A Conversation with Patrick Blessing, CEO of PolymerCycle Group

Patrick, the European plastics recycling industry has been under significant pressure. What are the biggest challenges you’re seeing on the ground?

The market is going through one of its most uncertain phases. The current political and geopolitical environment is creating significant volatility, with sharply rising virgin material prices but very limited visibility on the long-term effects. As a result, it has become increasingly difficult to predict where the market is heading. At the same time, the industry is dealing with persistent structural challenges. Energy costs in Europe remain high, and regulatory fragmentation across member states continues to add complexity. This is happening against a backdrop where global overcapacity in virgin plastics contrasts with the opposite trend in recycling: across Europe, we are seeing ongoing facility closures and a steady reduction in capacity. Since 2023 alone, the industry has lost nearly a million tons of recycling capacity. This combination of short-term uncertainty and structural pressure is creating a real risk that recycling capacity will fall short in the coming years, particularly once upcoming regulatory requirements begin to drive additional demand. That is a serious setback for the circular economy. But it also marks a decisive moment: the companies that navigate this phase successfully will be those that can deliver consistent quality at scale and provide reliability to increasingly demanding customers.

PolymerCycle now covers the full plastics recycling value chain. Why is that integration so important, especially in today’s market?

In a fragmented industry under pressure, the integrated model is a competitive advantage. Most recyclers cover one or two steps – they either trade, or sort, or regranulate. We cover everything: procurement and trading of post-industrial and post-consumer waste, advanced sorting and separation, milling and regranulation, and – with Hoffmann + Voss – precision compounding to produce application-ready materials. That means our customers get a single partner for the complete chain, with no coordination gaps and no quality hand-off risk. We control the input, the process, and the output. In a market where consistency and supply security are the biggest concerns, that end-to-end control is what sets us apart.

The acquisition of Hoffmann + Voss in 2025 was a major milestone. What does that capability add to the group?

Hoffmann + Voss transforms what we can offer. With over 60 years of compounding expertise, they engineer recyclates and recompounds from technical plastics for the most demanding applications: automotive, household electronics, packaging, and industrial components. Our in-house laboratory is testing and qualifying every batch. What this means in practice is that we can take a complex waste stream, separate and process it, and compound it into a material that meets the exact specifications of a premium OEM, whether that’s color consistency, low odor, long-term stability, or surface quality. This reflects a broader and more differentiated value proposition: alongside our cost-efficient standard grades, we can now deliver high-performance engineered circular materials designed to meet technical specifications.

The EU is pushing forward with new circularity regulations, including recycled content targets and end-of-waste criteria. How does PolymerCycle Group benefit from this?

The regulatory direction is clear: Europe will require more recycled content across more product categories, and the standards for quality and traceability will only get stricter. The Packaging and Packaging Waste Regulation, the Single Use Plastics Directive, the ELV Directive – all of these create structural demand for what we produce. But here’s the key point: these regulations don’t just ask for any recycled material. They demand certified, batch-tested, traceable recyclates that meet industrial performance standards. That is exactly where we are positioned with PolymerCycle Group. Our in-house lab, our ISO certifications, and our ability to deliver lab tests with every batch mean we can serve the customers who take these requirements seriously. The regulatory tailwind will benefit the market overall, but it will disproportionately benefit quality-focused, integrated players.

What are the priorities for PolymerCycle Group going forward?

Three things. First, we’re focused on deepening our customer relationships and expanding into new application areas. With regulations like PPWR and ELV accelerating demand, automotive and packaging are key growth drivers, while electronics and household appliances are also increasingly looking for alternative, more sustainable materials. Second, we’re investing in digitization across the group – from procurement and production planning to quality management and supply chain transparency. In a business where consistency and traceability are critical, better data and systems are a direct competitive advantage. And third, we continue to evaluate targeted acquisitions that complement our capabilities or geographic reach. The market consolidation is creating opportunities for well-positioned groups to grow strategically. With Vidia’s operational support and expansion capital, we have the backing to pursue these opportunities at the right pace. Our ambition is clear: to be the partner of choice for companies that want high-quality recycled materials at industrial scale – reliably, traceably, and without compromise.

polymercycle.com