LYB completes acquisition of solvent-based recycling company APK
LyondellBasell (LYB) has completed the acquisition of APK AG, a solvent-based recycling company in Merseburg, Germany. This acquisition adds a unique recycling technology to LYB's portfolio, focusing on low density polyethylene (LDPE). LYB plans to fully integrate APK, securing jobs for over 100 employees and aims to develop the technology further to build commercial plants in the future.
The acquisition aligns with LYB's strategy to become a sustainability leader in the chemical industry. It complements LYB's existing mechanical and proprietary advanced recycling technologies, addressing the rising demand for sustainable solutions. The recycled materials will be sold under LYB's Circulen portfolio, targeting applications like flexible packaging for personal care products.
This move follows LYB's recent foundation stone laying of its first industrial-scale MoReTec plant for catalytic advanced recycling in Wesseling. LYB's circular and low carbon solutions (CLCS) business is making substantial investments in plastic-waste sorting and recycling operations across Europe, the United States, and Asia.
- Acquisition of APK AG adds unique solvent-based recycling technology for LDPE to LYB's portfolio
- Plans to develop the technology further and build commercial plants, potentially increasing future revenue
- Secures jobs for over 100 employees, adding expertise to LYB's workforce
- Aligns with LYB's strategy to become a sustainability leader in the chemical industry
- Expands LYB's Circulen portfolio, addressing customer demand for sustainable solutions
- None.
Insights
The acquisition of APK AG marks a significant step in LyondellBasell's sustainability strategy. By integrating APK's solvent-based recycling technology for LDPE, LYB is expanding its circular economy capabilities, particularly in hard-to-recycle flexible plastics. This move aligns with the growing demand for sustainable solutions in the chemical industry.
The acquisition complements LYB's existing mechanical and advanced recycling technologies, creating a more comprehensive portfolio. This diversification is important as it allows LYB to address various types of plastic waste, potentially increasing overall recycling rates and reducing environmental impact.
The integration of APK's 100+ employees and their expertise will likely accelerate the development and scaling of this technology. LYB's intention to build commercial plants using this technology suggests a long-term commitment to expanding its sustainable product offerings under the Circulen portfolio.
This acquisition, coupled with LYB's recent MoReTec plant initiative, demonstrates a concrete implementation of their new strategy focused on sustainability leadership. It positions LYB to better meet the circularity ambitions of customers and brand owners, potentially leading to increased market share in the growing sustainable materials sector.
LyondellBasell's acquisition of APK AG is a strategic move that could positively impact the company's long-term financial performance. While the acquisition cost wasn't disclosed, the investment aligns with LYB's pivot towards sustainability, which is increasingly driving consumer and regulatory demands in the chemical industry.
The acquisition provides LYB with a new revenue stream through high-purity recycled materials, particularly targeting the lucrative flexible packaging market for personal care products. This diversification could help buffer against volatility in traditional petrochemical markets.
Investors should note that significant capital expenditure may be required to scale up APK's technology to commercial levels. However, this investment could yield substantial returns as demand for recycled plastics grows. The integration of APK's technology into LYB's Circulen portfolio could enhance product differentiation and potentially command premium pricing.
LYB's aggressive moves in recycling technologies, including this acquisition and the MoReTec plant, position the company as a frontrunner in the circular economy. This could lead to improved brand value, customer loyalty and potentially higher margins in the long term, supporting sustainable growth and shareholder value.
Company welcomes additional recycling technology to its portfolio
- Ambition to further develop solvent-based recycling technology and bring to commercial scale
- Company secures future of employees and fosters expertise with full integration
- Plant to be transformed into post-consumer plastic waste recycling
ROTTERDAM, The Netherlands, Oct. 17, 2024 (GLOBE NEWSWIRE) -- LyondellBasell (LYB) today announced it became full owner of APK AG in Merseburg, Germany. APK will be fully integrated and continue as part of LYB, a sustainability leader in the chemical industry. It is LYB’s ambition to further develop the company’s unique solvent-based technology for low density polyethylene (LDPE) and build commercial plants in the future. This will enable LYB to produce new high-purity materials that can be used in applications like flexible packaging for personal care products, meeting the demands of customers and brand owners.
"We are excited to complete the acquisition of solvent-based recycling technology company APK, securing the future of more than a hundred employees and adding another solution for our customers to meet their circularity ambitions and goals,” says Yvonne van der Laan, LYB executive vice president of circular and low carbon solutions. “This technology complements our excellent mechanical recycling technology, as well as our proprietary advanced recycling technology. We see this as a crucial addition to our portfolio on our journey to a circular economy, helping end plastic waste.”
The closing of the APK acquisition is another proof point of how LYB creates solutions for a better tomorrow, following the foundation stone laying of its first industrial-scale MoReTec plant for catalytic advanced recycling in Wesseling on September 19 with German Chancellor Scholz. LYB aims to address rising demand for more sustainable solutions from customers and society.
“We are incredibly pleased to be part of LYB. LYB offers great expertise, career opportunities and financial strength to lift the company to the next level,” says Maik Pusch, former director of corporate development at APK AG and integration lead. “I am convinced this combination will help our technology reach its full potential, as well as securing a promising future for our employees.”
The recycling technology is a unique solvent-based kind for low density polyethylene (LDPE). LYB aims to increase the recycling of hard-to-recycle flexible plastic waste materials – which today make up most of the mixed plastic waste from the consumer sector. The materials produced will be sold under LYB’s Circulen portfolio.
In March 2023 LYB revealed its pivotal new company strategy aimed at establishing LYB as an industry leader in sustainability. LYB has formulated ambitious plans to create access to best-in-class innovative and differentiated technologies as a key element of its new strategy and formed a dedicated circular and low carbon solutions (CLCS) business. CLCS has started to make substantial investments upstream in plastic-waste sorting and recycling operations in Europe, the United States and Asia.
About LyondellBasell
We are LyondellBasell (NYSE: LYB) ― a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors, and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.
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Forward-Looking Statements
The statements in this release relating to matters that are not historical facts are forward-looking statements. Actual results could differ materially based on factors including, but not limited to, our ability to meet our sustainability goals, including our ability to successfully integrate the operations and operate the facilities; our ability to build a profitable Circular & Low Carbon Solutions business; and the ability to increase production of recycled and renewable-based polymers to meet our targets and forecasts and our ability to procure feedstock to meet these goals. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2023, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission’s website at www.sec.gov. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
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