Nigerian Breweries Plans rPET Production Facility in Ogun with Indorama and Genesis
Nigerian Breweries has announced plans to establish a food-grade recycled polyethylene terephthalate (rPET) production facility in Ogun State as part of a strategic partnership designed to strengthen sustainable packaging and support the country’s growing recycling industry.
The company disclosed the plan in a notice to Nigerian Exchange Limited (NGX) and the investing public, stating that the project will be developed in collaboration with Indorama Ventures Public Company Limited and Genesis Energy Group.
Under the agreement, Nigerian Breweries will hold a 29 percent minority stake in the venture, which will operate through a special purpose vehicle named Indorama Ventures Recycling Solutions Limited.
Indorama Ventures, the majority partner, will lead the funding, development, and operation of the facility. The plant will produce food-grade rPET for Nigerian Breweries and other manufacturing companies, supporting national plastic waste management efforts.
Nigerian Breweries clarified that it will remain a minority investor and will not be involved in the control or day-to-day management of the venture.
According to the company, the investment forms part of its broader sustainability strategy and aims to secure access to recycled packaging materials in the future.
“The partnership secures a reliable future supply of rPET for Nigerian Breweries’ operations, in line with the roadmap for mandatory usage under national policy,” the company said.
Food-grade recycled polyethylene terephthalate is widely used in beverage packaging. Produced from purified terephthalic acid and ethylene glycol, the thermoplastic polymer has strong molecular chains that provide durability, transparency, and resistance to water and chemicals. These characteristics make rPET suitable for food and beverage packaging because the material does not leach into liquids stored inside it.
The initiative comes as the Federal Government increases enforcement of plastic waste regulations under the Extended Producer Responsibility (EPR) framework.
Industry analysts say the move highlights the growing regulatory and market pressure on manufacturers in Nigeria to adopt circular economy practices.
Environmental policy analyst Chinwe Okoli noted that investments in recycling infrastructure will become increasingly important as EPR rules are implemented.
“With mandatory plastic recovery policies now in place, companies that rely heavily on plastic packaging must secure reliable recycling streams. Establishing local rPET production will help reduce dependence on imported recycled materials,” she said.
Manufacturing sector analyst Bismarck Rewane added that partnerships with global recycling firms could accelerate technology transfer and improve the country’s waste management ecosystem.
“Large manufacturers are beginning to integrate sustainability into their supply chains not just for regulatory compliance but also for long-term cost efficiency,” he said.
Meanwhile, Nigerian Breweries recently reported a strong financial recovery for the 2025 financial year. The company posted a pretax profit of ₦161 billion after recording a loss of ₦182.9 billion in the previous year.
Revenue also rose significantly, with sales reaching ₦1.4 trillion, marking a 35.32 percent increase driven by strong demand across its beverage portfolio.