Austrian packaging solutions and recycling specialist ALPLA Group is to acquire Spain's Plastisax S.L. for an undisclosed amount.
Plastisax produces plastic bottles for cosmetics, home and personal care products.
The deal will enable an increased use of recycled material in production operations and strengthen the circular economy in the region, ALPLA said.
It will also consolidate ALPLA's market position in eastern Spain and expand its production capacities, mainly for packaging solutions made from HDPE (high-density polyethylene).
'Expanding Our Customer Base'
Marc de Voogd, general manager of France and Iberia at ALPLA, said, "With the integration of Plastisax into our group, we are expanding our customer base and improving our geographical footprint to serve our regionally based customers even better.
"With the new location near Alicante, we are now very well positioned along the Mediterranean coast in addition to the existing plants near Barcelona and Valencia."
Plastisax uses EBM (extrusion blow moulding) and SBM (stretch blow moulding) as production technologies.
ALPLA will integrate all 58 employees of Plastisax upon completion of the acquisition.
Read More: Consumers 'Confused' About Plastics Recycling, Hold Brands Responsible, Study Finds
Strengthening Local Circular Economy
ALPLA plans to manufacture products with a high proportion of post-consumer recycling material (PCR) in the new plant.
"Plastisax already offers its customers sustainable packaging made from recycled HDPE and recycled PET as well as bio-based PE. ALPLA has significant experience in these fields and is able to provide recycled material from its own plants," de Voogd added.
In autumn of 2019, ALPLA acquired two HDPE recycling companies near Barcelona and Valladolid.
The companies ensure the availability of the production facilities in the region with PCR and contribute to strengthening the local bottle-to-bottle circular economy cycle.