Two Austrian plastics players, polyolefin producer Borealis and recycling machinery supplier Erema have signed a letter of intent (LOI) to deepen their cooperation in the field of mechanical recycling.
The two companies aim to enhance recycling processes in a bid to meet increasing market demand for high-quality recyclate with consistent quality, announced the two companies at a joint event in Linz, Austria on 25 June.
As part of the agreement, the two firms will develop improved technologies and processes in mechanical recycling, using Borealis’ expertise in polymers and Erema’s engineering knowledge.
This will involve joint tests, trial runs and pilot projects, the companies further explained.
The companies will also aim to design and implement new and practical technical solutions, to offer higher quantities of recyclates with improved mechanical properties and which are suitable for high-end applications.
Borealis and Erema will also focus on commercialising the products at a faster rate.
Standardising and harmonising input feedstock and recyclate output will be another area of cooperation. This move will enable the broader use of recycled solutions for individual end-use applications and in particular for everyday consumer products.
The partners will also work on upscaling the mechanical recycling industry through exploring the potential of increasing plant size and total production volumes in order to ensure secure and reliable market. In addition, the collaboration will enable the companies to deploy more sophisticated market intelligence in order to better align supply with customer demand.
"It is a sign of how fast the market is changing,” said Manfred Hackl, CEO Erema Gmbh. “Who could have though three years ago that a virgin material supplier and a recycling machinery company would be partnering together?”
Senior vice president innovation and technology of the Borealis Group at Borealis Group Maurits van Tol noted that in its ‘roots’, Borealis was a polyolefins producer. “Our aim is to keep these materials in the loop as long as possible in high-value applications. For this reason, we are partnering with the leading recycling company, who also happens to be a neighbour.”
With headquarters in Ansfelden, Austria, the Erema Group is a leading supplier of recycling machinery. Over 6000 Erema systems are now in operation around the globe, producing a total of over 14.5 million tonnes of plastic pellets annually.
Vienna-based Borealis is specialised the production of polyolefins but has in recent years expanded its activities in the field of mechanical recycling. The company acquired leading German mechanical plastics recycler mtm plastics in 2016 and Austrian recycler Ecoplast in 2018.