Hungary Mol enters into recycled plastic compounding by acquisition
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.