Recycling of plastic materials

Project facts

Project promoter:
Arexim Engineering EAD
Project Number:
BG10-0024
Target groups
Entrepreneurs
Status:
Completed
Initial project cost:
€915,120
Final project cost:
€1,110,486
From Norway Grants:
€ 400,000
The project is carried out in:
Смолян / Smolyan

More information

Description

The project has the objective to close to loop of the company’s recycling effort by adding an extruding line to its existing capacity of grinding scrap plastic materials of different types. The company aims at having the ability to process between 1500 and 2000 metric tons of scrap into ready-to-use recycled plastic materials, which could be used in its own manufacturing processes or to be sold for further utilization by different producers of plastic products. This will help the company respond to the high environmental requirements globally and be beneficial towards optimizing of its costs’ structure. The project will have a significant green impact in three main ways: 1) Eliminate accumulation of waste scrap material at the company ; 2) Source and reuse scrap material accumulated in the region; 3) Eliminate excessive transportation of scrap, grinded scrap and recycled material from various locations in Europe.

Summary of project results

The project was needed for Arexim Engineering EAD to complete the recycling cycle of plastic material scrap generated in the production cycle. The company now has the ability to re-granulate almost 100% of its scrap material, which could be reintroduced in production or sold for higher prices in the secondary market. The company has been able to process over 300 tonnes of material during the first six months of operation as the activity was still ramping up after launch. The company hired the necessary staff to be able to operate 24 hours a day throughout the year to maximise the output potential. Arexim Engineering EAD generated sales of BGN 530’000 and added to its EBITDA over BGN 270 thousand or approximately 5% improvement in EBITDA achieved with less than 1% of the total turnover for 2016. During the project implementation Arexim Engineering EAD had created over 20 permanent new jobs in the region of Smolyan, thus further improving the local economic environment and creating better social conditions in the local community.

Summary of bilateral results