APK AG, the company behind Newcycling, a patented technology that allows plastic waste, such as multi-layer packaging materials, to be processed into into high-quality LDPE recyclates, is in a good place.
According to a statement released by the company, 2023 was the year in which APK strengthened its corporate strategy, putting in place key elements of its expansion. In February, the company announced that it had secured strategic investments from chemical company LyondellBasell and the family-owned holding and investment company of the LEGO brand Kirkbi, which would enable it to scale its proprietary recycling technology. The in total €130 million raised would be used for a new Newcycling plant.
Successful ISO certifications, achieved in the summer of 2023 for its plant in Merseburg, Germany and the signing of first product supply contracts subsequently provided the basis for ongoing planning and the start of construction of the new large-scale Newcycling plant in 2024.
Supply contracts are already in place for over half of the LDPE recyclate production from the new plant.
The new plant will use mixed waste from flexible plastic packaging to produce high-quality LDPE recyclates. There is an increasing demand for these high-quality LDPE recyclates as a raw material, and not only in the packaging industry. Current plans by the Commission regarding the recyclability of vehicles and quotas for the use of recyclates will rapidly increase the demand and interest from the automotive industry.
“The European Commission’s initiative mandating the use of plastic recyclates in the packaging sector and, in the future, in the automotive branch, has created the ideal framework for our expansion and the construction of additional plants for our physical and solvent based Newcycling technology,” said Dr. Robert Marx, APK AG’s CTO.
“Early next year, we’ll share more information about the location and capacity of our new plant. 2024 is going to be a very exciting year for APK AG and our Newcycling technology,” he added.