July 20, 2025 –
European Plastic Recycling Sector Faces Major Restructuring as Veolia Shuts Key German Facilities
In a strategic shift shaking Europe’s circular economy landscape, environmental services leader Veolia has confirmed plans to decommission its two flagship plastic recycling plants in Bernburg, Germany by year-end. The impending closures of the MultiPet and Multiport facilities – with combined annual processing capacity exceeding 70,000 metric tons – signal profound changes in continental recycling economics.
The decision reflects mounting pressures on Europe’s mechanical recycling sector:
• Asian-sourced recycled plastics now undercut EU producers by 15-20%
• Energy costs remain 40% above pre-crisis levels
• Collection rates stagnate below recycling capacity needs
• Regulatory complexity increases compliance burdens
“These legacy facilities pioneered PET and HDPE recycling when circular economy was just theoretical,” acknowledged Veolia Germany’s Circular Polymers Director Klaus Fischer. “Today’s market demands specialized solutions, not bulk processing.”
Concurrent with the German wind-down, Veolia is redirecting investments toward premium recycling applications. The company’s new £70 million UK facility exemplifies this pivot – transforming post-industrial PET trays into food-grade rPET through advanced decontamination technology.
Market analysts observe three emerging industry trends:
- Regionalization: Shorter supply chains for brand owners’ sustainability commitments
- Specialization: Niche recycling for automotive, medical, and food contact applications
- Verticalization: Integrated collection-processing-manufacturing ecosystems
For color masterbatch producers, these shifts present both formulation challenges and opportunities. The transition to application-specific recycling requires heat-stable pigments that survive multiple processing cycles while meeting stringent end-use specifications. AsiaMB’s research indicates growing demand for such tailored solutions, particularly in the automotive and electronics sectors.
The Bernburg closures will displace approximately 200 workers, though Veolia promises retraining opportunities at its growing chemical recycling projects. As Europe’s Green Deal implementation accelerates, industry watchers anticipate further consolidation in traditional mechanical recycling, with innovative pyrolysis and dissolution technologies attracting major investments.