PreZero US Acquires Roplast Industries

Southern California recycling company PreZero US Inc. acquired Roplast Industries Inc., a sustainable PE film and bag manufacturer based in Oroville, Calif.

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The Roplast acquisition is the next step in PreZero’s ambitious growth strategy. In 2020, PreZero announced investments totaling over $100 million in plastics recycling facilities on both coasts. These facilities are now operational and can be found in Jurupa Valley, Calif. and Westminster, S.C. These state-of-the-art facilities are processing film and mixed rigid plastic bales into LDPE, PP, and HDPE resins. Total planned processing capacity is estimated over 160 million pounds per year. The company entered the U.S. market in 2018 and is an arm of PreZero International which is also a major player in the European recycling and disposal market.

Founded in 1989, Roplast is a manufacturer of polyethylene film and bags. Over three decades, Roplast has shown a commitment to exploring sustainable solutions for these products in all its endeavors. PreZero and Roplast come together just as California’s SB270 legislation will be requiring more recycled content in bags and film. Current processing capacity of Roplast is 30 million pounds per year. The film and bags are sold across the US in a variety of markets.

PreZero has the means to supply resins that can serve as the PCR feedstock for the Roplast production line. These efforts point to the primary business goal of PreZero US which is vertically integrating to deliver closed loop solutions that support the circular economy.

“This is an exciting move for our company. PreZero is here to change the recycling industry in the US and this is just the next step in that progression. By bringing Roplast into our PreZero family, we add the key component of manufacturing which guarantees a viable end market for the resins we are already producing. I’m most excited for our customers, as this extends our capabilities to close the loop with them. The film and bags they buy from Roplast can be collected and processed at the material end of life by PreZero’s state-of-the-art facilities. Then we can supply the same quality products back to our original customers. Thus, creating a true circular economy. On behalf of the entire PreZero team, we are excited to begin working with our new colleagues from Roplast,” stated  Hernan de la Vega, CEO of PreZero US.

“We have long believed that the future of our business is in reusable bags, recycling post- consumer scrap and reuse. PreZero brings the resources and network to make this prospect a reality on a large scale. This is the right company to buy Roplast. We are confident that Roplast/PreZero will be an excellent employer and a great asset for Oroville in future,” said Roplast Co-Founder, Robert Bateman.

Within 24 months of the acquisition, PreZero has the goal of supplying up to 15 million pounds of LDPE per year in the form of PCR content for film and bags. By bringing sourcing raw material, pre-production, processing, and finally manufacturing under one roof, the company is continuing its work to develop the domestic infrastructure for recycling.

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