Lamor has signed an agreement with Resiclo Oy with the objective of constructing a chemical recycling plant to treat plastics in Kilpilahti area located in Porvoo, Finland.
In the first phase, the plastics chemical recycling plant in Kilpilahti is estimated to have an annual capacity of 10.000 tons. The aim of Resiclo Kilpilahti is to build an annual capacity of approximately 40.000 tons of chemical recycling of plastics in Finland by the end of 2026. The construction work on the Kilpilahti recycling plant is expected to begin in the second half of 2022, and the commissioning of the recycling plant is scheduled to take place in 2023.
Lamor will invest EUR 1.2 million in the company established for the project (“Resiclo Kilpilahti Oy”), which corresponds to 50% of the shares of Resiclo Kilpilahti. The rest of the shares of the company will be owned by Resiclo Oy. The total investment of the first phase is estimated to be EUR 12 million. In addition, Lamor is committed to finance Resiclo Kilpilahti’s future investments with a sub-ordinated loan amounting up to a maximum of EUR 3 million. At the same time, Lamor will invest EUR 1.3 million in Resiclo Oy, where it will be acting as a minority shareholder with a 11.8% stake. The investments will be paid in cash. According to the plan, Resiclo Kilpilahti Oy will be consolidated as a subsidiary in Lamor’s consolidated financial statements. The agreement includes conditions which need to be met before the closing of the agreement. These conditions are expected to be met during the second half of 2022.