PureCycle Technologies, Inc. (NASDAQ: PCT) is a producer of ultra-purified recycled polypropylene, through its wholly-owned subsidiary PureCycle Technologies, LLC. The company holds a global license for the only patented-protected solvent-based purification recycling technology, which is designed to recycle polypropylene plastic (No. 5 plastic) into a renewable resource. Shares of the specialized recycling and pollution control company are rallying 38% through early trading on Thursday, March 16, 2023. Over the past three months, PureCycle Technologies has seen average daily volume of 1.55 million shares. However, volume of 10.83 million shares or dollar volume of around $70.5 million, has already exchanged hands through early trading.
Shares of PureCycle Technologies are gaining after the company announced it has entered into a strategic distribution agreement with Formerra, a leader in engineered materials distribution. Formerra will become PureCycle’s primary authorized distributor of its ultra-pure recycled (UPR) polypropylene resin product, PureFive.
PureFive is made using a patent-protected process, which is designed to recycle No. 5 plastic into a renewable resource. PureCycle Technologies’ purification technology is capable of removing colors, odors, and other impurities from the plastic waste. The technology seeks to create a circular economy for ultra-pure recycled plastic.
PureCycle’s resin product is a like-virgin material, which is easily colored, 100% recyclable, and also uses 79% less energy than virgin resin. The recycling process also is estimated to release 35% less carbon emissions than new polypropylene manufacturing.
PureCycle CEO Dustin Olson commented: “This is another key step in executing our global growth strategy. Formerra’s commitment to innovative approaches to complex end-market applications and strong dedication to sustainable solution-building is a perfect fit for our company. Our first purification line in Ironton, scheduled to be completed shortly, and the subsequent two lines planned in Augusta, are designed to produce more than 300 million pounds of UPR resin. We will rely on Formerra as a trusted distribution partner to help us reach new markets.”
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