MANTUA, Italy, June 19 (Reuters) - Versalis, the chemical company of Italian energy group Eni, on Thursday unveiled a demonstration plant based on its new proprietary technology for the chemical recycling of mixed plastic waste.
The technology, dubbed 'Hoop', makes it possible to convert mixed plastic waste into a material that can be used to produce new plastic materials suitable for all applications, including food contact packaging and pharmaceutical packaging.
The move is part of a strategy of the state-controlled group to overhaul its loss-making chemical business.
A build-up of production capacity in China and high energy and raw material costs have put European petrochemical producers under unprecedented pressure, prompting groups including Eni, TotalEnergies and BP to shut down old plants or put assets up for sale.
Eni said last year it would invest 2 billion euros ($2.3 billion) by 2029 to turn around its chemicals business, which accumulated 3 billion euros in losses in the last five years.
The revamp hinges on starting new activities including plastic recycling, bio-refining and energy storage and shutting down several primary petrochemicals plants including steam crackers.
Eni plans in the next few years to set up a new plant based on the 'Hoop' technology in Priolo, Sicily, where it will shut a steam cracker by the end of this year.
"A final investment decision on the new recycling plant in Priolo could come next year," Versalis Chief Executive Officer Adriano Alfani said at an event to inaugurate the demo plant in Mantova.
Versalis' new technology was developed through a joint project with Italian engineering firm S.R.S. (Servizi di Ricerche e Sviluppo), leading to a system that achieves high material recovery yields and offers flexibility in terms of input materials.
($1 = 0.8716 euros)
Reporting by Francesca Landini Editing by Mark Potter
Source: Reuters