Borouge International will add close to 14,000 metric tons of annual mechanical polyolefin recycling capacity across two European sites, with the first tranche online in the first quarter of 2027.

The Vienna-based polyolefins producer says it will invest in expansions at Niedergebra, Germany, and Wildon, Austria. The company frames the move as a response to brand preference for recycled content, supply resilience needs and regulatory pressure, naming the EU's Packaging and Packaging Waste Regulation (PPWR) explicitly.

"Circular materials are a strategic resource for Europe and around the world, not only to meet sustainability and regulatory requirements, but also to strengthen industrial competitiveness, brand differentiation and supply resilience," said Dirk Langhammer, senior vice president-circular solutions at Borouge International.

What capacity is being added, and when?

At Niedergebra — the former MTM plastics plant — annual output of recycled mixed polyolefin (rPO) materials will increase by close to 9,000 metric tons. The German facility processes postconsumer mixed polyolefin scrap into recycled materials for what Borouge calls a broad range of rigid applications. The company expects the additional capacity to become operational in the first quarter of next year.

At Wildon, Austria — formerly Ecoplast — annual recycled polyethylene (rPE) output will rise by up to 5,000 metric tons. That tranche is expected online in the fourth quarter of next year and will serve demand for recycled materials, particularly in flexible packaging applications.

Both figures represent announced expansions, not yet-built capacity. The company has not disclosed the investment size behind the projects.

How does this fit Borouge's European footprint?

Borouge says the two expansions strengthen its ability to meet growing customer demand for mechanically recycled polyolefins produced in Europe. The German and Austrian plants already convert polyolefin scrap into materials for flexible packaging and rigid applications, according to the company.

The expansions complement an existing three-site European mechanical recycling portfolio:

• Niedergebra, Germany — rPO for rigid applications, plus close to 9,000 tons of added capacity from Q1 2027.
• Wildon, Austria — rPE for flexible packaging, plus up to 5,000 tons of added capacity from Q4 2027.
• Elin Pelin, Bulgaria — more than 20,000 metric tons annually of premium-quality postconsumer recycled polypropylene (rPP) grades.

Together, the company says, these sites cover flexible PE, rigid PP and mixed polyolefin streams.

Beyond Europe, Borouge produces PE film grades at its Syndigo plant in Indiana and operates in Asia, working with what it calls a wide portfolio of suppliers for recycled material.

Which product lines will carry the added volumes?

Langhammer said the investments in the European recycling platform will give a larger range of customers more reliable access to circular polyolefin solutions, "from premium Borcycle M grades to fit-for-purpose Recleo materials tailored to diverse applications."

The Borcycle M line has a regulatory foothold in North America: the grades previously received an FDA letter of no objection for recycled plastic use.

Why the PPWR reference matters

Borouge ties the investment case directly to evolving EU packaging rules. The PPWR sets recycled-content obligations that will shape demand for mechanically recycled polyolefins from converters and brand owners across flexible and rigid packaging — the exact streams Niedergebra and Wildon supply.

The company positions the expansions as a way for customers to secure reliable European-origin supply rather than depend on imported recycled material.

The near-term milestones to watch are operational ones: commissioning of the Niedergebra rPO line in Q1 2027 and the Wildon rPE expansion in Q4 2027. Delivery on that schedule will determine whether Borouge's added volumes reach converters ahead of tightening PPWR recycled-content requirements.