Lamor acquires full ownership of the project company for chemical recycling of plastics to solve the increasing demand for circular oil

Lamor increases its ownership in the company's strategic chemical recycling of plastics business and buys the remaining 30 percent stake of minority shareholder Resiclo Oy in Lamor Recycling Oy. As a result of the transaction, Lamor owns 100 percent of the chemical recycling of plastic business, highlighting the company's strong commitment to this significant project, which aims to provide a solution for the increased need for circular oil in the plastics industry.

Initiating and growing the chemical recycling business for plastics is a key part of Lamor's updated strategy for 2025–2027. The first production line of the concept plant being built in Kilpilahti, Porvoo, is expected to start in the third quarter of 2025 and will be able to recycle about 10,000 tons of plastic per year. In the long term, Lamor aims to increase processing capacity to 100,000 tons with additional production lines and two additional plants.

Lamor poised to become one of the world's leading producers of circular oil using chemical recycling of plastics

There is an urgent global need to increase the use of recycled materials in plastic production, and the EU requires a significant increase in plastic recycling in the coming years. Not all plastics can be recycled mechanically; achieving the targets requires a significant expansion of chemical recycling to reduce the use of virgin fossil oil. The demand for certified circular oil is now growing rapidly.

"Recycling plastic is economically sensible and ecologically necessary. Certified circular oil is an extremely versatile, high-quality raw material that is well-suited for the production of functional plastic products, including demanding food packaging. Lamor is one of the few companies in the world that utilizes thermochemical technology on such a large scale in recycling. In this business, we can leverage our long experience with hydrocarbons and solving environmental problems related to them as well as our strong position among industrial players," says Lamor's CEO Johan Grön.

Lamor has been developing sustainable environmental solutions for over forty years. The company's roots are in the development of oil spill response equipment and capabilities. Since then, Lamor has expanded its operations to soil remediation, water treatment, and waste management. Over the years, the common factor in the company's solutions has been hydrocarbons and solving the environmental problems they cause. As an oil-based material, recycled plastic is a natural next step for the company.

Finland’s first industrial-scale circular oil plant – the first production line alone handles the plastic waste of a medium-sized city

The concept plant being built in Kilpilahti, Porvoo, is Finland's first industrial-scale plant for the production of circular oil from recycled plastic. There are only a few similar projects worldwide.

"We have made a significant investment in the completion of the first production line in Kilpilahti because we believe this is a significant opportunity to create continuous and profitable business. The facility’s first production line alone can recycle the amount of plastic waste equal to the amount produced by hundreds of thousands of people; it is waste that would otherwise not be recyclable," emphasizes Grön.

"Lamor has built a unique certified value chain from suppliers of recyclable plastic to the further processing of circular oil and its end use in the plastics industry. We believe that as the sole owner, Lamor is better positioned to lead the final phase of the project to optimize processes with all stakeholders. It also ensures that we can fully benefit from it."

An innovative modular solution enables scalable production

Grön believes that Lamor’s innovative modular solution enables scalable production and sets the company apart from its few competitors. It also enables efficient expansion of production and better risk management.

"Now, we are focusing on getting the first concept production line operational, which will enable the start of construction of the next production lines. There is a pressing need worldwide to increase the use of circular new oil in plastic production, and we believe that producing it will be a significant opportunity for Lamor to create profitable growth in the long term," adds Grön.

"Resiclo is committed to advancing circular solutions for plastics through chemical recycling. As the initiator of this joint concept project, we are pleased to see Lamor taking the full lead on this significant investment, paving the way for future plants," says Juha Pinomaa, Chairman of the Board of Reciclo Oy.