Hungarian energy company MOL Group has agreed to acquire German recycled plastic compounder Aurora as part of its long-term strategy to expand its petrochemicals portfolio.
The transaction is subject to the relevant merger control approvals.
With production plants close to automotive manufacturing and plastics conversion clusters in Baden-Württemberg, Germany, Aurora is a medium-size company largely manufacturing engineering plastics and polypropylene recyclate-based compounds.
Headquartered in Neuenstein, an hour to the north of Stuttgart, Aurora has established a lean closed loop concept which includes collection, regrinding and compounding of post-industrial plastic waste.
The company supplies the compounds to the automotive sector and other industries.
“With this investment, MOL will be able to offer a wide range of high-quality polyamide, polypropylene and other recyclate-based compounds, complementing its existing portfolio of virgin polypropylene and polyethylene,” MOL said in a statement 15 April.
With Aurora’s loop logistic system, MOL expects to help customers reach a higher content of recycled material in their end products.
“This partnership will enable us to grow and add value to our petrochemical business as well as to increase our footprint in the automotive supplier market,” said Ferenc Horvath, MOL Group executive vice president of downstream.
According to Horvath, Aurora will continue operating as an independent compounder post-acquisition.
“As part of MOL Group… Aurora will continue to expand its expertise in the processing of engineering plastics… MOL's many years of experience will enable us to work more intensively to protect our raw material resources and relieve the burden on the environment,” said Gerhard Schweinle, founder and member of the Management Board of Aurora: „
Unveiled in 2017, MOL’s 2030 strategy envisages a $4.5bn investment by the group in expanding its petrochemicals value chain over the next decade.
Compounding and recycling are among the key areas defined in MOL’s 2030 strategy.
Both Aurora and MOL have identified the automotive industry as a strategic sector with a growing demand for recycled materials.