Borealis Suspends Plans for Mechanical Recycling Facility in Schwechat

Borealis, the Austria-based polyolefin manufacturer, has decided to pause the development of its proposed mechanical plastic recycling facility in Schwechat, Austria. The company announced that the project, which was set to produce 60,000 tonnes of mechanically recycled polyolefins annually and commence operations in late 2025, has been suspended until further notice. This decision follows an internal assessment that revealed the project would not meet its intended performance targets under the prevailing market conditions.

The Schwechat site is also home to one of the largest oil refineries operated by OMV, Borealis' parent company. Borealis had intended to integrate its Borcycle M mechanical recycling technology at this location. The Borcycle M process converts post-consumer polyolefin waste into advanced, high-performance polymers for use in demanding applications. Despite the halt in the Schwechat project, Borealis, according to several media reports, remains firmly committed to advancing the circular economy for plastics.

To ensure continuity in the supply of Borcycle M materials to its customers, Borealis is actively leveraging alternative strategies. A notable move in this direction was the acquisition of Integra Plastics, completed in April 2024. Integra, based in Bulgaria, specializes in the production of recycled LDPE (Low-Density Polyethylene), HDPE (High-Density Polyethylene), and PP (Polypropylene) granules in multiple color variants. The company operates with an annual production capacity of 30,000 tonnes. Media reports highlight that Borealis views this acquisition as a strategic step in meeting growing customer demand and expanding its Borcycle M supply.

Borealis continues to explore multiple avenues for increasing Borcycle M production, in line with market needs. However, media reports suggest that there is a noticeable strategic shift within Borealis and its parent company OMV, with an increasing emphasis on chemical recycling over mechanical recycling. Earlier this year, OMV began operations at its expanded ReOil chemical recycling plant, also located in Schwechat. This advanced facility uses pyrolysis technology to convert up to 16,000 tonnes of plastic waste per year into valuable feedstock. The expansion was supported by funding from the EU Innovation Fund, with OMV securing up to €81.6 million for its future plans to build a larger industrial-scale ReOil plant at the same site.

The pause in Borealis’ mechanical recycling project coincides with a broader crisis in the European plastic recycling industry. According to several media reports, closures of recycling facilities across the continent are accelerating due to worsening market conditions. These include a significant drop in domestic production, increased imports, and mounting financial pressures. The total capacity of shuttered plants in 2024 has already doubled in comparison to 2023, and the situation appears to be deteriorating further in 2025, impacting both small-scale operations and major players.