Litoplas S.A.

Closing the Loop: How Litoplas is Scaling Circular Packaging in Latin America

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Authors

Eugenio Luis Vélez Vásquez

Eugenio Luis Vélez Vásquez

Sofía  Lama

Sofía Lama

Usvaldo Carrera De La Torre

Usvaldo Carrera De La Torre

Lorenzo Lozano

Lorenzo Lozano

Matta Eustace

Matta Eustace

Mirriam Mukoya

Mirriam Mukoya

Schools

Universidad de Navarra

Universidad de Navarra

Kenyatta University

Kenyatta University

Dominican University

Dominican University

Professors

Isabel Rodriguez Tejedo

Isabel Rodriguez Tejedo

Anjali Chaudhry

Anjali Chaudhry

Mary Ragui

Mary Ragui

Global Goals

8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 12. Responsible Consumption and Production 16. Peace, Justice and Strong Institutions

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Summary

While many companies focus on a single innovation, one could say that Litoplas’ innovation lies in the integration of sustainability into its business model. While sustainability itself is not a new concept, the string of innovations that emerged from this commitment makes it transformative. From the creation of their spin-off, Polyrec, dedicated to transforming post-consumer plastic waste back into raw materials Litoplas contributes directly to the Sustainable Development Goal 12.

Since then, Litoplas decided to further commit to their sustainable production agenda and have taken various steps to do so such as, adopting cutting-edge machinery such as the Bobst Exlam (extrusion lamination) machine, which replaces the use of chemical adhesives in the lamination process with a molten plastic layer, which aligns with SDG #9 as they have optimized production efficiency and reduced harmful emissions. Beyond production, Litoplas has demonstrated strong social commitment through SDG #4 and SDG #8 by providing education for waste pickers about recyclable materials, donation recycling stations to local schools, and collaborating with artisans who create crafts from discarded materials. Together, these initiatives reflect a holistic approach where innovation serves not only the company’s growth but also the well-being of people, communities, and the planet.

Innovation


Prior to the creation of Polyrec and the formal implementation of sustainability into their business model, they recycled the plastic waste within their own facilities as a small branch of their operations. This early initiative already aligned with SDG #12, given it reduced waste and pushed for the circular use of materials within the company. By minimizing their plastic waste, Litoplas contributed to more efficient resource management and reduced its environmental footprint, setting the foundation for their future sustainable endeavors.

Then in 2013, Polyrec was founded in an effort to scale their recycling operations. This was only the beginning of a company-wide effort to reach carbon neutrality as well as help their environment. Polyrec collects and processes post-consumer plastic waste, transforming it into raw materials for packaging. Through this circular process, Litoplas has been able to reduce their carbon dioxide emissions and their need for pure plastics, but have been able to advance SDG 8 by improving the livelihoods of local waste pickers who now sell recyclable materials to Polyrec.

Litoplas then further strengthened their commitment to sustainability by partnering with companies such as Bobst to use machines like the Exlam machine, and by re-engineering cardboard boxes using “Cartonplast” which lasts up to 25 times more than regular cardboard. These innovations embody SDG #9, by using advanced technology to reduce raw material consumption and extend product lifecycles. Additionally, through the obtention of various certifications which according to the company’s sustainability director, Juliana Rincón, made them “The first company in Colombia that has packaging made with recycled materials that can be in direct contact with food.” Litoplas has supported SDG 3 & 4. The latter is reflected in their donation of recycling stations to schools across Barranquilla, through which they have educated upcoming generations about proper waste management and helped build a truly circular economy.

Closing the Loop: How Litoplas is Scaling Circular Packaging in Latin America

Inspiration

What truly inspired Litoplas’ sustainability journey is a long standing commitment to responsible production and a sense of social and environmental responsibility that existed long before sustainability became a popular trend. As Juliana Rincón stated, “The company is not talking about sustainability because everyone else is talking about that. Litoplas, many years ago, has had that commitment with the environment and with social responsibility.” This vision originated from the company’s founder, Luis Mora Martin-Mora, who then passed it on to his son, and now CEO of the company, Jose Luis Mora, who, as Rincón mentioned, “Asked, what happened with the packaging after we produced them? What happened then?” That question sparked a series of innovations which led to the creation of Polyrec, Litoplas’ spinoff dedicated to giving plastic packaging a second life, closing the loop between production and recycling.

