SERBIA – Greiner Packaging is acquiring Serbia-based producer of PET flakes Alwag, broadening its business portfolio and adding the first recycling company to the group.
Upon completion of the deal, Alwag will be renamed Greiner Recycling, a move that will see Greiner expand its business model by entering the business of reprocessing recyclable materials.
The acquisition of Alwag is a direct reflection of Greiner Packaging’s exhaustive efforts to boost sustainability.
In purchasing the PET flake producer, Greiner Packaging is pushing ahead with the expansion drive it has embarked on in recent years as well as resolutely pursuing its extensive circular economy goals.
The Alwag takeover means Greiner Packaging now has three locations in Serbia: one recycling company and two manufacturing bases.
“PET is currently the only mechanically recycled material that can be used for food applications. We are strong believers in the potential of PET and by expanding our expertise, we are actively committed to using this material effectively,” explains Manfred Stanek, CEO of Greiner Packaging.
“As we work toward our [environmental] sustainability goals, which we pursue consistently through all the business decisions we make, we naturally pay special attention to the possible creation of other rPET streams in addition to the bottle-to-bottle stream.”
Greiner Packaging says that one of its objectives is to maximize the use of recycled material when manufacturing its products.
As the first recycling company in the group, Greiner Recycling d.o.o. will apparently help to secure material streams that will later be converted by Greiner Packaging.
According to the company, this form of backward integration will ensure a dependable supply of raw materials and enable Greiner Packaging to offer customers reliability going forward.
Greiner Packaging adds that the acquisition is also key to expanding recycling as an integral part of the company’s business model.
ALWAG says it currently supplies its material to customers throughout Europe. Following consultations with its partners and a planned expansion of recycling capacity at its site, PET flakes will reportedly be gradually made available for Greiner Packaging’s applications.
ALWAG customers will continue to benefit from a reliable supply of their usual quantities of recycled material, the company claims.
Stojan Dangubić, former Director of ALWAG and Executive Director of Aling-Conel, said: “The recycling of PET packaging and bottles is a project we began 10 years ago as pioneers in Serbia.
“This new ALWAG product is now no longer being developed by us, but by new owners whom we have carefully selected and have full confidence in. This step makes sense for everyone involved and will take the company’s success to even greater heights in the future.”
Going forward, Greiner Packaging says it will broaden its offering through vertical integration and the in-depth knowledge it is obtaining in the recycling sector.
The company also intends to continue initiatives to increase the use of rPP and rPS, with the aim of providing sustainable material solutions that are tailored to the customer.
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