MILAN: Seri Industrial Group has signed an industrial and commercial agreement with consumer goods group Unilever to develop its plastic business, the Italian company said on Monday.

Seri Plastic will set up a jointly owned business with Unilever and will buy and convert the London-based group's plant in the southern town of Pozzilli, which will recycle plastic waste based on EU circular economy models.

Milan-traded shares in Seri Industrial were up 8.7% at 1130 GMT.

The deal is in line with Unilever's "Clean Future" global project, which includes the aim of halving the use of plastics in its packaging by 2025, the statement said.

The joint venture will invest 75 million euros ($89.26 million) in the project and keep all the workforce currently employed at the site, it added.

Unilever has committed to buying the products from the converted plant and Seri Plast will be given the opportunity to increase its stake in the venture.