Manfred Hackl, CEO of the EREMA Group (right) and Horst Wolfsgruber, CTO of the EREMA Group
Economic and geopolitical uncertainty around the world continues to present challenges for the plastics recycling industry. Despite a decline in sales of around 13 per cent compared to the previous year, the EREMA Group has maintained stability and set an important strategic course for the future based on its strong market presence.
Circularity is our shared goal
The technologies and solutions offered by the companies in the EREMA Group mean that it covers the entire value chain of mechanical plastics recycling. "By combining our expertise, together we ensure our customers remain competitive in a dynamic market environment," says Manfred Hackl, CEO of the EREMA Group. This is a success factor that is reflected in the broad range of products, as well as in high system availability and the quality of service provided by the Group. Despite the current challenges, there is still plenty of potential for growth, as Manfred Hackl explains: "More and more high-quality products are made from recycled pellets. The plastics industry has recognised that the proportion of recycled materials used in new products needs to continue to increase in order to achieve our shared goal of circularity."
Development and market potential
While the European market has been subdued, the Group experienced positive momentum in North America and Asia. Regulations such as the PPWR (packaging and packaging waste directive), which has come into force in the EU, also give a positive outlook in Europe, provided that competitiveness can increase again. "This would mean launching initiatives that combine ecological and economic interests and strengthen the industrial base, like the Clean Industrial Deal in the EU. Just as important are global developments that create reliable framework conditions, such as the rollout of Extended Producer Responsibility (EPR) and legal requirements for mandatory use of recycled materials in new products," says Manfred Hackl.
Recently, the EREMA Group has noticed a reluctance to invest in the polyolefins post-consumer segment. On the other hand, demand for recycling solutions for production waste and bottle-to-bottle applications has remained stable. There is a clear trend towards implementing larger-scale machines in both the PET and PO sectors. The increasing industrialisation of these sectors requires solutions that are cost-effective and can be easily adapted to meet demand. The EREMA Group supports its customers during this transformation process and continues to set standards in the industry. The joint venture with Lindner Washtech has proven to be an important development in providing efficient overall solutions along the value chain.
The ongoing growth of plastics recycling can be seen not only in the established segments, but also increasingly in newer application segments involving chemical recycling, and fibre & textile recycling. EREMA started up its first large-scale extruders for chemical recycling during the 2024/25 financial year. The development of fibre-to-fibre recycling also looks very promising. Initial pilot projects have already been carried out, and an EREMA reference system will start operation later this year. The commissioning of a recycling machine for post-consumer textiles by PURE LOOP, one of the Group's subsidiaries, at Salvation Army Trading Company in spring 2024, marks a new milestone. The project won the Plastics Industry Award.
Extensive investment and strengthening the sales structure
At the end of the 2024/25 financial year, the EREMA Group completed a comprehensive investment programme spanning the last five years with a volume of EUR 145 million. "Part of this programme involved the Group's own component manufacturing company 3S, which has been optimised with an investment of EUR 23 million to significantly increase the in-house production share of key components and strengthen the Group's supply chain over the long term," reports Horst Wolfsgruber, CFO of the EREMA Group. EREMA has also strengthened its international sales structure by appointing Christoph Wöss as Global Sales Director in April. In future, the strategic focus will be aligned even more closely with the specifics of regional demand as well as market and customer requirements.
Despite challenging market conditions, the EREMA Group still focuses on the ongoing development of efficient recycling solutions in all sectors. "We are convinced that the demand for recycling technologies will keep increasing in the coming years," says Manfred Hackl. "The framework conditions remain challenging, but the usage of plastic will continue to increase. The only way to meet this demand responsibly is with reliable recycling."