Mechanical Recycling

The versatile properties of plastics make possible a plethora of products and applications that make daily life safer, more mobile, and more eco-efficient. These properties allow us to ensure more sustainable living, while the global population grows and demand for plastics increases. However, within the linear economic model, plastic products are made, used, and then discarded. Continuing with this model will lead to more plastic waste and environmental pollution, while putting pressure on the planet’s limited resources.

As a plastics producer, we are responsible for the end of the value chain as well. We aim to develop technologies to recycle the many different types of plastics as efficiently as possible, thereby promoting a circular economy. One key technology is mechanical recycling. With mechanical recycling, the plastic is cleaned, mechanically flaked, melted down, and processed into plastic granulate. In the ideal case, this material can be used to make the same products again, i.e., a detergent bottle becomes a new detergent bottle. No change is made to the chemical structure of the plastic, which is why the feedstock must be sorted properly and even split into different colors. Through Borealis, OMV operates three mechanical recycling plants: Ecoplast, mtm plastics, and a demo plant operated by a joint enterprise in Lahnstein (Germany).

Management and Due Diligence Processes

Certification

The Borealis recycling businesses are all EuCertPlast certified. The EuCertPlast certification is a European-wide certification program for companies that recycle post-consumer plastic waste.

Business Transformation

A business transformation project was launched at the established Borealis recycling businesses, mtm plastics and Ecoplast, to tackle profitability improvement areas in mechanical recycling. The product offering of mtm plastics and Ecoplast was significantly changed to target recycling solutions in the value-added packaging film applications segment and Borcycle™ compounds, for example.

2021 Actions

A key part of OMV’s circular economy strategy is the development of an advanced mechanical recycling business through Borealis. At the start of 2021, Borealis and its partners, TOMRA and Zimmermann, opened their state-of-the-art mechanical recycling demonstration plant in Lahnstein (Germany). The plant processes both rigid and flexible plastic waste from households. Unlike many current recycling plants, it will produce advanced solutions featuring a high level of purity, low odor, high product consistency, and light color fractions necessary for use in highly demanding plastic applications in industries such as automotive and consumer products. The purpose of the demonstration plant is to generate material for brand owners and converters to validate for use in their highly demanding applications. Technical success will set the groundwork for a commercial-scale advanced recycling plant.

Outlook

In the coming years, OMV will focus on the commercial ramping up of its existing circular portfolio to continuously progress toward its targets. This includes further investments in the advanced mechanical recycling facility in Lahnstein (Germany) to increase recycled material capacity.