LyondellBasell has agreed to purchase a 50% stake in Netherlands-based plastics recycling firm Quality Circular Polymers (QCP).
The remaining 50% stake in the plastics recycling firm will be owned by French water and waste management firm Suez.
Established in 2014, QCP owns facility in Sittard-Geleen near Maastricht, which can convert consumer waste into 35,000 tons of polypropylene (PP) and high-density polyethylene (HDPE) per year.
The PP and HDPE products compounds from circular polymers, which can be used in applications such as crates and boxes, bottles and cans.
Once the deal concludes, LyondellBasell will sell QCP materials to the customers. The deal is expected to secure regulatory approval by the end of this year.
LyondellBasell CEO Bob Patel and SUEZ CEO Jean-Louis Chaussade jointly said: "As the circular economy increases in prominence and importance, we believe that demand for recycled materials will continue to grow.
“This acquisition combines LyondellBasell's European market presence and technical capabilities with Suez’s ability to collect and recover waste into new materials. We believe that this new venture will provide a strategic platform for future sustainable growth."
In September 2016, LyondellBasell announced plans to build new HDPE plant in La Porte, Texas, US.
Featuring LyondellBasell's Hyperzone PE technology, the facility is being used to produce ethylene, propylene, linear low-density polyethylene (LLDPE) and low-density polyethylene (LDPE).
The LLDPE, LDPE and HDPE are thermoplastics used to manufacture plastic products including bottles, bags, containers, toys, food packaging, healthcare articles, automotive applications and industrial packaging.
