Investments: Krones Recycling spun off as independent company; Polystyvert secures US$16 mn in latest funding round for PS recycling facility

Recently, Germany’s Krones Recycling GmbH, under the management of Michael Gotsche, commenced business operations with headquarters in Flensburg. The newly founded company takes over all activities relating to plastics recycling, but continues to utilise Krones' global production, sales and service network. The spin-off emphasises the growing significance of the recycling sector and the important role that Krones Recycling plays in achieving Krones' sustainability goals.

The demand for recycled plastics is increasing rapidly worldwide: consumer awareness is growing, companies are setting themselves ever more ambitious sustainability targets and recycling requirements from international governments are also increasing. As a company with almost 30 years of experience in plastics processing and almost 25 years in the field of recycling, Krones has now taken the pioneering decision to pool its recycling expertise in the independent subsidiary Krones Recycling GmbH from July 2024.

In addition, thanks to leaner processes and structures, the new company will be able to respond more quickly to changes in the constantly changing recycling market, says Michael Gotsche, Managing Director of Krones Recycling GmbH: "The newly founded company offers us the necessary flexibility and scope for action to be able to implement decisions in a customer-oriented, fast and optimised manner."

For all its independence, however, the name Krones Recycling not only symbolises the focus on plant engineering in the field of recycling, it also reflects the close connection to the Krones Group.

A large number of plastics such as PET, PE, PP and PS are already being processed on Krones Recycling's lines worldwide. "Our vision is to make a daily contribution to a global circular economy for all plastics by offering our customers sustainable and profitable recycling solutions," says Gotsche, describing the overarching business objective. There is also a clear marker in relation to Krones' sustainability targets: at least 30 per cent of the plastics processed on Krones lines are to be returned to the cycle as a recycled resource.

Consequently, Krones Recycling will continue to conduct intensive research into new innovations at its in-house Recycling Technology Centre. There, tests on the recyclability of various plastics, including adhesives and colours, can also be carried out under real conditions on behalf of customers.

In other news Canadian recycling firm Polystyvert has announced the closing of a first tranche of a Series B funding for over US$16 million. This investment represents another step for the company towards the construction of its first commercial plant in Montreal, Québec, dedicated to recycling highly contaminated polystyrene waste, expected to be operational in 2026.

With funding from European and North American investors, Polystyvert will further solidify its position as a leader in the field of styrenic plastics circularity, thanks to its patented dissolution and purification technology. Other investors will participate in the second tranche of this financing to enable the Series B round to raise up to US$30 million.

Polystyvert’s investors in the Series B round who are supporting the company include Infinity Recycling that led the round, followed by SWEN Blue Ocean, and Earth Foundry, an existing shareholder.

With an increasingly stringent environmental regulatory framework worldwide and a growing demand for sustainable solutions in plastic recycling, this Series B fundraising arrives at a strategic moment for Polystyvert. It lays the ground for the industrial-scale commercialisation of its technology already proven at the pilot and demonstration unit scale.

Remaining true to its roots as a technological innovator, part of this funding will also be dedicated to further diversify Polystyvert’s intellectual property (IP) portfolio, which already includes over 40 patents with worldwide coverage.

“Polystyvert’s game-changing recycling process upcycles contaminated plastic waste into premium materials. This commitment to scaling advanced recycling technologies is crucial in tackling the plastic waste crisis and fostering sustainable circular market growth,” declared Jan-Willem Muller, Managing Partner at Infinity Recycling.

“Polystyvert has developed a unique technology to recycle styrenic polymers. It combines the best of mechanical and chemical recycling with low costs, small-scale units, ability to treat contaminated feedstock and virgin-quality end products. This technology will create new markets for styrenic polymer wastes and help divert them from nature and landfill,” declared Olivier Raybaud, Managing Director at SWEN Blue Ocean.

Following the closing of the first tranche of the funding, the Series B round will remain open for a second tranche that is expected to close within the next three months, for a total amount from both tranches of up to US$30 million.

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