What does a giant oil and gas company have to do with food and beverage? Apparently, there are byproducts in petroluem that is used extensively in the plastic and packaging business. Dialog Group which is mostly involved in the upstream business of the oil and sector is looking on the use PET or polyethylene terephtalate in a more sustainable manner in the packaging industry.
In order to achieve this the group has entered into a Memorandum of Understanding with Diyou Fibre to use recycled PET pellets for the food packaging industry. This will be Dialogs first investment into the downstream petrochemical industry, together they will be looking to have production facility that will produce food grade recycled PET pellets for sale for the industry.
Diyou Fibre is an established recycling and manufacturing company in Malaysia, based in Nilai, Negeri Sembilan. The founders have more than 30 years of experience in the post-consumer plastics recycling industry and is among the largest mechanical recycling manufacturer, where post-consumer plastics are recycled and made into materials used for polyester staple fibre, food and beverage packaging, industrial packing, construction, automotive and other raw materials in various industries.
The proposed venture will serve to meet the increasing demand for food grade recycled PET materials resulting from the drive by the international community to support a circular economy.
Dialog views the venture as a positive impact towards the Governments call for sustainability, the recycling of plastic wastes into feedstocks for the production of packaging materials for the food and beverage industry bodes well for the circular economy road map. This is also part of the company’s ESG agenda apart from its earlier investment in a startup company which has developed proprietary technology to capture carbon and utilise it in the production of fuels and chemicals that can reduce greenhouse gas emissions.