ORLEN Group develops new green business segment
The ORLEN Group is investing in environmentally-friendly projects to manage plastic waste. The agreement signed by ORLEN Unipetrol to acquire the Italian-Czech company REMAQ, a Central European leader in recycling, is an element of the strategic plan implemented by the Group. The transaction will help the ORLEN Group to achieve almost 10% of the 2030 strategic target for recycling capacity. Plastic waste will be used to make new petrochemical products for applications in the construction, automotive and packaging industries.
- Our chemical plastic recycling projects will allow us to deliver on circular economy goals and to reduce demand for oil and gas as feedstocks in petrochemical production. The acquisition of REMAQ will help the ORLEN Group to expand its mechanical recycling capabilities. We aim to effectively link all waste recycling methods and create a fully functional chain enabling local governments, waste distributors and final converters to work together efficiently. In line with the ORLEN Group’s Strategy, we target up to 400,000 tonnes of plastic and natural waste recycling capacity by 2030. This is our contribution to protecting the environment and the planet that will also drive long-term value growth for the Group - explained Daniel Obajtek, President of the PKN ORLEN Management Board.
Founded in 2004, the Italian-Czech company REMAQ trades in recycled plastics, particularly polypropylene, polyethylene and polystyrene. In 2009, the company opened a production plant on an industrial estate in Otrokovice in the Czech Republic, where it operates four modern plastic regranulation lines with a total capacity of just under 29,000 tonnes per year. REMAQ is the fastest-growing plastics recycler in the Czech Republic with a significant position in the European market. The company delivers annual revenue in excess of CZK 0.5bn (around PLN 100m). The ORLEN Group plans to close the REMAQ acquisition by the end of March 2023.
Approximately 24.5m tonnes of plastic waste is generated in Europe every year. Over a third is recycled, 42% is incinerated and 24% is landfilled, which is contrary to the circular economy model. Plastic waste is estimated to increase to 31m tonnes in 2035, which should result in recycling projects being stepped up.