What happened
Achieving a major milestone this week, PureCycle Technologies (PCT 1.81%) announced that it has reached mechanical completion of its first polypropylene purification facility, representing a major development that brings the facility closer to commencing operations.
As of the end of Thursday's trading session, the plastic recycling stock has climbed 13.2% since the end of last Friday's trading session, according to data provided by S&P Global Market Intelligence.
So what
With mechanical completion of the facility located in Ironton, Ohio, PureCycle Technologies says it will now begin operational pre-start-up activities and safety review processes. In addition, the company has filed for formal certification of completion regarding Ironton -- an important step, since certification from the site's independent construction monitor will provide PureCycle with access to additional financing.
The company anticipates initial pellet production starting in the second quarter of 2023, and the project will be formally completed in the fourth quarter of 2023. When fully operational, the Ironton facility is expected to have 107 million pounds of annual production capacity of ultra-pure recycled resin.
While the facility in Ohio will likely be the first one to commence operations, PureCycle has other projects in various stages of development. Besides a project at the Port of Antwerp in Belgium, PureCycle is advancing two projects in South Korea and Japan.
Now what
It's unsurprising that shares of PureCycle are moving higher this week in light of the company's success in achieving mechanical completion of the Ironton facility. Growth investors, however, should recognize that there are still plenty of steps the company must take to achieve commercial operations. Thus, investors should be comfortable with the related risks before adding this plastic recycling stock to their portfolios.
