Global chemical industry company LyondellBasell (LYB) has announced an agreement to acquire full ownership of APK AG in Merseburg, Germany.
The deal will enable LYB to expand and upgrade its Circular and Low Carbon Solutions (CLCS) business.
With this acquisition, LYB expects to integrate APK's solvent-based recycling technology with its existing mechanical and advanced recycling operations.
The company had already invested in APK and collaborate to scale the technology.
The transaction will secure the future of APK following its entry into insolvency at the end of May 2024.
The deal is subject to customary closing conditions.
LyondellBasell CLCS executive vice-president Yvonne van der Laan said: "We see APK's solvent-based recycling technology as a vital addition and complementary to our existing and future mechanical and advanced recycling operations.
"This is an important further step toward reaching our goal to produce and market at least two million metric tonnes of recycled and renewable-based polymers annually by 2030.
"The highly motivated culture of APK will be an excellent fit for LYB. We want to build on the excellent progress of APK and fully leverage its expertise of R&D [research and development], project engineering and operations teams, solidifying our position as an industry leader in sustainability."
APK's solvent-based recycling technology focuses on low-density polyethylene.
This technology can separate different polymers from complex waste materials, producing high-purity recycled materials suitable for new flexible packaging such as personal care products.
These materials will be sold under the LYB Circulen portfolio.
In March 2023, LYB unveiled a pivotal new company strategy to establish itself as a leader in sustainability.
The strategy includes substantial investments in plastic-waste sorting and recycling operations across Europe, the US, and Asia, as part of its newly formed CLCS business.
In February this year, LyondellBasell announced the acquisition of mechanical recycling assets in California, US, from recycling and waste management service provider, PreZero.
