Novarise Renewable Resources International Ltd. recently filed for an Initial Public Offering on the Australian Securities Exchange. The company, a manufacturer of recycled polypropylene-based products, hopes to raise A$ $25-$32 million (US$22-28 million) through the offering.
Most of the money raised through the IPO will be used to expand the company’s production facilities in the Fujian Province in China.
If everything goes according to plan, the company hopes to list on the Australian Stock Exchange on March 18, 2010.
Novarise recycles plastic scrap from materials such as used CD cases, agricultural twine, safety nets, fishing nets, polypropylene yarn and straps. The company recycles the scrap material into a range of products, including pellets, filament yarn, consumer webbing products and agricultural twine.
In 2008, Novarise’s facilities had an annual capacity of 23,000 metric tons of polypropylene filament yard, which the company claims accounted for more than 10 percent of the PP filament yarn capacity in China.
Qingyue Su, Novarise’s chairman and managing director for Novarise, says the company is the only company of its type in China currently recycling PP waste materials to produce fiber-grade recycled PP pellets. He estimates that the cost of processing PP waste materials into recycled fibre-grade PP pellets is estimated to be 20 percent less than the cost of using virgin (non-recycled) PP pellets.