LyondellBasell adds solvent-based recycling to circular solutions portfolio through APK acquisition

23 Aug 2024 --- US-based packaging materials supplier LyondellBasell (LYB) has entered an agreement to acquire German recycling technology specialist APK in Merseburg, Germany. The move integrates APK’s solvent-based recycling technology into LYB’s existing mechanical and advanced recycling technologies.

LYB previously invested in the company and collaborated to scale the technology. In 2023, it participated in a €130 million (US$139 million) funding round to scale APK’s proprietary recycling technology, Newcycling.

The acquisition secures the company’s future after it entered into insolvency at the end of May.

Yvonne van der Laan, LyondellBasell’s executive vice president of Circular and Low Carbon Solutions, sees APK’s solvent-based recycling technology as a “vital addition.”

“This is an important further step toward reaching our goal to produce and market at least 2 million metric tons of recycled and renewable-based polymers annually by 2030,” she comments.

“The highly motivated culture of APK will be an excellent fit for LYB. We want to build on the excellent progress of APK and fully leverage its expertise of R&D, project engineering and operations teams, solidifying our position as an industry leader in sustainability.”

Zeroing in on the hard-to-recycle

APK’s recycling technology is a solvent-based method for processing low-density PE.

LYB aims to increase the recycling of hard-to-recycle flexible plastic waste materials — which today make up the majority of mixed plastic waste from the consumer sector.

APK’s recycling technology is a solvent-based method for processing low-density PE.The technology separates the different polymers of hard-to-recycle, flexible plastic waste materials and produces recycled materials with a high degree of purity suitable for new flexible packaging of personal care products, for instance.

The materials produced will be sold under the LYB Circulen portfolio.

The acquisition aligns with LYB’s plans to widen access to innovative and differentiated recycling technologies through its Circular & Low Carbon Solutions (CLCS) business.

CLCS has started to make substantial investments upstream in plastic-waste sorting and recycling operations in Europe, the US and Asia.

“We are very pleased that we entered into an agreement with LYB, securing the future of the company,” says Steve Döring, CEO of APK. 

“With its ambition to be a global leader in circular solutions and technologies, LYB is a perfect strategic fit that allows investments into growth opportunities ensuring that our unique solvent recycling technology can realize its full potential.”

Closing of the transaction is subject to customary closing conditions.

LYB in headlines

In other activities, LYB launched its Polybatch Effects Frost masterbatches earlier this year. The batches transform PET packaging with a matte frost effect in two distinct styles. Polybatch Effects Frost can seamlessly integrate various colors to achieve a high-end, sophisticated look.

In January, LYB signed two power purchase agreements in the US, bringing the company’s total renewable electricity power to 1,366 megawatts — accounting for 89% of its goal to procure at least 50% of its electricity from renewable sources by 2030.

By Benjamin Ferrer