Mol Group and APK signed a strategic cooperation agreement which is intended to expand the Hungarian company's portfolio of recycled plastics.
Budapest/Hungary; Merseburg/Germany — As a first step in the cooperation thee group will support the completion of APK’s Merseburg plant which will serve as a pilot for the solvent-based process, called Newcycling. This process enables the recovery of high-quality materials from complex multi-layer packaging.
According to Ferenc Horvath, Mol Group’s EVP for Downstream, the company was taking steps to grow their petrochemicals business and enter knowledge intensive industries together with strategic partners. The group sees a growing demand from their customers for recycled plastics and at the same time they were also fully committed to the idea of circular economy and sustainability, Horvath added. He also said, that the petrochemicals producer was aspiring to become a leader in recycling in Central and Eastern Europe and with the agreement they were marking the first milestone. Mol togehter with APK would work on further developing the Newcycling technology and bringing it to the group's core region where the need and the potential for plastic waste recycling was significant.
Klaus Wohnig, APK’s speaker of the management board stated that the technology was reaching market maturity, which was proven in joint projects with leading players in the packaging, FMCG and plastics industry. He considers the CEE region as a very interesting market in future, since there would be a strong trend from landfill and incineration towards recycling and a truly circular plastics economy in future.
One of the cornerstones of Mol Group 2030 strategy is to expand the company’s petrochemicals value chain. As such, the company plans to invest around $ 4.5billion until the end of the next decade into petrochemical and chemical growth projects. As part of this growth strategy, the group intends to build up its recycling capabilities.