In October 2025, the International Finance Corporation (IFC), a member of the World Bank Group, announced a strategic investment in America Embalagens, one of Brazil’s leading rigid plastic packaging manufacturers. The funding aims to support the expansion and modernization of the company’s largest plant in São Paulo state. This initiative aligns with efforts to enhance Brazil’s circular economy, as the country leads plastic production in Latin America and has seen a steady rise in the reuse of waste as raw material, with expectations for continued growth in recycled resin production.
The plant expansion will include two new production lines capable of manufacturing up to 200 million plastic tubes annually, using up to 80% recycled content. The project will implement cutting-edge technology to achieve near-zero waste, promote recyclable monomaterial packaging, and produce lighter and more sustainable packaging options. These improvements represent a significant advancement toward environmentally friendly and resource-efficient plastic production in Brazil.
IFC’s investment totals up to €65 million, consisting of a €32.5 million loan from its own funds and an equal amount mobilized from private investors. The financing is structured as an incentive-based loan, offering reduced interest rates if America Embalagens meets a target of 20% recycled resin use during the loan period. IFC will also provide advisory support to help the company enhance its sustainability strategy, assess raw material sourcing, and pursue certifications to ensure responsible plastic production practices.
Beyond environmental benefits, the project also emphasizes gender inclusion. America Embalagens has committed to increasing female participation in technical roles from 19% to 30% within eight years. This goal will be supported by new training programs designed to encourage women to pursue careers in science, technology, engineering, and mathematics (STEM), addressing gender disparities in Brazil’s industrial workforce.
According to IFC’s Regional Investment Manager, Raphaël Eskinazi, this marks IFC’s first investment in plastics circularity in Latin America and the Caribbean and aims to inspire other companies to adopt innovative technologies that reduce plastic use. The project supports the World Bank Group’s strategy for Brazil through 2028, which focuses on productivity-led growth, inclusive development, and climate leadership. IFC’s continued efforts in promoting circular economy initiatives are also reinforced by the launch of the Harmonized Circular Economy Finance Guidelines, which help direct capital toward sustainable and resource-efficient business models.
