Südpack reveals chemical recycling and decarbonization plans at first virtual conference

08 Jul 2021 --- Südpack hosted its first digital press conference yesterday, outlining the challenges and successes the company experienced throughout 2020, including chemical recycling strides and CO2 reductions. The coextruded film producer also highlighted the results of its 2020 sustainability report. 

“Plastic packaging has a lot to offer. There needs to be a concerted effort by the plastic industry at large [to mitigate plastic pollution], involving raw material suppliers, the chemical industry, brand owners, retailers and end-users,” Südpack’s CEO Eric Bouts emphasized at the conference. 

Expansion ambitions
Südpack’s portfolio comprises films for the food and non-food sectors and medical and technical products. With a headquarters in Ochsenhausen, Germany, Südpack has nine production sites worldwide.

As a private, family-owned business, Südpack does not disclose financial figures regarding turnover and profit; however, Bouts shared 2020 figures were “positive” and in the “high single-digit growth” area.

Within the reporting period, Südpack doubled the capacity at its site in Schwendi, Germany. The company has invested in two extrusion and two slitting lines at its “Competence Center,” which manufactures and converts film made from renewable raw materials.

One highlight was the acquisition of LPF Flexible Packaging, now known as Südpack Grootegast, based in the Netherlands.Meanwhile, Südpack has further invested in its printing, laminating and slitting lines at its plant in Kłobuck, Poland. 

Another highlight from the past year was the acquisition of LPF Flexible Packaging, now known as Südpack Grootegast, based in the Netherlands. The site will be used for developing laminates, constituting a key part of the company’s growth strategy.

Südpack also set up a joint venture near Ahmedabad, India, to cater to the country’s maturing packaging needs in barrier, aesthetics and convenience flexible packaging. This project is scheduled to finalize toward the end of 2021.

“There is a good mix of organically driven initiatives and sustainability solutions, but also retail expansion.” However, more detailed acquisition ambitions remain undisclosed.

Broad sustainability goals
With environmental protection integral to Südpack’s main goals, the company is targeting:

• Downgauging: Creating thinner films that retain the performance and technical properties of standard films, but use fewer materials.
• Renewable resources: Processing renewable polymers, such as PLA.
• Circular economy: Offering PET films with a variable amount of post-consumer recyclate.
• Materials with improved recyclability: Südpack’s portfolio includes PP, PE and PET monomaterial solutions with the same characteristics as the standard materials.

From this roadmap, Südpack aims to generate half of its turnover with products addressing one of these three points by 2025. The current figure is at 35 percent.

Meanwhile, climate neutrality is also one of Südpack’s central medium-term objectives, focusing on both the CO2 neutrality of its products and at its production sites.

Complementary chemical recycling
Chemical recycling makes it possible to recycle multilayer, mixed and contaminated film composites unsuitable for mechanical recycling into high-quality base chemicals.

Bouts explained that a lack of recognition for chemical recycling’s advantages is hindering the circular economy for packaging in Germany.

A truck filled with chemically recycled crude oil from Südpack, left the Recenso pilot plant in Ennigerloh, Germany in February.“Chemical recycling is a fundamental building block to keep products in the loop and contributes to the decarbonization of our economies,” said Bouts, adding that Südpack will actively pursue this technology.

In February, Südpack and chemical recycling company Recenso partnered to “close reusable material loops” in the plastics supply chain. The recovered plastics are made suitable for producing high-performance films to package products with high quality and hygiene standards like food.

Unharmonized EU legislation
Echoing numerous other packaging companies in Europe, Südpack is wary of the ramifications of new and upcoming packaging legislation targeting plastic pollution.

Bouts referenced the European Green Deal and the Circular Economy Action Plan, among others. “Harmonized rules do not exist beyond national borders,” Bouts flagged. 

PackagingInsights has reported on the impacts of the newly implemented EU Single-Use Plastic Directive, which is driving shifts away from the throwaway plastics sector toward fiber-based and reusable alternatives.

Pandemic updates
Despite a tumultuous, pandemic-stricken year, Bouts maintains Südpack “mastered 2020 as a whole.” Production processes remained “undisrupted” and “reliable.” 

The company faced price increases in raw materials throughout Europe, but strived to maintain an “open and fair” approach with customers.

Furthermore, Südpack provided COVID-19 testing on-site and vaccinated more than 300 employees and their families.

By Anni Schleicher