Chemical company LyondellBasell (LYB) has acquired a minority stake in Source One, a Leiferde, Germany-based plastic waste sourcing and engineering company.

Source develops technical solutions for hard-to-recycle post-consumer plastic waste.

The company has been implementing circular economy solutions, waste management, and recycling projects for producers, retailers, brand manufacturers, and others in more than 20 countries.

With this investment, LYB will have access to Source's engineering and plastic waste-sourcing services.

Furthermore, it also sets up a relationship with extended producer responsibility (EPR) service provider Landbell, which will provide plastic packaging waste volumes for the advanced recycling operations of LYB.

LYB claimed that this relationship with the EPR service provider supports its commitment to helping brand owners close the loop for plastic packaging.

Following the deal, both LYB and Landbell have become shareholders in Source.

The financial terms of the transaction have not been disclosed.

LYB Circular and Low Carbon Solutions executive vice-president Yvonne van der Laan said: "We are committed to support the growing demand of our customers for circular solutions.

"With the investment in Source One we are taking another important step to secure access to plastic waste for our recycling activities and to strengthen our Circulen product portfolio of material made from recyclable or renewable resources.”

23 Oaks Investments, which formed the joint venture Source One Plastics with LYB in 2022, will hold 50% of the shares in Source.

23 Oaks Investments owner Kai Hoyer said: “Thanks to our relationship with LYB and Landbell, we are able to optimally position Source One and successfully implement our growth strategy.

“Together, we are developing sustainable and technically innovative solutions for the future of the plastics processing industry.”