Greiner Packaging is acquiring ALWAG, a Serbian producer of PET flakes, thus adding a recycling company to the Greiner Group for the first time. The company, to be renamed Greiner Recycling d.o.o., will produce recycled raw materials for packaging. The plant will be a great help in achieving the sustainability targets associated with the circular economy.
"Greiner has set itself ambitious targets as far as sustainability is concerned. With the first recycling plant in the company's history, we intend to increase the amount of recycled material used to manufacture our products. That represents an important step on the journey toward a sustainable circular economy at Greiner," says Axel Kühner, CEO of Greiner AG, at the acquisition of Serbian PET flake producer ALWAG by the Greiner Packaging division on September 1. The company will be renamed Greiner Recycling d.o.o. and will operate as a separate unit directly under Greiner Packaging International. It will continue to focus on recycling PET and other materials. These are used in the form of flakes for the production of packaging.
Reprocessing recyclable materials, starting now
With this acquisition, Greiner is expanding its business model across the value chain and has now added the reprocessing of recyclable materials to its areas of operation. Some recycled materials, all of which previously had to be bought in from external suppliers, will now be produced in house. The Group is also adding to its expertise in the recycling sector and will be able to gradually prolong the life cycles of its products. "Taking this step makes recycling an integral part of our business model. At the same time, the acquisition consolidates our position as a pioneer of sustainability on the international market," said Manfred Stanek, CEO of Greiner Packaging and COO-elect of Greiner AG.
On-site recycling capacity to be expanded
Existing ALWAG customers will continue to be supplied with their usual quantities of recycled material. To ensure that the plant can serve not only Greiner Packaging production but also customers all over Europe in the future, there are plans to expand capacity at the site significantly. The first step will involve investing in the infrastructure and obtaining ISO certifications. Over the coming years, output of recycled materials is to grow from the current level or around 4,000 metric tons per year to as much as 7,000. This expansion in capacity will entail the recruitment of additional employees. The plant will not only produce recycled PET (rPET) but will also present each customer with solutions tailored to its specific needs. Greiner Recycling d.o.o. is Greiner Packaging's third location in Serbia.