LyondellBasell to Acquire APK AG's Recycling Technology

LyondellBasell (LYB) announced that it has signed an agreement to acquire full ownership of APK AG in Merseburg, Germany. Supported by its technology, this acquisition positions LYB to expand and develop its Circular and Low Carbon Solutions business.

Completion of the transaction is subject to customary closing conditions. LYB believes that APK's solvent-based recycling technology provides perfect compatibility with its existing mechanical and advanced recycling technologies. For this reason, the company has previously invested in it and engaged in collaboration efforts to scale the technology. By acquiring APK, LYB has secured the future of the company, which filed for bankruptcy at the end of May 2024.

"We view APK's solvent-based recycling technology as a vital contribution and complement to our existing and future mechanical and advanced recycling operations. This represents an important step toward achieving our goal of producing and marketing at least 2 million metric tons annually of recycled and renewable-based polymers by 2030," says Yvonne van der Laan, Vice President of LyondellBasell's Circular and Low Carbon Solutions business. "APK's highly motivated culture will be a perfect fit for LYB. We want to build on APK's excellent progress and solidify our position as a sector leader in sustainability by fully leveraging the expertise of our research and development, project engineering and operations teams."

APK AG CEO Steve Döring said, "We are delighted to have signed an agreement with LYB that secures the company's future." "With the goal of becoming a global leader in circular solutions and technologies, LYB is a perfect strategic fit that will enable investments in growth opportunities that will allow the full potential of our unique solvent recycling technology to be realized."

The recycling technology is a unique solvent-based type for low-density polyethylene (LDPE). LYB aims to increase the recycling of difficult-to-recycle flexible plastic waste materials, which now constitute the majority of mixed plastic waste from the consumer sector. The technology separates the different polymers in difficult-to-recycle, flexible plastic waste materials and produces recycled materials with high purity suitable for, for example, new flexible packaging for personal care products. The materials produced will be sold under the LYB Circulen portfolio.

In March 2023, LYB unveiled an important new corporate strategy aimed at making LYB an industry leader in sustainability. LYB created ambitious plans to provide access to best-in-class innovative and differentiated technologies and established a dedicated Circular and Low Carbon Solutions (CLCS) business as a core element of its new strategy. CLCS has begun making significant investments in plastic waste sorting and recycling operations in Europe, the United States and Asia.