Borealis Commits EUR 49 Million to Expand Circular Design Capabilities in Burghausen, Germany

Borealis Commits EUR 49 Million to Expand Circular Design Capabilities in Burghausen, Germany

William Faulkner 22-Jan-2026

EUR 49 million investment in Burghausen boosts Borstar Nextension polypropylene, supporting recyclable monomaterial solutions and regulatory-compliant circular packaging innovation.

The announced EUR 49 million investment at the Burghausen manufacturing site in Germany marks a significant step toward advancing next-generation polypropylene solutions designed for a circular economy. This strategic allocation of capital is aimed at expanding the commercial-scale production of Borstar Nextension polypropylene (PP), a portfolio of advanced single-site polypropylene grades engineered to deliver higher purity, improved processing efficiency, and superior end-use performance.

By scaling up production capacity in Burghausen, the company is strengthening its ability to serve customers across multiple high-growth industries, including packaging, healthcare, mobility, and fibers. These sectors are facing increasing pressure from both regulators and consumers to adopt materials that combine performance excellence with sustainability credentials. The expanded output of Borstar Nextension PP grades will help customers respond proactively to these evolving demands while maintaining competitiveness in their respective markets.

A core objective of this investment is to accelerate the industry-wide shift toward circular product design through the use of high-performance monomaterial solutions. Traditional multilayer structures, while functional, often pose challenges for recycling due to material incompatibility. Borstar Nextension technology addresses this issue by enabling the integration of multiple functional properties—such as strength, clarity, sealing performance, and processability—into a single polypropylene material. This approach allows manufacturers to replace complex multilayer systems with monomaterial PP alternatives, simplifying recycling streams, reducing overall material usage, and supporting weight reduction without compromising performance.

In the packaging sector in particular, these advancements are proving critical. Brand owners and converters are under mounting pressure to meet the requirements of the EU Packaging and Packaging Waste Regulation (PPWR), which sets ambitious targets, including the goal of making all packaging recyclable by 2030. The growing range of Borstar Nextension PP grades has already demonstrated its value in flexible packaging applications, where it enables improved recyclability while also delivering enhanced clarity, higher purity, better sealing behavior, and smoother processing on existing production lines.

Beyond regulatory compliance, the investment also supports long-term customer growth by providing access to innovative polymer solutions that align sustainability with operational efficiency. Improved processability can translate into lower energy consumption and reduced production waste, further strengthening the environmental and economic case for adoption. These benefits help customers future-proof their product portfolios while responding to increasingly stringent sustainability expectations from regulators, retailers, and end consumers.

Commenting on the investment, Craig Arnold, Executive Vice President Polyolefins, Circular Economy Solutions and Base Chemicals, emphasized that expanding Borstar Nextension PP production capacity enables customers to stay ahead in a rapidly evolving market and regulatory environment. He highlighted the move as a clear demonstration of the company’s ongoing commitment to increasing the availability of innovative, recyclable polymer materials that can be applied across a wide range of industries.

Overall, the Burghausen investment reinforces a long-term strategy focused on circularity, innovation, and customer-centric growth. By combining advanced material science with scalable industrial production, it plays a crucial role in supporting the transition toward more sustainable and recyclable plastic solutions across Europe and beyond.

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