Alpla expands PET recycling capacity in Germany with Texplast acquisition

08 Mar 2022 --- Alpla Group will increase its annual recycling volume in Germany to 75,000 tons of PET bottles after agreeing to acquire recycling company Texplast from the FROMM Group and all of its shares in the joint venture PET Recycling Team Wolfen. 

PET recyclate is in hot demand as brands in Europe prepare for increasingly stringent circular economy regulations. The EU’s Single Use Plastics Directive imposes a 90% collection rate for plastic beverage bottles by 2029 and a minimum of 25% recycled plastic in PET bottles from 2025, rising to 30% from 2030 in all beverage bottles.

Meanwhile, recycled plastic prices are skyrocketing worldwide as industries fight for control over the market to boost their environmental sustainability credentials.

“Our goal is the ‘bottle to bottle’ cycle. We are stepping up our activities worldwide to meet growing demand for post-consumer recyclate. This investment will strengthen our position in the German market and guarantee high quality and availability of the material for our customers,’” comments Alpla CEO Philipp Lehner.

The company’s 75,000 tons of PET input includes 20,000 tons from BTB Recycling, which it acquired in October 2021. Texplast and PET Recycling Team Wolfen will supply the remaining 55,000 tons.

Bottle to bottle focus
Founded in 1992, Texplast produces PET pellets and flakes from used PET bottles. The pellets are primarily used for preforms for new PET bottles. The colorful PET flakes produced during the process are used by the packaging manufacturer FROMM to produce packing strap. However, the focus has increasingly shifted toward the bottle cycle in recent years.Alpla is acquiring recycling company Texplast and joint venture PET Recycling Team Wolfen.

“The long-term and successful collaboration with the FROMM Group was the perfect basis for this development. The acquisition enabled us to increase our capacity quickly and efficiently. And this will also help us to secure production for both sides in the future” says Georg Lässer, head of recycling at Alpla.

The colorful flakes will also be supplied exclusively to FROMM in the future. “We have a highly motivated, fully functional team, and we are proud to welcome all 125 Texplast employees into the Alpla family,’ adds Lässer.

“Yellow bag” recycling
PET Recycling Team Wolfen specializes in the recycling of PET bottles from Germany’s household recycling bins, known as the “yellow bag.” These are returned from household collection to the recycling loop. The sorting and processing systems at Texplast’s site in Wolfen, Germany, which are “unique worldwide,” were set up in 2019.

“The change in ownership underlines the transformation of Texplast from a material supplier for plastic strapping to a key player in the bottle cycle. With the new owners, the company will be able to fulfill its potential in this field even more efficiently,” Rico Seiler, managing director of Texplast.

The acquisition was officially finalized on February 25, 2022. The parties have agreed not to disclose the purchase price or further details. The acquisition is subject to legal and regulatory approval.Alpla will increase its annual recycling volume in Germany to 75,000 tons of PET bottles.

Global recycling expansion
In early 2021, Alpla announced that it would invest an average of €50 million (US$54.4 million) a year until 2025 in the ongoing expansion of its recycling activities. In particular, it plans to globalize its activities in high-quality recyclates to close the materials cycle in various regions.

In total, the annual production capacity of Alpla’s recycling companies, joint ventures and collaborations amounts to approximately 203,000 tons of recycled PET and 74,000 tons of recycled HDPE.

Last year, Alpla launched a PET recycling facility in Romania with its partners Ecohelp and United Polymer Trading. The project aims to produce 15,000 tons of food-grade post-consumer recycled PET each year.

The company has also formed a joint venture with global engineered materials supplier Glatfelter and Swedish startup Blue Ocean Closures to develop fiber-based closures using “dryforming” technology.

By Joshua Poole