Expands Company's Technology Portfolio and Circular Hub
- Acquisition increases LYB Circular and Low Carbon Solutions Business and diversification of innovative recycling technologies
- Transaction encompasses existing assets and planned growth projects
ROTTERDAM, Netherlands, Aug. 22, 2024 /PRNewswire/ -- LyondellBasell (LYB) today announced it entered into an agreement to acquire full ownership of APK AG in Merseburg, Germany. Enabled by its technology, the acquisition positions LYB to grow and upgrade its Circular and Low Carbon Solutions business.
Closing of the transaction is subject to customary closing conditions. LYB believes APK's solvent-based recycling technology is a perfect fit with its already existing mechanical and advanced recycling technologies. Therefore, it already invested in the company in the past and made collaborative efforts on bringing the technology to scale. By acquiring APK, LYB secures the future of the company after it entered into insolvency at the end of May 2024.
"We see APK's solvent based recycling technology as a vital addition and complementary to our existing and future mechanical and advanced recycling operations. This is an important further step toward reaching our goal to produce and market at least 2 million metric tons of recycled and renewable based polymers annually by 2030," says Yvonne van der Laan, LyondellBasell Executive Vice President, Circular and Low Carbon Solutions. "The highly motivated culture of APK will be an excellent fit for LYB. We want to build on the excellent progress of APK and fully leverage its expertise of R&D, project engineering and operations teams, solidifying our position as an industry leader in sustainability."
"We are very pleased that we entered into an agreement with LYB, securing the future of the company," says Steve Döring, CEO of APK AG. "With its ambition to be a global leader in circular solutions and technologies, LYB is a perfect strategic fit that allows investments into growth opportunities ensuring that our unique solvent recycling technology can realize its full potential."
The recycling technology is a unique solvent-based kind for low density polyethylene (LDPE). LYB aims to increase the recycling of hard-to-recycle flexible plastic waste materials – which today make up the majority of mixed plastic waste from the consumer sector. The technology separates the different polymers of hard to recycle, flexible plastic waste materials and produces recycled materials with a high degree of purity suitable for new flexible packaging of, for example, personal care products. The materials produced will be sold under the LYB Circulen portfolio.
In March 2023 LYB revealed its pivotal, new company strategy aiming at establishing LYB as an industry leader in sustainability. LYB has formulated ambitious plans to create access to best-in-class innovative and differentiated technologies, and as a key element of its new strategy formed a dedicated Circular & Low Carbon Solutions (CLCS) business. CLCS has started to make substantial investments upstream in plastic-waste sorting and recycling operations in Europe, the United States and Asia.
About LyondellBasell
We are LyondellBasell (NYSE:LYB) ― a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.
Forward-Looking Statements
The statements in this release relating to matters that are not historical facts are forward-looking statements. Actual results could differ materially based on factors including, but not limited to, our ability to meet our sustainability goals, including the ability to increase production of recycled and renewable-based polymers to meet our targets and forecasts and our ability to procure feedstock to meet these goals. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2023, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
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SOURCE LyondellBasell