EREMA Group remains strong amidst market challenges

In an era marked by economic uncertainty, the EREMA Group continues to lead the way in providing advanced plastics recycling solutions. Over the course of the 2024/25 financial year, which concluded at the end of March, the Group's systems helped recycle approximately 26 million tonnes of plastic waste globally, contributing to a revenue of EUR 330 million.

The plastics recycling industry faces numerous challenges due to ongoing economic and geopolitical instability. Despite a 13% decline in sales compared to the previous year, the EREMA Group has shown remarkable resilience, leveraging its strong market presence to steer towards a future of strategic growth.

Advancing the Circular Economy

The EREMA Group's range of innovative technologies covers the full spectrum of mechanical plastics recycling. "By combining our expertise, we ensure our customers stay competitive in an ever-evolving market," says Manfred Hackl, CEO of the EREMA Group. This collaborative approach is not only evident in the diverse product offerings but also in the Group’s commitment to maintaining high system availability and service excellence. Hackl remains optimistic about the potential for growth: “The demand for high-quality products made from recycled pellets is rising. The plastics industry understands that increasing the share of recycled materials in new products is essential to achieving the global goal of circularity.”

Market Development and Opportunities

While the European market has shown limited growth, the Group has seen positive momentum in North America and Asia. The implementation of regulations like the EU's PPWR (Packaging and Packaging Waste Directive) also provides a promising outlook for Europe, as long as competitiveness can be restored. Hackl notes, "Initiatives that balance ecological and economic interests, like the EU’s Clean Industrial Deal, could further strengthen the industrial base. Global developments, including the rollout of Extended Producer Responsibility (EPR) and legal mandates for recycled material use, are also crucial."

Despite a slowdown in investment within the polyolefins post-consumer segment, demand remains steady in other areas, particularly for recycling solutions related to production waste and bottle-to-bottle applications. Notably, there is a growing trend towards larger-scale machines in both the PET and PO sectors, as the increasing industrialisation of these areas requires cost-effective, flexible solutions. EREMA Group continues to support its customers through this transformation while setting industry benchmarks, with the recent joint venture with Lindner Washtech enhancing the Group’s ability to provide integrated solutions across the entire recycling value chain.

The Group's growth is also evident in emerging sectors, particularly chemical recycling and fibre & textile recycling. During the 2024/25 financial year, EREMA launched its first large-scale extruders for chemical recycling. Additionally, progress in fibre-to-fibre recycling is gaining momentum, with initial pilot projects already underway. A new reference system for fibre recycling will start operations later this year. Another milestone for the Group was the successful commissioning of a post-consumer textile recycling machine by PURE LOOP, a subsidiary, at Salvation Army Trading Company in spring 2024. The project went on to win the prestigious Plastics Industry Award.

Strategic Investments and Strengthened Sales Structure

The end of the 2024/25 financial year also marked the completion of a major investment programme, with EUR 145 million allocated over the past five years. This includes a significant EUR 23 million investment into the Group’s component manufacturing company, 3S, which is set to increase in-house production capabilities and fortify the supply chain long-term. "This move is part of a broader strategy to enhance our self-sufficiency in critical components," reports Horst Wolfsgruber, CFO of the EREMA Group.

To further enhance its global reach, EREMA also appointed Christoph Wöss as Global Sales Director in April. This appointment underscores the Group’s commitment to tailoring its approach to regional needs and customer requirements, ensuring continued growth in diverse markets.

Commitment to a Sustainable Future

Despite the current market challenges, EREMA remains focused on developing efficient and scalable recycling solutions across all sectors. "We are confident that demand for recycling technologies will keep growing," says Hackl. “While the conditions remain tough, plastic consumption will keep rising, and the only way to meet this challenge sustainably is through reliable and innovative recycling technologies.”