The multi-year investment programme of plastics recycling company MGG Polymers is entering the next round. Following the commissioning of the new logistics centre last year, a fifth compounding plant is now set to raise both the quality and quantity of production to a new level.

MGG Polymers has been carrying out a comprehensive restructuring of the plant for several years in order to expand production capacities and optimise the material flow on the company premises. The plant in Kematen an der Ybbs has been reorganised so that raw material delivery, processing and dispatch are linear. This increases efficiency throughout the entire production process. By investing in modern technologies, the focus is clearly on the future viability of the site.

A new, fifth compounding plant was decided as a strategically important investment to enable higher production volumes and at the same time fulfil the increasing quality requirements of the market. The investment of millions of euros is particularly noteworthy at a time when many European plastics recyclers have postponed their investments due to economic difficulties.

The ‘K5’ compounding plant – a technical masterpiece.

The new system complements the four existing production lines. While the previous compounding lines enable ‘formulations’ of up to five individual components, the new line can precisely dose up to ten different individual components. The ‘K5’ consists of two extruders. The first melts and filters the raw material, while the second adds the additives to achieve the specific material properties required by the customer. This separation ensures greater precision and is intended to further improve the quality of the end product.

In order to utilise the limited factory space efficiently, the two extruders of the K5 were built high up to save space, using the ‘double-decker principle’ so to speak. The material flow follows the force of gravity in order to maximise energy efficiency.

„We were looking for a long time for a system that works at a higher level than the systems we already operate“, explains Günther Höggerl, Managing Director of MGG Polymers. „The system layout of the K5 now gives us the opportunity to produce qualities above what is ‚state of the art`“.

Post-Consumer-plastics and their current market situation.

What Höggerl is referring to: With the new system, Polymers is now able to produce high-quality ABS or PCABS grades with a wide range of material specifications. Thanks to the option of adding several additives such as UV stabilisers or similar to the plastics mentioned, the system can produce tailor-made post-consumer recycled plastics (PCR) for specific customer applications – for example for the outdoor sector, household appliances, but also for the automotive sector.

The European plastics recycling market is currently under great pressure, particularly due to cheap plastic imports from Asia. The fact that new plastics from the Far East are often cheaper than recycled plastic from Europe is forcing recycling companies to optimise their strategies. However, while many companies are having to cut back production or even close down, MGG Polymers is consciously focussing on high quality and modern technologies. The aim is to stand out from the competition and take a leading position in the production of high-quality recycled plastics in Europe. Günther Höggerl is convinced that the forthcoming regulations on the mandatory use of high-quality recycled plastics will make it possible to produce sustainably and economically viable plastics recyclers in Europe in the future.

Harmonising demand and raw material management.

One logistical challenge is to harmonise customer requests for regular deliveries of special PCR plastics with the uneven composition of the incoming material. Production and warehouse planning at Polymers therefore requires a forward-looking approach in close coordination between raw material procurement and customer orders. In addition, plastics that are produced in the course of capacity increases but cannot be sold to the same extent must be stored temporarily. With all these logistical challenges, the additional production and storage capacities that have now been created help to guarantee Polymers customers the right delivery quantities at the right time.

The K5 project: After three years of planning, in March 2025 it was time to go!

MGG Polymers was already considering the purchase of a fifth compounding system at the end of 2021 and had evaluated various manufacturers by the end of 2022. In the first quarter of 2023, the decision was made in favour of a system from a renowned Italian family company that has decades of extensive experience in the construction of similar system plants.

Installation then began at the Polymers site in Kematen an der Ybbs in summer 2024 and the first test runs were carried out in December 2024. Pre-series production has now started.

Positive future prospects.

„The new, fifth compounding plant represents a major technological advance for the company and is a key component of the long-term 2030 growth strategy“, Günther Höggerl summarises. „It significantly increases our capacities and offers more flexibility thanks to the numerous possibilities that arise in the field of additives. K5 is our answer to the increasing quality demands of the market.“

Despite – or perhaps because of – the extreme challenges currently facing the market, this investment in a fifth compounding plant is strategically necessary for MGG Polymers, which is part of the Müller-Guttenbrunn Group, in order to remain competitive in the long term.