Technological watch

Takeover of DSD / Green Dot brand will remain / Focus on plastics recycling

Takeover of DSD / Green Dot brand will remain / Focus on plastics recyclingRemondis has taken over the Green Dot (Montage: PIE)Rumours have been rife in recent months but now it is finalised: German waste managemt specialist Remondis (Lünen / Germany; www.remondis.de) will take over competitor and systems operator Duales System Holding (DSD, Cologne / Germany; www.gruener-punkt.de). The purchasing agreement was signed on 27 September 2018, but the transaction is still subject to the approval of the anti-trust authorities.
The company name and the "Green Dot" trademark will remain. The entire management of DSD will also stay on board in the long term, according to the reports. Furthermore, neither job losses nor a relocation of DSD's company headquarters are planned. Instead, there will be additional investments in order to achieve the joint targets.
Together, the two companies want to optimise the recycling procedures for all material flows and extend the services portfolio. With the acquisition of DSD, Remondis will return to the market of dual systems after four years. In 2014, the Remondis subsidiary Eko-Punkt withdrew as a system partner of the dual systems, mainly due to constant turbulence on the German disposal market for household packaging waste and, most recently, because of a dramatic decline in the number of licenses.
"Demand for recycled plastics will increase and, at the same time, the market will be reshuffled. We expect the acquisition to bring about an increase in the recycling of packaging, also against the background of the new packaging legislation," said Herwart Wilms, managing director of Remondis. "Together," added DSD CEO Michael Wiener, "DSD and Remondis will drive the circular economy further forward." The transaction would bring a "combination of complementary strengths," and open up "sustainable growth potential." An internationally experienced service company for Recycling and one of the pioneers and technology leaders in the field of plastics recycling would, he said, be pooling their know-how.European recycling market in a phase of consolidationAbout 1.5m t of lightweight packaging annually are designated for recycling in Germany (Photo: PIE)The disposal and recycling industry in Germany and Europe is facing profound changes through the ambitious political objectives of the German packaging legislation and the Circular Economy Package of the European Union. Some of the largest dual systems operators in terms of market share already belong to large disposal companies.
Fairly recently, there was another consolidation with the acquisition of the fifth largest recycling company in Germany, Tönsmeier (Porta Westfalica / Germany; www.toensmeier.de) by the Schwarz group with the intention of building its own dual system in Germany through its subsidiary GreenCycle (Neckarsulm / Germany; www.greencycle.de) ? see Plasteurope.com of 28.08.2018.
Chinese companies had previously bought their way into the German market via German affiliates ? the Alba group has been managed with Chinese involvement since 2016, namely by Chengdu Techcent Environment ? see Plasteurope.com of 14.10.2016. At the same time, the market dominance of the former monopolist DSD has been very much put into perspective in the last few years. In competition with eight other dual systems, the company?s turnover is nowadays below the level of medium-sized firms in the industry and also of medium-sized municipal services, says DSD. Nevertheless, the Green Dot company is still regarded as the market leader in Germany with a market share of around 35%.
In the fields of recycling, service and water, Remondis provides services for around 25m people and processes around 30m t/y of waste materials annually. The family company, which was founded in 1934 and belongs to the Rethmann group, generated sales of around EUR 7.3 bn in 2017 with more than 32 employees and 800 sites worldwide. The recycling services provider is constantly on the lookout for new acquisitions. The most recent takeovers have been that of the insolvent PET recycling company PRZ from Elsteraue / Germany and the Swedish company Ad Infinitum Recycling ? see Plasteurope.com of 14.06.2018.01.10.2018 Plasteurope.com [240792-0]

Publication date: 01/10/2018

Plasteurope

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Last update: 2019-09-18