LyondellBasell acquires APK, Silgan finalizes purchase of Weener Plastics

GERMANY – LyondellBasell (LYB), a global chemical company, has acquired APK, a solvent-based recycling company based in Merseburg, Germany.

This acquisition, initially agreed upon in August, will see APK fully integrated into LYB’s operations.

The strategic move strengthens LYB’s ability to produce high-purity materials for flexible packaging, particularly in personal care products.

According to Yvonne van der Laan, executive vice president of circular and low-carbon solutions at LYB, the acquisition represents an important step toward achieving circularity in plastic waste management.

“We are excited to complete this acquisition, securing the future of over a hundred employees and providing another solution to meet our customers’ circularity goals,” van der Laan said.

“This technology complements our existing recycling portfolio and helps us advance toward a circular economy.”

The acquisition follows LYB’s recent investment in its first industrial-scale MoReTec plant, a catalytic-advanced recycling facility in Wesseling, Germany.

This underscores the company’s commitment to sustainable solutions as demand for recycling capabilities grows.

APK’s former director of corporate development and integration lead, Maik Pusch, expressed optimism about the partnership: “Joining LYB brings great expertise and financial support, ensuring our technology reaches its full potential.”

The acquisition enhances LYB’s ability to recycle low-density polyethylene (LDPE), which is a major component of flexible plastic waste.

The recycled materials will be marketed under LYB’s Circulen brand, reinforcing the company’s focus on sustainable packaging.

Silgan finalizes Weener Plastics acquisition

In a parallel development, Silgan, a US-based supplier of sustainable rigid packaging solutions, has finalized its €838 million (US$908m) acquisition of Weener Plastics, a Netherlands-based company specializing in dispensing solutions for personal care, food, and healthcare sectors. The acquisition was initially agreed upon in July.

Weener Plastics, headquartered in Ede, operates 19 facilities across Europe and the Americas and employs around 4,000 people.

The company is renowned for its proprietary manufacturing technologies, including clean room capabilities, crucial in producing high-quality packaging for its clients.

To finance the acquisition, Silgan used borrowings under its senior secured credit facility, including an incremental-term loan of €700 million (US$760.07m).

The acquisition is expected to generate approximately €20 million (US$21.72m) cost synergies over the next 18 months, contributing to Silgan’s financial performance.

Silgan projects that the acquisition will positively impact adjusted earnings per share in 2024, with full integration potentially leading to a 10% earnings increase.

Headquartered in Stamford, Connecticut, Silgan is a leading supplier of dispensing and specialty closures, metal containers, and custom containers for various consumer goods.

The company operates 124 manufacturing facilities across North America, South America, Europe, and Asia, serving food, beverage, and personal care industries.

This acquisition solidifies Silgan’s position in the global packaging market, further enhancing its capabilities and expanding its reach in key sectors.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE