Singapore — Recycling will play an important role in Austrian integrated oil and gas company OMV's strategy, with up to 60% of global plastics expected to be manufactured from recycled feedstock in thirty years' time, the company's vice president for crude and risk management, Michael Spitzbart, said in a paper presented in the 36th Asia Pacific Petroleum Virtual Conference, or Platts APPEC, on Sept. 15.
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The company is increasing its focus on recycling by raising its stake in Austrian chemical company Borealis to 75% by the end of 2020, subject to regulatory approvals.
The two companies already collaborate on the OMV ReOil project at their shared Schwechat industrial site in Austria. Plastic waste is reprocessed into synthetic crude oil at the OMV ReOil plant, which is then used to produce feedstock for Borealis.
OMV currently holds a 36% stake in Borealis.
OMV aims to gain a significant market share in the joint olefin/polyolefin industries by increasing its expenditure, Spitzbart said.
The company aims to become a leader in polymers and in the recycling industry by obtaining a controlling majority in Borealis, he said.
Borealis is a major player in both virgin polymer and also recycling initiatives. The company is the co-founder of the project, Stopping the Tap on Ocean Plastics, or STOP, where it aims to create a sustainable waste management system to reduce ocean plastic, and has two recycling plants in Austria and Germany.
OMV sees fast growth demand in petrochemicals, particularly polyolefin, triggered by expanding packaging, automotive, and construction demand, Spitzbart said.