UFlex to invest ₹317 crore in new recycling plants in Noida after USFDA approval

Flexible packaging and solutions company UFlex Ltd. announced on Wednesday, March 12, that it has received approval from the United States Food and Drug Administration (USFDA) for its recycling process. This approval allows UFlex to use recycled polyethylene (rPE) in food packaging.

UFlex's recycling process is classified as super-clean, capable of de-inking post-consumer recycled (PCR) materials by over 95%, making it one of the most advanced methods globally. The certification adheres to international standards and contributes to the global shift toward a circular economy, the company informed stock exchanges in a filing.

To further bolster its recycling capabilities, UFlex is investing ₹317 crore in advanced recycling technologies. The company will set up two new recycling plants at its Noida facility, with a combined annual capacity to process 39,600 metric tonnes of plastic waste. These plants will focus on producing recycled polyethylene (rPE) and recycled polyethylene terephthalate (rPET) materials, essential for sustainable food packaging.

"We are proud to announce this significant investment in strengthening our recycling infrastructure. Our enhanced operations will empower brand owners to meet their EPR commitments and set a global benchmark for sustainable packaging," said Jeevaraj Gopal Pillai, Whole Time Director, Director of Sustainability, and President of Flexible Packaging and New Product Development at UFlex.

In addition to the USFDA approval for recycled polyethylene, UFlex has applied for certification to recycle polypropylene (PP). This will make the company the first multinational firm in the flexible packaging industry with the technology and capacity to recycle all three major materials—PET, PE, and PP—for use in food packaging.

Although there are no specific guidelines yet for the use of recycled polyethylene (rPE) content in food packaging in India, UFlex is working with industry players and government bodies like FSSAI and BIS to help develop the necessary guidelines for safe and sustainable use.

Currently, UFlex operates recycling plants in India, Poland, Egypt, and Mexico, processing post-consumer multi-layered plastic (MLP), multi-layer aseptic packaging (MLAP), and polyethylene terephthalate (PET) waste.

Shares of UFlex were trading 0.36% lower at ₹462.8 apiece on the BSE at 12:31 pm.