Daniel Pelosi 2023-07-07 21:16:54
Borealis AG has acquired Rialti SpA (Via Varese, Italy). The cost of the transaction has not been disclosed. Rialti has 50,000 metric tons per year in nameplate capacity for recycled polypropylene (R-PP) and produces blow molding and extrusion grades of material using postindustrial and postconsumer waste. The company’s material is intended for use in a diverse range of derivative industries, including the automotive, appliance and construction sectors.
The acquisition adds to a growing list of investments in the European recycled plastics industry, despite recent bearishness in market fundamentals. LyondellBasell Industries NV has been responsible for much of this M&A activity, recently announcing that it would acquire the stake in QCP Holding BV (Urmond, Netherlands) of its joint-venture partner Suez SA, and buying the Mepol Group (Treviso, Italy), which produces recycled hard plastic pellets.
In addition, TotalEnergies SE completed the acquisition of recycler Iber Resinas SL (Estivella, Spain) in May.
These investments speak to the potential profitability of the European recycled plastics industry, despite recent weak fundamentals. Europe’s R-PP market has seen consistently weak demand across the year, driven by competitively priced virgin material and inflationary pressure on downstream markets.
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