The new chemical plastic recycling plant of Lamor in Kilpilahti, Porvoo marks an important step for Finland in terms of the climate, the environment, and the national economy.

Lamor’s chemical plastic recycling plant in Kilpilahti, Porvoo is Finland’s first industrial-scale facility complex utilising pyrolysis technology, in which consumer plastic waste – such as food packaging – will be converted into certified circular oil. Lamor’s solution will reduce the need for fossil-based imported raw materials and raise the recycling rate to a new level: Once all four production lines are completed, the plant will be able to process approximately 40,000 tonnes of plastics per year, which will increase Finland’s recycling rate comfortably above the EU’s 50 % target. The current level is only around 30 %.

“The Kilpilahti reprocessing plant promotes the climate and the environment and generates significant benefits for the national economy. Finland is worth investing in, and Lamor’s waste-recycling plant is an excellent example of improved investment prospects,” says Minister of Economic Affairs Sakari Puisto.

The certified circular oil produced by Lamor’s plant is returned as a raw material for the plastics industry and is suitable even for the most demanding applications, including food packaging, emphasises Johan Grön, CEO of Lamor. Lamor is currently preparing to start up the first production line and has just announced that installation of the process equipment was completed in December.

“We are genuinely proud that we’ve succeeded in building such a highly demanding technology platform and will soon be starting up the first production line. Equally important is the value circle we have created – no longer a chain that ends somewhere – which enables plastics to circulate practically endlessly, from collection and sorting to pyrolysis and reprocessing, and then into new plastic products. Consumer plastic waste returns as new high-quality products,” Grön says.

The long-standing leading influencer in the Finnish plastics sector, Vesa Kärhä, former CEO and current Senior Advisor of the Finnish Plastics Industries Federation, notes:

“The Kilpilahti plant will make Finland self-sufficient in plastics recycling and raise the plastics recycling rate above the 50 percent threshold required by the EU.”

The national economy benefits – the result of several factors

The benefits are not limited to self-sufficiency and major positive climate and environmental impacts. The EUR 100-million annual positive impact on the national economy results from several different factors – the real impact is likely to be significantly higher, Kärhä estimates.

“Every tonne of plastic waste that is incinerated costs Finland EUR 800 as an EU own-resource payment. But when plastic waste no longer needs to be burned and is instead recycled back into raw material in Kilpilahti, the payment disappears. This alone means more than EUR 30 million in direct annual savings. In addition, when exports of plastic waste to Sweden and Denmark are avoided and imported recycled raw materials are replaced with domestic production, the overall impact increases clearly above EUR 100 million per year. The positive impact of being a frontrunner in the circular economy on Finland’s country image is also enormous, even in the billion-euro range. It is a new trump card for Finland in terms of responsibility and credibility,” Kärhä calculates.

From fossil raw materials towards a domestic circular economy

According to CEO Grön, Finland’s current system, in which about 30,000 tonnes of plastic waste are exported annually to Sweden, is unsustainable both environmentally and economically.

“There is little sense in shipping plastic waste from Finland to Sweden while at the same time paying an EU plastics levy of EUR 70–90 million a year. This so-called own-resource payment is also increasing from EUR 800 to EUR 1,000 per tonne by 2028. We are very pleased that thanks to our Kilpilahti plant, these payments may be significantly reduced in the future,” Grön says.

“Our plant will reduce emissions, strengthen self-sufficiency and make Finland a pioneer in the circular economy of plastics,” Grön summarises.
 
FACT BOX (Source: Finnish Plastics Industries Federation)

EUR 100 million annual benefit for the national economy

Impact of the Kilpilahti plant on Finland’s economy at full capacity:

• 40,000 tonnes of plastics recycled instead of incinerated → savings in EU fees approx. EUR 32–40 million
• Exports of plastic waste to Sweden and Denmark end → additional savings/logistics benefit approx. EUR 12+ million
• Imported recycled raw material replaced by domestic production at least approx. EUR 5 million
• Direct domestic economic benefit through employment, sales revenues and the domestic value circle approx. EUR 45 million (Source: Lamor estimate)
• Combined impact: more than EUR 100 million in direct annual benefit for Finland
• In addition, exportable technology expertise is created, with likely export revenues in the future.

 
Further information

Johan Grön, CEO, Lamor Corporation Plc, +358 40 546 4186, johan.gron@lamor.com

Vesa Kärhä, Senior Advisor, Finnish Plastics Industries Federation, +358 40 559 7557, vesa.karha@plastics.fi