Syklo Ltd., a circular economy company based in Finland, is poised to invest over $83 million in a cutting-edge facility that will combine plastic recycling with biocomposite production. Set to commence operations in early 2026 in Hyvinkää, Finland, this facility represents one of the largest investments in the circular economy within Northern Europe. The initiative aims to significantly boost Finland's plastic recycling capabilities while promoting sustainable material production.

Source: Environment Energy Leader

Strategic Partnership to Improve Plastic Recycling Efficiency

A crucial element of this project involves Syklo's collaboration with the Scottish company Impact Recycling. Their proprietary BOSS (Baffled Oscillation Separation System) technology is designed to tackle one of the recycling industry's major challenges: effectively separating plastics with minimal density differences, including black plastics. This innovative technology is expected to enhance sorting accuracy and increase the quantity of high-quality recycled materials.

To further enhance output quality, Impact Recycling's PRE additive technology will be incorporated, enabling precise control over melt flow rate and color characteristics. Moreover, the facility will feature an advanced water management system aimed at preventing microplastic pollution, aligning with environmental sustainability objectives.

Integrated Operations for Cost and Resource Efficiency

Syklo's facility will adopt a vertically integrated model, utilizing its recycled plastic pellets as raw materials for the adjacent biocomposite production plant, which will have an initial capacity of 8,000 tons per year. This streamlined operation will lower transportation costs and improve overall efficiency. The company’s proprietary wet-web technology will facilitate the production of high-performance biocomposites, further enhancing its market position.

Expansion Strategy Aims at Global Demand for Recycled Materials

Syklo is gearing up for international expansion, with plans to supply key markets in Europe, Asia, and the United States. The focus will be on industries where regulatory demands and consumer preferences are increasingly leaning towards circular economy solutions.

Teemu Koskela, Syklo’s CEO, emphasizes the facility's competitive edge, noting that its processes achieve 20% higher plastic recycling efficiency compared to traditional methods. This investment is in line with the company’s long-term ambition to scale high-quality recycling solutions and support global circular economy initiatives.