Hungarian energy group Mol has announced on Monday that it has signed a sales-purchase agreement to acquire Aurora, a recycled plastic compounder with production plants located nearby automotive manufacturing and plastics conversion clusters in Baden-Württemberg, Germany.
Aurora is a medium-size German company, headquartered in Neuenstein, with a unique and lean closed loop concept assuming collection of post-industrial plastic waste, regrinding and compounding, ultimately supplying the automotive industry and other industries. The company’s portfolio largely consists of engineering plastics and polypropylene recyclate-based compounds.
Mol said in a statement that with this investment, it will be able to offer a wide range of high-quality polyamide, polypropylene and other recyclate-based compounds, complementing its existing portfolio of virgin polypropylene and polyethylene. Leveraging on Aurora’s know how and loop logistic system, Mol will enable the customers to reach higher content of recycled material in their end products, in an efficient way, it added.
In line with our Mol 2030 strategy, we have reached yet another milestone on our transformational journey to become the leading chemical player in the CEE region. This partnership will enable us to grow and add value to our petrochemical business as well as to increase our footprint in the automotive supplier market
, commented Ferenc Horvath, Mol Group Executive Vice President of Downstream.
One of the cornerstones of Mol Group 2030 strategy is to expand the company’s petrochemicals value chain. As such, Mol plans to invest around USD 4.5 billion until the end of the next decade into petrochemical and chemical growth projects.
The importance of the petchem business is also attested by the fact that in one of the largest investment projects in Hungary, Mol is to spend EUR 1.2 billion on its Polyol Project
The new plant is going to employ 3,000 people at peak capacity by 2020, and it will have nearly 200 employees once construction is done, Mol Chairman-CEO Zsolt Hernádi told journalists after the group’s annual general meeting last Friday.
Compounding and recycling are among the key areas defined in Mol’s 2030 Strategy and the automotive industry is a strategic sector, where both Mol and Aurora recognize a growing demand for recycled materials.
Mol and German recycling technology company APK signed a strategic co-operation agreement in Merseburg last August, aspiring "to become leaders in recycling in Central and Eastern Europe
." They plan to carry out several projects together in CEE.
"We aspire to become leaders in recycling in Central and Eastern Europe and with today’s agreement we are marking the first milestone on this journey," said Horváth at that time.
The transaction with Aurora is subject to the relevant merger control approvals.
Aurora Group consists of Aurora Kunststoffe GmbH, Aurora Kunststoffe VS GmbH and Aurora Kunststoffe Walldürn GmbH. Aurora Kunststoffe GmbH, founded in 2009, is a family-run, medium-sized company headquartered in Neuenstein (Germany) focusing on the production of high-quality technical plastic compounds. The company exclusively recycles single-variety industrial plastic residues, which are processed into plastic grinding materials, granulates and compounds in a resource- and environment-friendly process at its headquarters as well as at its two grinding centers in Walldürn and Villingen-Schwenningen. The product range includes materials such as polyamide PA 6, PA 6.6, PA 11, PA 12, POM, PP, PC and PC-ABS, which are supplied to customers in the automotive, furniture, electrical, construction and machine industries. The unique Aurora Lean Logistics concept consists of its own box concept for the collection of unmixed plastics, which gives Aurora extensive access to high-quality secondary raw materials. In the beginning of 2019, a new state-of-the-art compounding facility was completed in Neuenstein, doubling production capacity compared to the previous year up to 15,000 tonnes per year.