Braskem S.A. has signed an agreement through its wholly-owned subsidiary Braskem Netherlands B.V to form a joint venture with Terra Circular, the parent company of Dutch recycler ER Plastics.
Under the agreement, once it has been executed and the conditions precedent have been met, Braskem will become the controlling shareholder of the JV with the possibility of extending the use of this technology to other areas as well. Terra Circular will transfer the shares of ER Plastics to the JV.
Founded in 2017 in Sittard by its current managing director and owner Ali Hakan Güven, ER Plastics was originally focussed on the development of technology to process waste plastic that would otherwise be incinerated into flexible and light compression-moulded roadway mats. Since then, the company has grown: from processing some 5,000 tonnes of plastic waste a year on a single line, today ER Plastics operates three production lines at a new location in Weert, also in the south of the Netherlands, and boasts an annual mechanical recycling capacity of 23,000 tonnes. The company has also expanded its product range to include transport pallets.
For Braskem, the deal with Terra Circular is in line with its macro goals for sustainable development, which include finding a solution for the proper disposal of plastic waste, achieving sales of 300 thousand tonnes of products with recycled content by 2025 and promoting projects aimed at the circular economy, both through mechanical and advanced recycling.