Norway headquartered BEWI, a leading international manufacturer of packaging, insulation and circular consumer commodities, has acquired 51% shares of UK based plastic recycler Volker Gruppe.
BEWI obtains the largest supply of expanded polystyrene (EPS) from Volker Gruppe that conducts collection of over 6,000 tonnes of EPS along with other categories of wastes including HDPE, LDPE, electronic waste, old corrugated containers and paper. The company's processing and world trade in plastics and paper volumes at 25,000 tonnes per year.
The acquisition will enable BEWI to exercise good control over the waste material collection, thereby consolidating the company’s hold in the UK and strengthening its vision for the circular economy.
Polystyrene is a synthetic resin composed of styrene monomers that are commercially synthesized from petroleum. Expanded polystyrene is a white, lightweight thermoplastic produced from polystyrene beads that are subjected to expansion through the moulding process. EPS is extensively used in the manufacturing of food containers, insulations, automobile components and road safety materials.
As per ChemAnalyst, the global demand for expanded polystyrene touched a value of USD 9.5 billion in 2020. The heavy usage of expanded polystyrene in the food and non-food packaging sector along with growing insulation work in construction propel the rising expanded polystyrene demand that is forecasted to grow with a CAGR of over 4%. The acquisition is expected to aid BEWI to establish the complete value chain of circular EPS in the UK. It will also support the company to expand its product portfolio to cater to sustainable customer solutions.