Polyethylene and polypropylene producer Borealis has acquired Austrian plastics recycling company Ecoplast Kunststoffrecycling to strengthen its mechanical recycling capabilities.
Ecoplast processes around 35,000t of post-consumer plastic waste collected from households and industrial consumers annually.
It converts the plastic waste into high-quality LDPE and HDPE recyclates, destined for the plastic film market.
Borealis has included PO recycling as an important part of its broader plans as it expects the recycled PO market to grow significantly by 2021.
The company acquired European post-consumer polyolefin recyclates producers mtm plastics and mtm compact in July 2016 to explore the possibilities of mechanical recycling.
Since then, the company has been focused on the development of technology and new products related to circular polyolefins.
Borealis chief executive Alfred Stern said: “Borealis already has a long-term collaboration with Ecoplast and this acquisition is the next logical step in building our mechanical recycling capabilities.
“As an important complement to mtm in Germany, Ecoplast will help us address critical sustainability challenges and become a polyolefin recycling leader.
“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.”
Ecoplast expects the transaction to offer potential synergies in product quality research and development and future applications of polyethylene-film-recyclates.
Borealis is majority owned by Mubadala, which owns a 64% stake in the company.
The company also owns polyolefins manufacturer Borouge under a joint venture with Abu Dhabi National Oil Company.