Rincón was careful to emphasize that this initiative "Wasn't just about producing and producing and not caring what happened next,” but about providing “a solution to the industry to finish the chain.” Her words reflect a genuine desire to make business a force for good, one that helps both people and the planet.

Furthermore, Rincón expressed pride in the company’s collaborative spirit: “We are at the beginning and the end of the change... because we have a solution.” This mindset has guided Litoplas through partnerships with recyclers, artisans, and local schools, helping them build a circular economy and empower their community. As she concluded, “the problem is not the plastic, the problem is what we do with it.”

Overall impact

Impact on society:

Litoplas’ efforts towards a circular economy and a sustainable environment have not gone unnoticed in their society as their initiatives are particularly aimed in providing better livelihoods for informal workers such as waste pickers and the promotion of environmental educations in schools. Through these initiatives, Litoplas has been able to give waste pickers a better livelihood through educating them on which plastic materials can be recycled, allowing them to sell more used plastics to recycling companies such as Polyrec. Additionally, through the donation of recycling centers to schools around the city of Barranquilla, they are ensuring that students are taught the importance and the methodology of recycling, further ensuring a circular economy in the area while unequivocally enforcing the principles of SDG #8.

Impact on the Environment:

Litoplas has made significant strides in reducing environmental harm through its sustainability efforts. Since the implementation of sustainability in Litoplas’ business model and the creation of polyrec, they have been able to recycle up to 10,000 tons of plastic waste a year which over the years translates to around 100,000 tons of plastic redirected from landfills and potentially from waterways. Additionally, Litoplas let us know that they have an expansion plan for Polyrec in the near future which is going to scale their operations from 10,000 tons a year to 30,000 by 2027. However, there is still some amount of packaging that ends up in landfills or waterways, which is why by eliminating adhesives from its packaging, Litoplas has further minimized the harmful environmental impact of plastic waste, making the remaining waste less dangerous when it does turn up in landfills contributing to SDG #12. Moreover, Litoplas, along with Polyrec, Grupo EXCALA, and PepsiCo, developed a new technology for cardboard packaging called Cartonplast. Boxes made from this recycled material last up to 25 times more than regular cardboard boxes, exponentially reducing the consumption of cardboard and cutting down on waste, further supporting sustainable production practices aligning with SDG #9, as the company continues to develop new technologies to reduce environmental harm and improve the sustainability of the industrial process.

Impact on Business: The impact of the innovation on the business has been very noticeable as Litoplas was the first company in Colombia to obtain certifications that allowed them to use recycled materials in the food industry. Additionally, the use of new technologies has significantly reduced the company’s carbon footprint, thereby, reducing its clients footprints. This created an incentive for other companies to choose Litoplas when looking for flexible packaging providers. In short, the implementation of sustainability in their business model has created aggregated value to the company’s value proposition whilst helping the company’s reputation and goodwill.

Short-term and Long-term Effects:

In the short term, the effects weren’t as noticeable as they are now as the different initiatives were implemented in different stages. After Polyrec was successfully launched, Significant amounts of plastic were diverted to their operation, however, it was nowhere near what it is today. In the long term, as Litoplas continues to expand its recycling capabilities, they are starting to reap what they sowed as now that all of the phases of their sustainability program have been implemented, the company has not only been able to successfully recycle and reuse thousands of tons of plastic, but have created an exceptional value proposition for their clients. These efforts support SDG #8 as they are actively generating new jobs in the recycling sector and supporting the broader economy through the development of sustainable infrastructure.

