IFC Invests in America Embalagens to boost circular economy solutions in Brazil

São Paulo, October 29, 2025  – IFC, a member of the World Bank Group, has made a strategic investment in America Embalagens, a major Brazilian manufacturer of rigid plastic packaging, to support the expansion and modernization of the company’s largest plant, located in the state of São Paulo.

Brazil leads plastic production in Latin America and the Caribbean, a region responsible for 15.7 million tons annually—equivalent to 3.8% of global production. In 2024, more than 20% of the waste generated from the 8,000 tons of plastic consumed in the country was reused as raw material. This result represents an 8% increase compared to the previous year. The expectation is that the share of recycled material will continue to grow, also boosting the production of post-consumer resin (PCR).[1]

America Embalagens is expanding its largest plant in São Paulo state with two new lines for the production of plastic tubes, totaling a capacity of 200 million units per year. The lines are capable of using up to 80% recycled content, reducing dependence on virgin resins. The project will adopt cutting-edge technology, with additional environmental benefits: near-zero waste production, the possibility of combining technologies to protect the final product with fully recyclable materials, and the use of monomaterial plastic packaging, as well as the production of lighter packaging. The America Embalagens project includes the unprecedented integration of advanced processes in a single, streamlined production system.

IFC’s investment, of up to €65 million, includes a €32.5 million loan from its own resources and €32.5 million mobilized from private investors. The financing will function as an incentive-based loan, with interest rate reductions if America Embalagens achieves at least 20% use of recycled resins during the loan period. IFC will also advise the company on the  review of its sustainability strategy, mapping of raw materials, and pursuit of certifications to strengthen responsible plastic production in Brazil.

In addition to the environmental component, America Embalagens has committed to increasing female participation in technical positions from 19% to 30% over the next eight years. The initiative includes strengthening training programs and encouraging women’s careers in Science, Technology, Engineering, and Mathematics (“STEM”), addressing the low representation of women in key sectors of the country’s formal labor market.

“We hope this investment, which marks IFC’s debut in plastics circularity in Latin America and the Caribbean, can encourage other market players to adopt innovative technologies that enable significant reduction in plastic use in packaging for hygiene and beauty products,” says Raphaël Eskinazi, IFC Regional Investment Manager for Manufacturing and Forests in Latin America and the Caribbean. “This partnership with America Embalagens reinforces IFC’s commitment to advancing sustainable packaging solutions in Brazil, a crucial step to address the global challenge of plastic waste.”

IFC’s focus on promoting the circular economy is aligned with the World Bank Group’s strategy for Brazil through 2028, centered on productivity-driven growth, inclusive development, and leveraging the country’s potential as a sustainable economy and global climate leader. The manufacturing sector, responsible for about 14% of GDP and approximately 20% of formal employment, is key to IFC’s goal of driving solutions and projects for climate adaptation and resilience.

In May of this year, IFC launched the new Harmonized Circular Economy Finance Guidelines, developed to help investors, financial institutions, and private companies identify and quantify opportunities to direct capital to projects that promote circularity.

About America Embalagens

America Embalagens is one of the largest suppliers of rigid plastic packaging for the food, beverage, household cleaning, personal hygiene, and beauty sectors. The company is recognized in the market for developing packaging solutions for the largest consumer goods companies in the industry. America Embalagens meets the highest international standards through its pillars of innovation, sustainability, and efficiency, utilizing state-of-the-art equipment and operating from one of its four manufacturing units—one located in Argentina and the others in the Brazilian states of Rio Grande do Sul, Paraná, and São Paulo. For more information, visit www.americaembalagens.com.

[1] Source: Abilplast, Perfil 2025