LyondellBasell (LYB) is selling its equity in LMF Nord GmbH, a 50-50 joint venture with AFA Nord established in 2023.
LYB is selling the equity to AFA Nord. The partners had planned to build a 26,000 tonnes/year LDPE/LLDPE mechanical recycling plant in northern Germany by early 2025. The aim was to produce quality recycled plastic materials for use in flexible packaging to complement the existing LYB CirculenRecover range of high density polyethylene and polypropylene products.
LYB’s decision is tied to ‘challenging market conditions’, the company told Sustainable Plastics.
“LYB has agreed to sell its equity in LMF Nord GmbH, a 50-50 joint venture between LYB and AFA Nord formed in 2023, to its partner, AFA Nord. Due to the current challenging market conditions, LYB and AFA Nord will not jointly invest in a large-scale plant for recycling packaging film in Northern Germany within the expected timeframe. Instead, AFA Nord has its own plans to build a recycling plant at its existing site,” the company said.
“LYB remains committed to recycling packaging plastic waste and intends to continue evaluating future collaborations and investments as part of its strategy to build a profitable circular and low carbon solutions business across strategic world regions,” it continued.
AFA Nord’s parent company Mensing Group has established a new subsidiary, called MFR Nord, to build a 35,000 tonnes/year PE film recycling plant in Hohenwestedt, where AFA Nord is based. It plans to start operations in 2026.
The joint venture was part of LYB’s integrated hub strategy. The US-based company has made a range of recycling investments in Germany in recent years, including its MoreTec chemical recycling plant, the acquisition of plastics recycler APK, and an automotive parts recycling centre in Lich, Germany.
As European plastics recyclers continue to struggle with low recyclate prices and increased business costs, adverse market conditions affect even large players like LYB. Late last year, one of the European recyclers it invested in filled for bankruptcy. LYB owned a 50% stake in Stiphout Industries, the parent company of Dutch plastics recycler Stiphout Plastics.
In a recent interview with Sustainable Plastics, Yvonne van der Laan, executive vice president, circular and low carbon solutions at LYB, said the materials company said remains ‘fully committed’ to European plastics recycling despite a strategic review of its European assets.