LyondellBasell is acquiring a 50 percent stake in the Dutch plastics recycling company Quality Circular Polymers (QCP).
Houston-based LyondellBasell said Nov. 27 it was entering into a 50-50 partnership with French water and waste management company Suez, which is a strategic investor in the Sittard-Geleen-based recycling company.
The transaction, for an undisclosed value, is expected to be completed by the end of the year following regulatory approvals.
LyondellBasell said the investment marks the first time a major materials supplier is partnering with a resource management company to contribute to circular economy objectives.
"As the circular economy increases in prominence and importance, we believe that demand for recycled materials will continue to grow," LyondellBasell CEO Bob Patel and Suez CEO Jean-Louis Chaussade said in a joint statement.
The acquisition taps into LyondellBasell's European market presence and technical capabilities combining it with Suez's ability to collect and recover waste into new materials.
QCP was founded in 2014 and starting in 2018, its Sittard-Geleen facility, near Maastricht, will have a capacity to convert consumer waste into 35,000 metric tons of polypropylene and high-density polyethylene per year.
According to the QCP website, the company's facility in Chemelot, the Netherlands, has room for expansion of up to 100,000 tonnes a year.
The total investment into the QCP plant will be 75 million euros ($89.4 million). Of that amount 35 million euros ($41.7 million) was invested in the first phase of the facility, which started production at the end of 2015.
LyondellBasell will market QCP materials following the completion of the transaction.