Closed-Loop Recycling

Circle up! Let’s talk about closed loop recycling, what it is, and how Placon lives by this ideal every day.

Closed-loop recycling is certainly a buzzword, but what does it mean, how can we create these systems, and what are the positive impacts on the environment? In this post, we’ll take a look at what a closed loop recycling program is, how Placon supports this process, and the environmental impact we can have when we truly invest in sustainable systems.

What is Closed-Loop Recycling?

Closed-loop recycling is a way to keep older material in use through recycling and reusing raw material. For example, a single-use plastic soda bottle could end up in a landfill, but it could also be recycled at a plant, processed and reground into plastic flake, extruded, and remade into a new bottle. This creates a more circular flow of recycling and keeps old material out of landfills and into new products. Closed loops help consumers and producers create balanced, sustainable lifecycles where material can be repurposed and reused.

Closed-loop recycling may involve consumer help in organizing or collecting materials for recycling, or it can be an internal process where scrap or waste material is repurposed for new products. Creating both is key to sustainability. Having both an internal and external sustainable system in place is key for the longevity and reusability of products to better reduce environmental impact.

What are the positive impacts of closed-loop recycling systems?

There are a variety of positive impacts of closed-loop systems, like reducing the amount of raw virgin material needed for production. Using less new material reduces extraction costs and energy demands, and can help preserve nonrenewable resources and limit the strain on the environment.

Closed-loop systems can also be a cost saver for producers. Having a way to reuse material on-site can be one way to further reduce environmental impacts. This limits transportation of raw materials and energy usage, and creates one central location for production and manufacturing needs.

Another positive is increased awareness by consumers to opt for recyclable, reusable, or repurposed materials. Customers look for recycling codes, sustainability features like reused paper or glass, and items with post-consumer recycled materials for a lesser environmental impact.

Creating a closed system helps in all stages of the manufacturing process, and helps alleviate transportation costs, energy usage, and preserves the environment by reducing waste and demand for new raw materials.

How can we create closed loop systems?

Creating a closed loop system starts with your product. What are the ways to recycle or reuse your material? In our industry, PET plastic is the gold standard for its ease of use, recyclability, and durability even after being reused many times. We started by looking at our PET material, determining recycling best practices, and investing in the equipment, processes, and materials needed for a circular, sustainable manufacturing process. Take a look at your material, figure out the process needed to create new product from old material, consider what machinery or equipment is needed, and develop policies and procedures.

How does Placon create a closed-loop system?

Sustainability has been at the forefront of our mission since the company was founded in 1966. We created a truly circular closed-loop system in 2011 with the opening of our recycling facility, EcoStar. We brought in old material, like used plastic bottles made from post-consumer recycled materials, processed and reground them into flake, and extruded them into fresh sheets of RPET plastic for use in new products.

We believe in a closed-loop system, and the benefits that it brings to consumers and to our environment. Creating packaging that is easy to recycle has been our mission since the early 1970s, and it continues to this day. We’re proud of the systems we have in place to protect our environment and continue to find new green initiatives for the future. You can read more in our Sustainability Guide, or find more about our EcoStar plant and material here.

ABOUT PLACON
Since 1966, Placon has been a leading designer and manufacturer of innovative and sustainable plastic packaging for medical, food, and consumer goods markets. Placon has manufacturing operations in Madison, WI; West Springfield, MA; Elkhart, IN; and Plymouth, MN, and is currently ranked in the Top 20 in Plastics News 2025 Thermoformers Rankings. Placon delivers packaging breakthroughs that inspire better engagement between people and products.