Californian water and soft drinks producer Niagara Bottling has acquired an idle recycling and packaging facility in Vernon, California.
The company bought the 305,000-plus-square-foot site in Los Angeles County from rPlanet Earth Los Angeles Holdings and rPlanet Earth Los Angeles.
Financial terms of the deal, which also includes the packaging brand rPlanet Earth, were not disclosed.
In a statement yesterday (18 May), Niagara said acquiring rPlanet Earth's site "expands its beverage manufacturing operations and pursues vertical integration for its business".
It also said that through the acquisition it will “enhance its recycling capabilities”, as it will be able to sort, clean and reprocess PET into recycled (rPET) flakes and pellets. The recycled material will be used to manufacture packaging for Niagara's products.
The move will also help the company move towards “more circularity”, and reduce its reliance on virgin plastics, it said.
Niagara Bottling president Rali Sanderson said: “We're proud to bring this facility back to life and become one of the few companies in the country with a true bottle-to-bottle process.
“As part of this work, we're investing in new equipment so we can turn recyclable plastic materials into new bottles, right here in California.
“This restores a vital recycling operation for the community, making sure even more plastic containers are recycled and get a second life.”
The Vernon plant has been offline since September and the Diamon Bar, California-based group plans to restore the facility in phases.
The site can process “complicated” B-bales from curbside mixed recycling bins. Niagara said this capability is “critical” as PET surpassed aluminium was the most recycled material in California last year.
It is expected to produce 45 million pounds (Mlbs) of rPET for use in Niagara's products.
The company plans to employ around 60 people at the site, including former rPlanet Earth staff.
Niagara Bottling, in operation since 1963, runs bottling sites across the US, Mexico, Australia and the UK. It produces bottled water and a range of other beverages, including flavoured water, teas, sports drinks, ready-to-drink coffee and protein drinks.
