Polysmart Invests $60 Million in Nigeria's Food-Grade rPET Recycling Capacity Expansion

Photo Credit: Polysmart 

Polysmart Packaging Limited commissioned Phase 1 of its expanded food-grade recycled polyethylene terephthalate (rPET) facility in Mowe, Ogun State, on October 29, 2026. Backed by a $60 million investment, the project represents a significant expansion of Nigeria's domestic plastic recycling infrastructure and aims to strengthen the supply of locally produced recycled materials for packaging manufacturers.

Designed to process up to 100,000 tonnes of post-consumer PET bottles annually, the facility is expected to produce 60,000 tonnes of food-grade rPET and 20,000 tonnes of other recycled plastics at full capacity. According to the company, this processing volume is equivalent to approximately 6.5 billion plastic bottles each year. The investment is intended to increase domestic bottle-to-bottle recycling capacity while providing manufacturers with an alternative source of recycled raw materials.

Securing a consistent supply of post-consumer plastic is a central part of the project's operating strategy. Polysmart currently operates 25 aggregation centres across eight Nigerian states and plans to establish another 250 centres across all 36 states within two years. The expanded collection network is expected to improve access to discarded PET bottles and strengthen connections between waste collectors, aggregators, transporters and industrial recycling operations.

The project also addresses Nigeria's reliance on imported virgin PET resin. The company estimates that domestic consumption of virgin PET reaches approximately 600,000 tonnes annually, creating opportunities for locally manufactured recycled materials to replace part of the imported supply. Polysmart projects that the facility could generate annual foreign exchange savings of approximately $72 million through reduced virgin resin imports, although the actual impact will depend on production levels, market demand and the extent to which recycled materials replace virgin resin.

Technology supplied by European companies EREMA, SOREMA and TOMRA forms part of the facility's processing and sorting infrastructure. Its food-grade recycling processes are designed to meet applicable food-contact requirements associated with the U.S. Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA). This capability is particularly relevant to bottle-to-bottle applications, where recycled PET must meet stringent quality and safety requirements before being reused in packaging intended for food contact.

Beyond material recovery, the expansion is expected to create approximately 1,000 direct jobs and more than 50,000 indirect employment opportunities across the recycling value chain. These opportunities are expected to extend to bottle collection, aggregation, transportation and processing. Greater demand for recovered PET could also provide additional income opportunities for informal waste collectors and local recycling businesses.

The project comes as Nigeria continues to strengthen its approach to plastic waste management and Extended Producer Responsibility (EPR). By increasing the availability of domestically processed food-grade rPET, the facility could help packaging manufacturers incorporate recycled content into their products while supporting compliance with evolving waste management requirements. Its broader environmental contribution will depend on effective collection systems, reliable feedstock supply and sustained participation from businesses and communities.

Source: Polysmart Packaging Limited 

SUNSHINE Spotlight: Polysmart's $60 million investment highlights the potential for domestic recycling infrastructure to support both resource recovery and manufacturing supply chains in emerging markets. Its longer-term impact will depend not only on the facility's ability to reach its designed capacity, but also on the successful expansion of collection networks, consistent feedstock availability and growing demand for food-grade recycled PET across the packaging industry.