Page 25 - Plastics News May 2020

Borealis announces Q1 net profit of EUR 151 Michelin invests in Canadian plastic recycling
million technology firm

orealis announces a net profit of EUR 151 million for ontreal-based Pyrowave, which describes itself as
Bthe first quarter of 2020, compared to EUR 200 Mhaving developed technology allowing for the
million in the same quarter of 2019. The contribution infinite recycling of plastics, says it has closed on a
from Borouge in the first quarter of 2020 deteriorated series B round of investment funding led by global tire
versus the same period in 2019, as an already low producer Michelin. The funding, for an undisclosed
polyolefin price environment in Asia was further amount, will help Pyrowave add scale and bring its
impacted by the coronavirus pandemic and falling oil modular microwave-based chemical recycling
prices. The drop in profit compared to the first quarter technology to market, says the firm. “This investment is
of 2019 was also due to lower European integrated a concrete illustration of our venture capital strategy,
polyolefin results. At the same time, the contribution which aims to support the most innovative companies,
from the Fertilizer business improved compared to the with a strong growth potential, and focusing on the
first quarter of 2019 thanks to increased sales volumes relevant domains for our businesses,” says Matthieu van
and lower gas prices. In the first quarter of 2020, net der Elst of Michelin Ventures. “Alongside our current
debt increased by EUR 116 million, due largely to the portfolio and our outstanding R&D, this investment
payment of a EUR 300 million final dividend over 2019 to strengthens Michelin's position as a referent in the field
Borealis shareholders. The cash inflow from the business of high technology sustainable materials.” Michelin has
result and dividends from Borouge enabled Borealis to been actively investing in recycling technologies from
maintain a strong financial position, with a gearing of around in the world in the past three years. In April
26% at the end of the first quarter of 2020. “Towards the 2020, the company announced a $3.25 million
end of the first quarter of 2020, the European polyolefins development agreement with Sweden-based Enviro.
industry environment began to feel the effects of the That firm says it has developed a technology to modify
COVID-19 pandemic and lower oil prices. For the second the chemical composition and physical phase of the
quarter in particular we expect a challenging market polymer portion of scrap tires during a pyrolysis
environment due to the continued negative impact of process. In 2018, Michelin acquired United States-
both COVID-19 and record low oil prices,” comments based Lehigh Technologies, and has subsequently
Alfred Stern, Borealis CEO. “At the same time, demand invested to bring that firm's scrap tires-to-micronized
remains solid in many product segments. The current rubber powder (MRP) process to Europe. Pyrowave says
crisis demonstrates just how critical our products are – that after more than one year of technological review,
not only for numerous industry sectors, but for human its technology has “demonstrated its ability to produce
health and safety, too. At this point in time, all our recycled styrene monomer from plastic waste to be
production locations and warehouses are maintaining later integrated in the production of synthetic rubber, a
operations to secure supply of these products. major component found in tires.”

MAY 2020 25 Plastics News