Chart

Success Stories

HOTPACK Success Story

"Hotpack Packaging Industries, established in 1995, has become the largest manufacturer of disposable food packaging products in the region and credits this impressive growth to the technological and manufacturing space across the UAE, excellent infrastructure, low tax, global connectivity, and the support from the UAE Government. Starting with a workforce of three, they now have 12 manufacturing divisions, 3500+ products, 3300+ employees, 42 retail outlets, and 27 branches worldwide. Their 3 million square foot manufacturing area, with state-of-the-art equipment and 100,000+ pallet locations serving logistics and warehousing, supports exports to over 100+ countries. In addition, all its factories have achieved the prestigious double Grade A (AA) certification from the International Gold standard, BRCGS".

Rubber and plastics Sector Stories
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