LyondellBasell (LYB) announced it has entered into an agreement to fully acquire Germany-based plastics recycler APK.
APK entered insolvency self-administration procedures in May 2024 and has since been looking for new investors. The economic situation of the Merseburg-based company deteriorated during a period when its investors could not agree on the expansion of its Newcycling solvent-based plastics recycling technology.
LYB first invested in APK in February 2023, alongside Kirkbi, the family-owned holding and investment company of the Lego brand. At the time, the two companies helped raise €130 million to build a large-scale Newcycling plant in Merseburg, Germany. Other investors included German venture capital firms MIG Capital, AT Newtec, and Salvia.
Asked whether LYB plans to move ahead with the Newcycling plant at Merseburg, Nick Facchin, senior manager executive communications at LYB, said the company could not disclose any further information at present. He added that more details will be available once the transaction is closed.
LYB said in a statement that APK’s solvent-based plastic recycling technology is a ‘perfect fit’ for its mechanical and chemical recycling technologies. APK's patented technology allows plastic waste, such as multi-layer packaging materials, to be processed into high-quality LDPE recyclates.
“We see APK's solvent based recycling technology as a vital addition and complementary to our existing and future mechanical and advanced recycling operations,” said Yvonne van der Laan, LyondellBasell executive vice president, circular and low carbon solutions. “This is an important further step toward reaching our goal to produce and market at least 2 million tonnes of recycled and renewable based polymers annually by 2030,” he added.
van der Laan said that the ‘highly motivated culture’ of APK will be an ‘excellent fit’ for LYB, at a time when there is no information on the fate of APK employees.
“We want to build on the excellent progress of APK and fully leverage its expertise of R&D, project engineering and operations teams, solidifying our position as an industry leader in sustainability,” van der Laan commented.
LYB plans to sell products manufactured using Newcycling technology under its Circulen portfolio of sustainable polymers.
"We are very pleased that we entered into an agreement with LYB, securing the future of the company," said Steve Döring, CEO of APK. "With its ambition to be a global leader in circular solutions and technologies, LYB is a perfect strategic fit that allows investments into growth opportunities ensuring that our unique solvent recycling technology can realise its full potential,” he concluded.