Borealis has acquired Austrian plastics recycler Ecoplast Kunststoffrecycling for an undisclosed sum to further develop mechanical recycling capabilities.
Based in Wildon, Ecoplast is engaged in the processing of post-consumer plastic waste from households and industrial consumers.
Every year, the company is said to convert around 35,000 tons of post-consumer plastic waste from households and industrial consumers into low-density polyethylene (LDPE) and high-density polyethylene (HDPE) recyclates, which can be used in plastic film applications.
Borealis chief executive Alfred Stern said: “Borealis recognises 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.
Ecoplast produces granules of LDPE and HDPE in a range of colours and compositions.
LDPE is resistant to chemicals impervious to water vapour, odourless and taste-neutral, making it as suitable material to be used for all types of film packaging.
HDPE is resistant to high temperatures and chemicals, making it as suitable material to be used for all kinds of bottles, including shampoo, beverages and cleaning products. It can also be used for canisters, drinks crates and piping.
Borealis is anticipating that the recycled PO market will grow significantly by 2021, and the acquired business will help the company in terms of growth and sustainability.
Ecoplast managing director Lukas Intemann said: “We have located potential synergies in many operative and strategic areas, especially in product quality R&D and future applications of polyethylene-film-recyclates. The combination of Ecoplast and Borealis holds the potential to be groundbreaking for the market.”
Based in Vienna, Borealis is a major provider of advanced solution in the fields of polyolefins, base chemicals and fertilizers.
With around 6,600 employees, the company carries out operations in more than 120 countries across the globe.
In 2016, Borealis acquired European major post-consumer polyolefin recyclates producer mtm plastics and mtm compact to expand its presence in the PO market.
The company is continuously investing to develop new technology and products in the area of circular polyolefins.