One of the world's largest plastics, chemicals, and refining companies, LyondellBasell Industries Holdings B.V. (Lyondell) and SUEZ, a global leader in smart, sustainable resource management, has announced the successful completion of a transaction making each company a 50/50 joint venture partner in Quality Circular Polymers (QCP), a Dutch plastics recycling company.
Located in Sittard-Geleen, the Netherlands the Quality Circular Polymers plant will transform used plastic material into virgin-replacement quality polyethylene (PE) and polypropylene (PP) materials. The plant is capable of converting consumer waste into 25 000 tonnes of PP and high-density polyethylene (HDPE) with an objective of 35 000 tonnes later in 2018 and 50 000 tonnes by 2020.
The production capacity of the plant will address a growing need for improving the sustainability profile of high-quality plastics in Europe.
Leverage synergies
The joint business will leverage the two partners’ strengths. SUEZ will utilize its leading-edge technology solutions to improve the identification, separation, and preparation of materials to be used as feedstock at QCP.
LyondellBasell will apply its long-standing leadership in innovative plastic production technology, vast experience in product development, and deep knowledge of important end markets such as consumer goods, where the company has a strong presence.
LyondellBasell will add QCP’s recycled products to its range of existing PE and PP materials to help meet increasing customer demand and in line with the EU’s Plastics Strategy.
The EU has a 55 percent recycling rate target by 2025 – almost 50 million tonnes of plastic waste are produced every year in Europe, of which around 25 percent is recycled.
Partnering with SUEZ allows us to contribute to the circular economy in a way that no plastics company has before. For several years, we have seen increased demand for recycled and reused plastics, especially in Europe. With QCP, we have combined our respective expertise with SUEZ to create an innovative system that can be scaled as the circular economy grows, said Bob Patel, CEO, LyondellBasell.
Plastics recycling is also a key market for SUEZ, which currently operates nine dedicated facilities in Europe. In 2017, SUEZ processed 400 000 tonnes of plastic waste and produced 150 000 tonnes of new plastic resources.
The circular economy will increasingly develop into a critical part of the plastic value chain. Moving forward, we will bear in mind the economics of operating our businesses must be balanced with environmental awareness. As we move towards becoming value players in the circular economy, we will continue to seek opportunities for future growth, said SUEZ CEO Jean-Louis Chaussade, CEO, SUEZ.
The company has set an objective of increasing its processing capacity by 50 percent to 600 000 tonnes in 2020.