Specific Evidence of the Impact:

Litoplas’ innovation shows measurable results across operations, markets, and community. Since launching Polyrec, the company is reigning in six to seven million dollars a year and has recycled around 100,000 tons of plastic, diverting material from landfills and waterways and feeding recycled resin back into production to buffer resin price swings. Currently, Litoplas has yet again invested funds into Polyrec with a plan to increase their recycling capacity to 30,000 tons of plastic a year by 2027. On the factory floor, replacing adhesive-based lamination with extrusion has eliminated adhesives in targeted steps, cutting harmful gas emissions, reducing dryer energy demand, and lowering worker exposure - efficiency gains which translate into more stable quality and lower unit costs. Litoplas’ innovative packaging solutions, such as the re-engineered plastic boxes for PepsiCo, along with the previously mentioned accomplishments, exemplify their commitment to SDG #9 by providing a more sustainable alternative in their production process and providing a more sustainable alternative to cardboard, which can be reused and recycled. Additionally, by virtue of the various food-contact certifications for recycled-content packaging, Litoplas has gained access to premium markets, while aligning with SDG #12. The company’s commitment to transparency and ethical practices also contribute to SDG #16, as they work within legal frameworks and encourage responsible business practices, thus promoting trust and stability in the industry.


Business benefit

Embedding circularity into Litoplas’ operation has created tangible, defensible business value. For starters, Polyrec converts internal and post-consumer plastic waste into raw materials, lowering material costs, stabilizing supply, and insulating the company from raw material price volatility. These operational improvements have led to better financial stability and a more resilient business model. This aligns with SDG #8 as the company’s cost savings have translated into more competitive pricing, leading to job creation and further business expansion. Secondly, the shift from adhesive-based to extrusion lamination simplifies compliance and cuts operating risk, which has directly resulted in lower unit costs and more consistent, higher-quality products, supporting SDG #9 by fostering sustainable industrial practices and innovation in the production process.

Furthermore, Litoplas’ early move to obtain food-contact certifications for recycled materials opened premium, regulated segments, creating a clear brand differentiation. This strategic play not only differentiates the brand but also strengthens customer relationships, as more companies demand sustainability in their supply chains. In the context of SDG #12, Litoplas is promoting responsible sourcing, recycling, and packaging practices. The company’s 58 years of engineering expertise, strengthens customer relations in an age where customers now screen suppliers on carbon emissions, safety, and recyclability. The company’s educational initiatives further support SDG #16, by fostering positive relationships within the community while securing an upstream supply and community goodwill, reducing reputational risk and improving stakeholder relations posing an advantage in permitting and brand partnerships.

Social and environmental benefit

As mentioned previously, Litoplas’ innovation goes beyond a single product or process, it is the integration of sustainability into every aspect of its business model. This translates into measurable benefits for people and the planet, while advancing several United Nations Sustainable Development Goals. Environmentally, Polyrec has recycled around 100,000 tons of plastic, diverting material from landfills and waterways reducing demand for virgin raw materials. These efforts directly push SDG #12 and SDG #13 simultaneously promoting a circular economy that minimizes environmental degradation. Furthermore, replacing adhesive-based lamination with extrusion laminations removes a source of hazardous emissions and associated worker exposure, while lowering energy use from drying, are direct cuts to the company’s carbon footprint reinforcing their commitment to SDG #9 by creating safer conditions for both workers and nearby communities.

Keeping in mind that Litoplas’ mission extends beyond environmental innovation, the company has also made significant social contributions aligned with SDG #4 and SDG #8. Given Litoplas’ investments in education through the donation of recycling hubs to school sin Barranquilla and running raining that clarifies what can and should be recycled, they help defuse that knowledge into households and the informal sector, thus, boosting plastic recovery rates and improving the economics and safety of waste pickers, who can sort higher-value streams and earn more with less uncertainty. Moreover, Litoplas’ partnership with local artisans to upcycle discarded material create micro-enterprise opportunities and keep materials in productive use longer while empowering female entrepreneurship and creativity.

Interview

Juliana Rincón, Sustainability Director

Watch video on YouTube

Business information

Litoplas S.A.

Litoplas S.A.

Barranquilla, Atlantico, CO
Business Website: https://litoplas.com/
Year Founded: 1967
Number of Employees: 501 to 1000

Litoplas S.A. is a Colombian corporation specializing in the design and manufacture of flexible packaging (films, laminates, and pouches) for food, personal care, and consumer goods. Founded in 1967, headquartered in Barranquilla, the company operates internationally, with production and commercial presence serving clients across North and South America (including a facility in Guatemala).