LyondellBasell is acquiring full ownership of APK AG in hopes of adopting the latter’s solvent-based recycling technology for low-density polyethylene (LDPE) and increasing recycling rates for hard-to-recycle flexible plastic waste.
Apparently, most mixed plastic waste generated in the consumer sector is made of LDPE. LyondellBasell hopes to overcome roadblocks to recycling the material and complement its existing mechanical and advanced recycling technologies with APK’s solvent-based recycling process.
This technology involves the separation of different polymers found in hard-to-recycle, flexible plastic waste and the production of materials with a ‘high degree’ of purity. The recyclate is said to be suitable for packaging in applications such as personal care products, and will be sold under LyondellBasell’s Circulen portfolio.
LyondellBasell has previously invested in APK and is entering into an agreement to acquire the company after it entered into insolvency at the end of May 2024. Closing of the transaction is subject to customary closing conditions.
The acquisition is also expected to bolster LyondellBasell’s Circular and Low Carbon Solutions business, which was founded as part of its new sustainability strategy and has reportedly made investments upstream in plastic waste sorting and recycling operations across Europe, Asia, and the United States.
“We see APK’s solvent-based recycling technology as a vital addition and complementary to our existing and future mechanical and advanced recycling operations,” says Yvonne van der Laan, executive vice president of LyondellBasell’s Circular and Low Carbon Solutions business. “This is an important further step toward reaching our goal to produce and market at least 2 million metric tons of recycled and renewable-based polymers annually by 2030.
“The highly motivated culture of APK will be an excellent fit for LYB. We want to build on the excellent progress of APK and fully leverage its expertise of R&D, project engineering and operations teams, solidifying our position as an industry leader in sustainability.”
Steve Döring, CEO of APK AG, adds: “We are very pleased that we entered into an agreement with LYB, securing the future of the company. With its ambition to be a global leader in circular solutions and technologies, LYB is a perfect strategic fit that allows investments into growth opportunities ensuring that our unique solvent recycling technology can realize its full potential.”
APK has recently scaled its proprietary Newcycling technology for the recycling of post-consumer plastic waste with a focus on the flexible, multi-material packaging waste material stream. The process combines mechanical pre-treatment steps with solvent-based purification and separation processes to recycle complex, flexible packaging waste like multilayer films.
In other news, Borealis set its own sights on improving access to chemically recycled feedstock last year by acquiring a majority stake in chemical recycling solutions provider Renasci. It has since signed another agreement with mechanically recycled polypropylene compound producer Rialti, intending to add 50,000 tonnes of recycled compounding capacity to Borealis’ operations and strengthen its circular portfolio with sustainability-minded injection moulding and extrusion solutions.
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