Krones Recycling established as subsidiary of German company

Neutraubling, Germany-based Krones AG says it has established Krones Recycling GmbH, under the management of Dr. Michael Gotsche, “as independent subsidiary company” effective this July 1. The new subsidiary will be based in Flensburg, Germany.

Krones, a global provider of packaging equipment and systems predominantly for the beverage market, says the newly founded company “takes over all activities relating to plastics recycling, but continues to utilize Krones' global production, sales and service network.”

The spin-off emphasizes the growing significance of the recycling sector and the important role that Krones Recycling plays in achieving Krones AG’s sustainability goals, says the firm.

“The demand for recycled plastics is increasing rapidly worldwide: consumer awareness is growing, companies are setting themselves ever more ambitious sustainability targets and recycling requirements from international governments are also increasing,” states Krones AG.

“The spin-off will enable Krones Recycling to develop faster and in line with market requirements,” says Krones AG CEO Christoph Klenk. “Because in line with our claim ‘solutions beyond tomorrow,’ this division makes a decisive contribution to protecting the environment by returning plastic [scrap] to the value-added cycle.”

Krones AG refers to itself as a company with almost 30 years of experience in plastics processing and almost 25 years in the field of recycling.

New subsidiary managing director Gotsche says leaner processes and structures will help Krones Recycling respond more quickly to shifts in the constantly changing recycling market. “The newly founded company offers us the necessary flexibility and scope for action to be able to implement decisions in a customer-oriented, fast and optimized manner,” says Gotsche.

Independence will not mean separation from the wider Krones focus on plant engineering, says Gotsche. “We know that our clients appreciate Krones’ overall line expertise, which means they get everything from a single source. They can continue to rely on this in the future. The worldwide sales and service network is also available to us without restriction.”

The European company says several types of plastic, including polyethylene terephthalate (PET), polyethylene (PE), polypropylene (PP) and polystyrene (PS) are already being processed on Krones Recycling lines around the world.

“Our vision is to make a daily contribution to a global circular economy for all plastics by offering our customers sustainable and profitable recycling solutions,” says Gotsche. The firm has its own sustainability target to have at least 30 percent of the plastics processed on Krones lines returned to the packaging cycle as a recycled resource.

The new subsidiary says it will “continue to conduct intensive research into new innovations at its in-house Recycling Technology Centre. There, tests on the recyclability of various plastics, including adhesives and colors, can also be carried out under real conditions on behalf of customers.”

In a recent investors presentation, Krones AG says it sees overall company revenue growth coming from a rising world population, increased urbanization and middle class lifestyles, and recycling-related sustainability spending.

The beverage packaging systems maker says emissions reductions commitments from companies including Coca-Cola, PepsiCo, AB Inbev and Heineken could lead in up to more than $11 billion in sustainability-related packaging investments globally between now and 2030.

In addition to providing equipment and systems for plastic beverage packaging, Krones AG also offers applicable technology for metal cans and glass bottles.