Plastics, chemicals and refining company LyondellBasell and resource management firm Suez have started jointly operating plastics recycling venture.
Both the firms closed a transaction that makes each company an equal partner in Quality Circular Polymers (QCP), a plastics recycling firm in Sittard-Geleen, the Netherlands.
Established in 2014, QCP owns facility in Sittard-Geleen near Maastricht which transforms used plastic material into virgin-replacement quality polypropylene (PP) and PP materials.
The plant is capable of converting consumer waste into 25,000 tons of PP and high-density polyethylene (HDPE). It aims to have 35,000 tons of production capacity later in 2018 and reach 100,000 tons by 2020.
LyondellBasell CEO Bob Patel said: "Partnering with Suez allows us to contribute to the circular economy in a way that no plastics company has before.
"For several years, we have seen increased demand for recycled and reused plastics, especially in Europe. With QCP, we have combined our respective expertise with Suez to create an innovative system that can be scaled as the circular economy grows."
The QCP will use Suez’s technology solutions to improve the identification, separation and preparation of materials to be used as feedstock as well as LyondellBasell’s plastic production technology.
The firm will also leverage LyondellBasell’s experience in product development and deep knowledge of important end markets such as consumer goods.
Suez CEO Jean-Louis Chaussade said: "The circular economy will increasingly develop into a critical part of the plastic value chain. Moving forward, we will bear in mind the economics of operating our businesses must be balanced with environmental awareness.
"As we move towards becoming value players in the circular economy, we will continue to seek opportunities for future growth."
LyondellBasell said it will add recycled products produced by QCP to its range of existing PE and PP materials.
Suez, which processed 400,000 tons of plastic waste and produced 150,000 tons of new plastic resources in 2017, aims to boost its processing capacity by 50% to 600,000 tons in 2020.