Recycled polyolefins market growth: Borealis acquires Austrian plastic recycling company
30 Aug 2018 --- Borealis, a provider of innovative solutions in the fields of polyolefins (PO), base chemicals and fertilizers, has fully acquired the Austrian plastics recycler Ecoplast Kunststoffrecycling GmbH (Ecoplast). The move hopes to set Borealis in a strong position in the expanding recycled PO market, which it expects to grow substantially by 2021.
“Borealis recognizes the increasing need for plastic recycling and sees the circular economy as a business opportunity. Borealis already has a long-term collaboration with Ecoplast and this acquisition is the next logical step in building our mechanical recycling capabilities. Eventually, we want to use our experience to develop an effective blueprint for the end-of-use phases for plastics that can be applied in other parts of the world,” says Alfred Stern, Borealis Chief Executive.
Based in Wildon, Austria, Ecoplast processes around 35,000 tons of post-consumer plastic waste from households and industrial consumers every year, turning them into high-quality LDPE and HDPE recyclates, primarily but not exclusively for the plastic film market.
In light of expected recycled PO, Borealis has made PO recycling a key element of its overall PO strategy because of its potential to support both growth and sustainability. Borealis highlights itself as an industry frontrunner in making polyolefins more circular. In 2014, it began offering high-end compound solutions to the automotive industry, consisting of 25 percent and 50 percent post-consumer recycled content.
Borealis was also the first virgin PO producer to explore the possibilities of mechanical recycling, by acquiring one of Europe's largest producers of post-consumer polyolefin recyclates - mtm plastics GmbH and mtm compact GmbH – in July 2016. Since then it has continued to invest into the development of technology and new products in the area of circular polyolefins.
“The combination of Ecoplast and Borealis holds the potential to be groundbreaking for the market,” says Ecoplast’s Managing Director Lukas Intemann.
Polyolefins are the largest class of synthetic polymers made and used today. There are several reasons for this, such as low cost of production, lightweight and high chemical resistance. Borealis notes that in the world of finite resources, the circular economy model has vast potential. For the polyolefins industry, this paradigm shift holds both opportunities and challenges. The move to the circular economy must be made as eco-efficiently as possible but circularity has to be the priority. It requires innovative material solutions and greater cooperation along the entire value chain.
