Plans for Veolia to become a producer of recycled raw materials have been enhanced by its purchase of Dutch recycled plastic manufacturer AKG Kunststof Groep.
The company Veolia has bought is a specialist and custom manufacturer of a broad assortment of high-quality polypropylene granulates, which are sold to manufacturers of plastic products.
This material often substitutes virgin material and the acquisition is part of Veolia’s strategy to position itself as a recycled raw material supplier within the circular economy.
AKG has sold 37,000 tonnes of recycled material and had revenues of €34 million (£24.9 million) in 2014.
It will also become a Veolia Centre of Expertise, specialising in the field of PP recycling, compounding, and manufacturing. It will also be the cornerstone for Veolia’s expansion of recycled raw plastic material manufacturing.
Veolia chairman and chief executive Antonie Frérot said: “This operation is the next natural step for Veolia in its strategic transformation and development.
“Our growth on new thriving markets and our ability to provide solutions for the recovery and production of raw recycled materials have demonstrated the group’s ability to turn the waste of some into resource for others, by encouraging the implementation of a circular economy from waste collection to treatment, and now to recycled materials manufacturing.”