ROMANIA – European recycling group GreenGroup has completed the acquisition of Lithuanian low-density polyethylene (LDPE) recycling company UAB Ecso.
The acquisition marks GreenGroup’s entry into the polyolefin recycling market and creates the platform for further expansion in this sector across the CEE region.
Founded in 2009, UAB Ecso claims to be one of Lithuania’s leading polyethylene recyclers, with an annual film waste processing capacity of 20,000 tons.
The company converts film waste from household and industrial post-consumption into recycled LDPE granules.
Meanwhile, GreenGroup is an integrated recycling group that specializes in polyethene terephthalate recycling and the production of polyester staple fiber.
It also offers electronics recycling, glass waste recycling, industrial waste management services and extended producer responsibly (EPR) for packaging waste.
The acquisition is expected to help the group expand in the LDPE sector across Central and Eastern Europe (CEE).
Over the coming years, GreenGroup plans to invest between €150 million (US$154.11 million) and €200 million (US$205.48 million) to strengthen its position as an integrated recycling group in the CEE region.
GreenGroup Board Chairman Constantin Damov said: “The Lithuanian model proved to be a local success for closed-loop resourcing of plastic waste, aligned with the circular economy objectives.
“With this investment, we are positioning the Group as the first line of defense for limiting the environmental impact of single-use plastics – a group fitting both PET and polyolefins.
Our objective is to scale this model in the region and other countries as well.”
Abris Romania partner and head Adrian Stănculescu said: “This latest acquisition consolidates GreenGroup’s recycling activities over the past 20 years and is a decisive step in the Group’s strategy to become a key player in polyolefins recycling in the region.
“Furthermore, it is a strategic investment that reinforces the Group’s commitment to sustainability and to tackling the most pressing environmental issues, such as plastic pollution and reducing carbon footprints.”
The deal with UAB Ecso comes nearly a month after GreenGroup acquired SIGAD, a Romanian company that develops environmental reporting software.
In April this year, GreenGroup also announced it has raised €127 million (US$130.48 million) to finance its growth plans and support the surging demand for recycling and sustainable products in the region.
Liked this article? Subscribe to our regular email newsletters with the latest news insights from Africa and the World’s packaging and printing industry. SUBSCRIBE HERE.