TOMRA expands digital capabilities with acquisition of c-trace

GERMANY – TOMRA has bolstered its digital waste management capabilities by acquiring an 80% stake in c-trace, a German company specializing in innovative software and hardware solutions.

The move aligns with TOMRA’s strategy to enhance digitalization across its recycling value chain and capitalize on the growing demand for efficient, AI-driven waste management technologies.

c-trace’s solutions integrate software and hardware modules to streamline waste management operations, addressing inefficiencies while helping municipalities and industries comply with stricter environmental regulations.

TOMRA says the acquisition will immediately enhance profitability and contribute to strong capital returns.

TOMRA’s acquisition includes an option to purchase the remaining 20% of c-trace shares, currently held by its founders, within two years.

Adding c-trace is expected to support TOMRA’s objectives of achieving profitable growth, diversifying revenue streams, and broadening its global market reach.

With around 120 employees and a strong focus on its home market of Germany, c-trace has demonstrated impressive growth, achieving over 15% annual revenue increases in recent years. Its revenue for the past twelve months reached €21 million, with a 23% EBIT margin (adjusted).

“TOMRA and c-trace together can drive innovation and open up new market opportunities,” said Tove Andersen, TOMRA’s President and CEO.

“Our priority is to leverage TOMRA’s global presence to expand c-trace’s international reach, ultimately increasing recycling and collection rates by transforming waste into valuable resources.”

Complementary investments in AI and technology

Earlier this year, TOMRA acquired a 25% stake in PolyPerception, an AI-focused start-up specializing in waste flow monitoring.

This collaboration began in late 2022 and reflects TOMRA’s broader commitment to revolutionizing resource recovery through advanced technology.

Dr. Volker Rehrmann, Head of TOMRA Recycling, highlighted the strategic benefits of the PolyPerception partnership.

“We optimise material flows and enhance client decision-making by integrating PolyPerception’s pioneering material analysis with our sorting systems and cloud-based monitoring. It also allows us to improve compliance with increasingly stringent recycling regulations,” he explained.

PolyPerception’s AI-driven solutions are tailored to PET recyclers and sorting facilities. They offer data insights to evaluate stream quality and minimize material loss.

Additionally, the system ensures compliance with local recycling standards and regulations, further strengthening TOMRA’s offerings.

TOMRA’s acquisitions of c-trace and PolyPerception underscore its commitment to building a more efficient and sustainable global recycling infrastructure.

By integrating cutting-edge technologies, TOMRA aims to increase recycling rates and turn waste into valuable resources, contributing to a cleaner and more sustainable future.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.