In a significant move towards enhancing its mechanical recycling capabilities, Borealis has successfully completed the acquisition of Integra Plastics AD, a leading Bulgarian mechanical recycler known for its specialization in polyolefins. Announced initially on November 29, 2023, this acquisition marks a pivotal step in Borealis's strategy to increase its sustainability and recycling efforts.
Integra Plastics, situated in Elin Pelin, central western Bulgaria, is recognized for its production of high-quality post-consumer recycled Low-Density Polyethylene (LDPE), High-Density Polyethylene (HDPE), and Polypropylene (PP) granules. The company boasts a substantial annual production capacity of 30,000 tonnes, contributing significantly to the recycling ecosystem.
With this acquisition, Borealis aims to augment its recycling capacity by over 20,000 tonnes annually, targeting applications that demand high-quality recycled materials. Craig Arnold, Borealis's Executive Vice President for Polyolefins, Circular Economy Solutions, and Innovation & Technology, emphasized the acquisition's role in bolstering Borealis's mechanical recycling ambitions and aiding customers in achieving their sustainability goals.
This strategic acquisition follows closely on the heels of Borealis's purchase of Rialiti S.p.A, a Polypropylene compounder of recyclates located in the Varese area of Italy, in November 2023. These acquisitions collectively underscore Borealis's commitment to leading the charge towards a more sustainable and circular economy in the plastics industry.
Despite facing a challenging year in 2023 with a negative operating profit influenced by adverse market conditions, inventory impacts, and a broader economic downturn characterized by inflation and cost-of-living crises, Borealis continues to focus on strategic growth areas such as recycling to navigate through the challenging environment and strengthen its market position in the circular economy.