For Erema, the 2025/26 fiscal year was marked by a market for plastics recycling that remained challenging. The group’s revenue fell to 235 million euros by the end of March, a 28 percent decline compared to the previous fiscal year. Nevertheless, the company reported that it ended the year profitably. Erema cites high energy costs, weak demand for recycled materials, and intense international competition as key factors weighing on the business. Added to this is the cautious investment behavior of many customers. In the view of management, European industrial companies in particular are under pressure due to their cost structures. “Many customers are postponing their investments. We feel the effects of that straight away,” says Horst Wolfsgruber, CFO of the Erema Group, summarizing the situation. He attributes the fact that the company still achieved a profitable result to, among other things, cost discipline and the company’s structure.
Plastics recycling is developing differently across regions
Europe remains Erema’s most important sales market, but developments in other regions of the world are gaining significance. According to the company, demand for recycling solutions is increasing in Asia. Business is also growing in the Americas, particularly in the recycling of production waste. In the long term, rising plastic consumption could necessitate additional investments in recycling capacity. Erema cites OECD calculations indicating that global plastic demand could rise from 460 million metric tons in 2019 to 1.2 billion metric tons in 2060. At the same time, the OECD projects a recycling rate of only 17 percent for 2060. If a larger share of raw material demand is to be met by recycled materials in the future, both recycling capacities and the technical capabilities for processing complex material streams must therefore be expanded.
Erema develops recycling technology for fluctuating material streams
One technical challenge in plastics recycling lies in the varying properties of the input materials. Recycling plants must produce a recyclate stream that is as consistent as possible, even when material qualities fluctuate. Filtration, degassing, and the coordination of the individual process steps play a key role in this. According to Manfred Hackl, CEO of the Erema Group, these challenges are felt particularly by businesses based in Europe: “In Europe we have created a cost structure that puts industrial companies at an increasing disadvantage in the international marketplace.” The plant manufacturer focuses its development efforts, among other things, on decontamination, robust processes, and energy-efficient plant operation. In doing so, the company does not view extrusion in isolation. For a functioning material cycle, product design, collection, sorting, washing, and processing must be coordinated.
Integrated processes aim to make plastics recycling more efficient
One approach to achieving greater integration of the process steps is Erema’s technology partnership with Lindner Washtech. This partnership combines the processing of the feedstock and the production of recycled material into a single, end-to-end solution. The goal is to improve material quality, throughput, and cost-effectiveness across the entire process. At the same time, Erema is tapping into additional material streams. Since October 2025, the group has held a stake in the Australian company Blocktexx, which has developed a process for separating polyester and cellulose from mixed textiles. This move is driven by the fact that the recycling rate for polyester fibers has been low to date. According to Erema, the recycling rate in this sector is around one percent.
Plastics recycling requires reliable framework conditions
In addition to technological advances, Erema views regulatory requirements as a key factor for further investment. In the European Union, regulations governing packaging and end-of-life vehicles, among other things, can generate additional demand for recycled materials. However, reliable and consistent implementation is crucial. “If they are not implemented consistently, no one will invest. We need a standardised system to make recyclates more attractive. Only then will recycling be able to establish itself as part of a long-term raw materials strategy,” says Hackl.
The circular economy is also gaining importance outside of Europe. China and India are expanding their recycling industries through regulatory requirements and their own initiatives. According to Erema, the company has been active in both markets for about three decades. In addition to locations in Asia, the group has branches in North America and South Africa.
Erema views plastics recycling as a long-term growth market
Since its founding in 1983, the Erema Group has sold approximately 9,200 systems and components, according to its own figures. The installed technology enables the processing of more than 26 million metric tons of plastic waste annually worldwide. Despite the current slump in investment, the company therefore continues to focus on research and development. The long-term outlook does not depend solely on growing demand for plastics. The decisive factor will be the extent to which high-quality recycled materials can be produced economically and reused in products. High-performance recycling technology and reliable framework conditions will thus become key factors for the further development of plastics recycling.
