Circular Economy Company Syklo Invests Over 70M to a Pioneering Circular Economy Hub Combining Plastic Recycling and Biocomposite production
Finnish circular economy company Syklo Ltd. is transforming sustainability commitments into reality by advancing its ambitious growth strategy. The company’s new EUR 70–80 million investment will integrate cutting-edge plastic recycling and biocomposite production technologies, setting a new standard for sustainable materials.
Finnish circular economy company Syklo Ltd. is progressing with its 2024-announced plan to establish a state-of the-art circular economy production hub, combining advanced plastic recycling and biocomposite manufacturing. The facility’s innovative production methods support carbon neutrality and minimise energy consumption.
The EUR 70–80 million investment in Hyvinkää, Finland, will create a globally unique circular economy hub, set to commence operations in early 2026.
“Syklo’s mission is to create a more sustainable world where materials are recycled, not incinerated. This investment significantly reduces landfill waste and fossil-based plastic dependency and prioritises high-quality post-consumer recycled plastics and biocomposite. We are not only transforming Finland but also shaping the European market and the global circular economy,” says Teemu Koskela, CEO of Syklo.
This milestone project will boost Finland’s plastic recycling capacity by 50%, reinforcing the country’s position as a leader in circular economy innovation.
Generating Impact Through Patented Technologies
By leveraging cutting-edge technology and proprietary processes, Syklo aims to revolutionise material recovery and high-value sustainable production.
For the plastic recycling plant, Syklo has partnered with the Scottish company Impact Recycling, which brings two patented technologies to the process. One key innovation enables the separation of black plastics, a longstanding industry challenge, by sorting materials with minimal density differences.
“Increasing the use of recycled plastics is one of the most effective ways to reduce dependency on virgin materials and minimise environmental impact. With Syklo, we are introducing a solution that will redefine plastic recycling. Using recycled plastic in large-scale industries is no longer optional – it’s essential,” says David Walsh, CEO of Impact Recycling.
Impact Recycling’s patented technologies ensure the superior quality of Sykloplast recycled plastic pellets compared to standard market alternatives. These advanced PCR plastics can be used in applications previously unsuitable for recycled materials, offering consistent quality and a significantly lower CO₂ footprint. The new facility will process 50,000 tonnes of plastic waste annually – waste that would otherwise be incinerated or sent to landfill.
Integrated Production for Superior Sustainability
The joint facility unlocks synergies for higher-value production. Sykloplast recycled plastic pellets will serve as a raw material for the adjacent biocomposite plant, reducing transport emissions and improving efficiency. The production capacity of the biocomposite plant in the first phase is 8,000 tons.
“The integration of our recycling and biocomposite plants generates multiple benefits. The biocomposite facility utilises our own recycled plastic pellets, cutting transportation costs and enabling the production of high-performance, sustainable materials. Our patented Syklocomp biocomposite is the best in its class in terms of technical properties and brings an answer to the growing regulatory demands for recycled content in plastics,” Koskela explains.
The biocomposite plant utilises Syklo’s patented wet-web technology, which preserves cellulose fibre length, enhancing material strength and durability. A closed-loop system recycles water and wastewater, ensuring a low environmental footprint. Syklocomp biocomposites offer a climate-friendly alternative to conventional plastics, significantly lowering CO₂ emissions.
Syklocomp can be applied as a reinforcement for plastics across various sectors, including packaging, electronics, and transportation. Syklo provides PP and PE masterbatch grades as well as customised solutions for specific industry needs. Syklocomp can use both PCR plastics and recycled fibres as raw materials.
Syklo Targets Growing Markets in the U.S. and Asia
With exports driving growth, Syklo is intensifying its global expansion, focusing on Europe, Asia, and the U.S.
“Our strategy is centred on internationalisation and expansion. Through exports, we bring new business opportunities to Finland, globalise Finnish expertise, and amplify our positive carbon handprint by reducing industrial emissions beyond our borders,” Koskela states.
Syklo is built on a strong ideological foundation. Every Syklo product is designed with sustainability at its core, from carbon-negative biocomposites to premium-quality PCR plastics. While no single solution eliminates the challenges of consumption, Syklo’s approach helps minimise waste and significantly reduce the overall carbon footprint.
