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Finnish circular economy company Syklo Ltd. is progressing with its 2024-announced plan to establish a circular economy production hub, combining advanced plastic recycling and biocomposite manufacturing. The facility's production methods support carbon neutrality and minimize energy consumption.
The EUR 70–80 million investment in Hyvinkää, Finland, will create a 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 in circular economy innovation.
Generating Impact Through Patented Technologies
By leveraging technology and proprietary processes, Syklo aims to revolutionize 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 innovation enables the separation of black plastics, an 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 minimize environmental impact," CEO of Impact Recycling David Walsh says. "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."
Impact Recycling’s patented technologies ensure the 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 lower CO₂ footprint. The new facility will process 50,000 tons 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" Koskela says. "The biocomposite facility utilizes 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."
The biocomposite plant utilizes Syklo’s patented wet-web technology, which preserves cellulose fibre length, enhancing material strength and durability. A closed-loop system recycles water and wastewater, allowing for a low environmental footprint. Syklocomp biocomposites offer a climate-friendly alternative to conventional plastics, 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 customized solutions for specific industry needs. Syklocomp can use both PCR plastics and recycled fibers 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 internationalization and expansion," Koskela says. "Through exports, we bring new business opportunities to Finland, globalize Finnish expertise, and amplify our positive carbon handprint by reducing industrial emissions beyond our borders.”
Syklo is built on an ideological foundation. Syklo product are 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 minimize waste and reduce the overall carbon footprint.
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