Canglobe plans PET recycling plant
Edmonton— Canglobe International
Inc., chairman, Donald Getty announced the company has acquired
the manufacturing and marketing rights to produce PET flake, pellets,
and sheeting from post consumer PET bottles, from Grant Bennett
and Donald Sampson, president and CEO of Canglobe International,
Using unique processing systems
designed by Bennett and Sampson, the company can proceed to acquire
requisite equipment and commence operations within one month of
The initial costs to produce
a PET pellet producing facility from recycled PET is estimated
at $2.0 million and the PET recycling facility would be in cash
flow within three months of funding. Payback is estimated at 6-8
months from start up of operations.
The cost to build a 40 million
pound per year recycled PET production facility is approximately
$10 million. Construction and startup is approximately six months
and payback is estimated at 8-12 months after commencement of
Given that demand for PET pellets,
flake and sheeting has been growing at an estimated 20% per year
for the last five years, and that this growth is expected to continue
as more and more products are being packaged using PET; there
are acute shortages of PET pellets, flake and sheeting developing
in the market.
Bennett has indicated that not
only does he have standing orders for all production from the
PET recycling facility; he has also secured a continuous supply
of post consumer bottles to feed the facility from California
and other western U.S. states.
The PET recycling facility is
to be operated in the Las Vegas area of Nevada. Under the terms
of the acquisition, Bennett and Sampson have the right to earn
3.1 million restricted shares of Canglobe International stock,
most of this being earned upon the completion of the $10 million
PET recycling facility.
Financing for the acquisition
is currently being raised by way of the private placement of convertible
debentures to accredited investors. The convertible debentures
have an annual interest rate of 8% and are convertible to common
shares after 12 months at a base price of the greater of market
or $0.50 per share.
Bennett is joining Canglobe to
lead this project. Bennett has over 30 years of experience encompassing
all aspects of polymer raw material, plastic conversion methods.