Page 53 - Plastics News May 2024

BUSINESS NEWS

Vecoplan hits record revenue, profit in 2023

The German recycling machinery manufacturer increased both revenue and profit compared to 2022, despite
a challenging global market situation

ecoplan, the Germany head- severe downward pressure for most first semester of the 2024, forecasting
quartered manufacturer of of 2023 and 2022 because of persis- that consumption will mostly be direct-
machines and systems for the tent weak demand, competition from ed at ‘more economical items’.
recycling industry, has defied the falling cost of virgin plastics, and For companies that made it through the
odds in 2023. In a year that was tough cheaper imports from Asia. Industry first quarter of 2024, there are reasons
for a lot of recyclers, Vecoplan saw re- bodies warned of plant closures, and for optimism as they can take advan-
cord revenue and profit. recyclers like Umincorp did end up de- tage of the expected seasonal pickup in
“We can once again report a record claring bankruptcy. demand from the second quarter 2024
year in 2023, with revenue reaching a “Despite the challenges this presents onwards.
new high,” said Werner Berens, CEO of for us in order intake, we were able “The continued high demand for our
Vecoplan. to slightly increase both revenue and products and solutions gives us cause
Like many others, the company ac- profit compared to 2022,” said Veco- for optimism,” Berens said.
knowledged its customers were, and plan’s CFO Ina Hannen. Vecoplan expanded its workforce by
continue to be, unsettled by the geo- As for 2024, Berens said Vecoplan is nearly 100 new employees between
political situation and the tense global ‘planning more cautiously’. 2022 and 2023. In 2024, it is planning
market, with many postponing invest- The weak market conditions of the last a €13 million investment to expand
ments. On the show floor at Fakuma couple of years have been predicted to capacity at its production site in Bad
2023, for example, there were some lead to market consolidation in 2024. Marienberg, Westerwald.
reports of double-digit percentage S&P Global expects lack of cost- Source – Sustainable Plastics
drops in sales for recycling machinery. competitiveness with virgin resin will
Recycled polymer prices were under remain an ‘underpinning trend’ in the

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