TOMRA Plans for EUR 50-60 million investment in plastic feedstock sorting in Germany

Specifications:

Name:

TOMRA Plans for EUR 50-60 million investment in plastic feedstock sorting in Germany

Location:

Germany

Company:

TOMRA

Estimated Cost:

EUR 50-60 million

Source:

https://www.tomra.com/

Introduction:

TOMRA announced that the Board of Directors has made a positive investment decision for the construction of a sorting facility for post-consumer plastic material.

Features:

TOMRA seeks to enable closing the quantity and quality gaps in plastic recycling by producing high quality plastic fractions out of plastic waste that is typically lost to incineration and landfill. The output material can be used by recyclers to produce flakes and pellets for applications such as packaging material.

TOMRA will initiate an investment of EUR 50-60 million in building a mid-scale plant in Germany. The plant is expected to be operational between 2024 and 2025 and have a yearly capacity of 80 000 tons. The plant will be built in an existing facility which will be rented on a long-term basis. The capital investment consists primarily of machinery and equipment.

TOMRA will source pre-sorted mixed post-consumer plastic material otherwise lost to landfill and incineration and upgrade it via a splitting and grading process at the TOMRA facility. The output will consist of over 10 different polymer fractions, both flexible and rigid plastics, which will be sold to recyclers to be used in mechanical and chemical recycling processes. We target profitability levels comparable with the rest of the business and capital return levels in the low double digits given the size of the facility being mid-scale.