Polyco injects US$0.11M to boost South Africa’s polystyrene recycling capacity

SOUTH AFRICA — Producer responsibility organization Polyco has invested R1.89 million (US$0.11 million) in New Earth Recycling, one of the country’s few dedicated processors of post-consumer and agricultural polystyrene (PS).

The move strengthens domestic recycling capacity for a material that is technically recyclable yet often economically unattractive for collection and processing.

This marks Polyco’s third consecutive year of financial backing for the Cape Town-based recycler, underscoring the urgent need to develop infrastructure for low-value plastic streams that struggle to draw commercial investment.

Founded in 2013, New Earth Recycling has grown from a small community-focused initiative into a fully equipped PS recycling operation, producing consistently high-quality, contamination-free recycled material for local manufacturers.

Polystyrene recycling continues to lag behind other plastic categories due to several structural challenges.

Virgin PS remains relatively cheap, end markets are limited, and expanded polystyrene contains up to 98% air, making it expensive to transport and difficult for municipalities and small collectors to manage without specialized densification equipment.

Despite these hurdles, New Earth has demonstrated that even difficult, highly contaminated PS waste can be recovered at scale and kept within circular supply chains.

Polyco’s funding over the past two years has enabled the recycler to modernize operations, automate key processes, and more than double its capacity for post-consumer PS.

The latest capital injection will finance a new bale opener, conveyor-driven sorting line, and three hot-melt densifiers, equipment expected to significantly increase feedstock throughput, improve densification, and unlock the processing of harder-to-handle grades.

According to Polyco, close to 99% of New Earth’s output is used in domestic applications that remain recyclable, ensuring material stays in circulation and reducing waste sent to landfill.

“New Earth Recycling has shown the kind of resilience and innovation that South Africa needs,” said Polyco project manager Adriaan van Wyk.

“Our funding since 2023 has been a real step change for the regional polystyrene ecosystem… Supporting them again in 2025 is an investment in capacity, in jobs, and in long-term circular growth.”

The investment aligns with broader developments in South Africa’s plastics sector, where producer responsibility schemes are accelerating infrastructure upgrades.

In 2024, PETCO and the Polystyrene Association of South Africa expanded training and equipment support for waste collectors, while several municipalities piloted densification projects to ease the handling of lightweight plastics.

Looking ahead, New Earth Recycling plans to expand its collection network, enhance operational efficiency, and grow local end markets over the next three to five years, positioning the company as a key player in the country’s circular plastics transition.

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