On March 13, 2023, LyondellBasell, a global chemical company, announced that it had reached a final agreement to buy Mepol Group, an Italian and Polish-based producer of recycled technical compounds. According to a press release from LyondellBasell, the acquisition of Mepol S.r.l., Polar S.r.l., and Industrial Technology Investments Poland Sp.z.o.o. strengthens the company's dedication to the circular economy.
Mepol has been producing thermoplastic compounds formulated with recovered materials and recycling plastics for 30 years. Applications for its products include electronics, automotive, and furniture. In addition, the company offers services for packaging recovery and waste management to customers in support of regulatory requirements and expanded producer responsibility. R-HDPE and R-PP are the major recycled plastics produced by this company.
According to Torkel Rhenman, executive vice president of Advanced Polymer Solutions at LyondellBasell, "We will enhance our CirculenRecover and other sustainable solutions for our customers with Mepol Group's expertise in sustainable compounds and LyondellBasell's scale."
LyondellBasell, a global conglomerate based in Rotterdam, Netherlands, started engineering work on a new advanced recycling plant in November 2022. The company is building new plastic waste sorting and recycling facilities in Houston, Germany, China, and India, in addition to its existing mechanical recycling facilities in the Netherlands and Belgium.
In recent years, there has been a significant rise in demand for plastic recycling in Europe. Markets for recycled plastics like R-HDPE and R-PP are anticipated to expand rapidly due to technological advancement and new government regulations.
Industrial packaging, the production of carpets, agricultural films, and furniture, as well as the production of beverage bottles and food containers, all use recycled plastics (primarily, R-PP, R-PET, and R-HDPE). The incline in the cost of making virgin plastics and the lack of availability of base materials for their production is the reason for the rise in demand for recycled plastics in the region.
Europe is not an exception regarding the growing importance of recycling plastics in the global marketplace. R-HDPE, R-LLDPE, R-PP, and R-PET are some of the most widely used recycled plastics in Europe, and the market for recycled plastics there is likely to expand significantly in terms of production and use. Investors looking to take advantage of the rising demand for recycled plastics (R-PP, R-HDPE, and R-PET) will find that the expansion of this industry presents lucrative opportunities.
The demand for plastics recycling is expected to continue growing in the coming months, as evidenced by the rising awareness of the advantages of recycled plastics and the increasing availability of recycled plastic products in Europe. The demand for recycled plastics, mainly for R-PET, R-HDPE, and R-PP, is likely to rise further due to the rising popularity of green packaging, sustainable packaging solutions, and government and private sector initiatives.