European recycling group GreenGroup has acquired Lithuanian low-density polyethylene (LDPE) recycling company UAB Ecso.
The financial terms of the deal have not been disclosed.
Founded in 2009, UAB Ecso claims to be one of Lithuania’s leading polyethylene recyclers, with an annual film waste processing capacity of 20,000t.
The company converts film waste from household and industrial post-consumption into recycled LDPE granules.
The acquisition is part of GreenGroup’s mergers and acquisition (M&A) strategy and marks the company’s entry into the polyolefin recycling market.
It is also expected to help the group expand in the LDPE sector across Central and Eastern Europe (CEE).
Over the coming years, the company plans to invest between €150m and €200m to strengthen its position as an integrated recycling group in the CEE region.
GreenGroup board chairman Constantin Damov said: “The Lithuanian model proved to be a local success for closed-loop resourcing of plastic waste, aligned with the circular economy objectives.
“With this investment, we are positioning the Group as the first line of defence for limiting the environmental impact of single-use plastics – a group fitting both PET and polyolefins.
“Our objective is to scale this model in the region and other countries as well.”
Abris Romania partner and head Adrian Stănculescu said: “This latest acquisition consolidates GreenGroup’s recycling activities over the past 20 years and is a decisive step in the Group’s strategy to become a key player in polyolefins recycling in the region.
“Furthermore, it is a strategic investment that reinforces the Group’s commitment to sustainability and to tackling the most pressing environmental issues, such as plastic pollution and reducing carbon footprints.”
The deal with UAB Ecso comes nearly a month after GreenGroup acquired SIGAD, a Romanian company that develops environmental reporting software.
The group is backed by Abris Capital Partners, a private equity firm based in Poland.