PureCycle partners with RM TOHCELLO on recycled BOPP film

PureCycle partners with RM TOHCELLO on recycled BOPP film

U.S. futures hold on to gains after data shows producer prices cooled in June ORLANDO, Fla. - PureCycle Technologies, Inc. (NASDAQ:PCT) announced today a strategic partnership with RM TOHCELLO Co., Ltd. and Mitsui & Co., Ltd. to develop biaxially oriented polypropylene film with recycled content. The collaboration, which began in the first quarter of 2023, has completed pilot-scale production runs using PureCycle’s PureFive resin. The partners plan to introduce the materials to converters and brand owners in Japan, with a formal commercial agreement anticipated in 2027 and shipments following compliance with import regulations, according to a press release statement.

BOPP film is used in food packaging, labels and consumer goods applications that require optical clarity and consistency. The material has historically been difficult to produce with recycled content due to high purity requirements that mechanically recycled polypropylene has not met. RM TOHCELLO began testing initial samples of PureFive resin provided by PureCycle and Mitsui in the first quarter of 2023.

The early-stage trials produced results that led to the pilot-scale production runs. "Flexible films are one of the fastest growing segments in packaging and we’ve been waiting for a solution like PureCycle’s to allow us to start using recycled content in BOPP film and PP sealant film," said Masaru Furukawa, RM TOHCELLO Executive Officer. PureCycle’s dissolution recycling technology removes additives, colors, odors and impurities from post-consumer polypropylene waste.

The company holds a global license for the technology, which was developed by The Procter & Gamble Company. RM TOHCELLO produces packaging films and molded sheets for food, beverages and other products globally. Mitsui is a trading and investment company with operations in more than 60 countries.

The stock has faced headwinds recently, declining 39% over the past six months. According to InvestingPro analysis, which offers Fair Value estimates and 10 additional ProTips for PCT, analysts anticipate continued sales growth though profitability remains elusive. Investors seeking deeper insights can access PCT’s comprehensive Pro Research Report, one of 1,400+ available for US equities.

In other recent news, PureCycle Technologies Inc. has completed public offerings totaling $287.5 million in convertible senior notes and 19,854,000 shares of common stock. The company issued 4.75% convertible senior notes due 2032, which included $37.5 million in notes sold through the full exercise of underwriters’ over-allotment option. The stock offering included 2,283,800 additional shares issued through the full exercise of underwriters’ option to purchase additional shares.

Morgan Stanley served as the sole bookrunner for both offerings. Additionally, PureCycle has announced the production of a living hinge cap using up to 100% PureFive resin, in collaboration with StackTeck Systems Ltd. These caps passed various customer-related tests, including the living hinge fatigue test.

Furthermore, PureCycle has received ISO 9001:2015 certification from DQS Global for its Quality Management System at the Ironton, Ohio dissolution recycling facility. This certification confirms the company’s implementation of documented processes and a framework for continuous improvement.