Braskem, the market leader and a pioneer in the production of biopolymers, entered into an agreement for the acquisition of shares and the subscription of new shares in Wise Plásticos S.A., a company engaged in mechanical recycling. Braskem will acquire an equity interest of 61.1% in the share capital of Wise for an estimated amount of R$121 million, part of which will be used to expand its current production capacity by two-fold to around 50,000 tons/year of recycling by 2026.
The transaction, which is subject to approval by the applicable authorities, represents yet another step by Braskem in its strategy to invest in the circular economy by developing sustainable and innovative solutions based on opportunities to improve the plastics recycling chain, which includes the challenge of recycling in Brazil.
Wise, a relevant player in the recycling of polyolefins for consumer goods companies, is a Brazilian company based in Itatiba, São Paulo that has operated in the sector for over 15 years. Currently, it has nominal capacity to recycle approximately 25,000 of plastic waste per year and maintains important partnerships with companies such as Unilever and Natura.
The company has a strategic expansion plan to capture opportunities in this market over the coming years focusing on polypropylene (PP) resins using caps, housewares, home appliances and on high-density polyethylene (HDPE) using packaging for personal and home care and cosmetics, corrugated tubing, etc.
According to Edison Terra, vice-president of Olefins and Polyolefins at Braskem, the transaction demonstrates the solidity of Braskem's strategy to accelerate development of the chain and leverage recycling in Brazil: "The transaction with Wise contributes to our macro-goal of eliminating plastic waste, which includes projects focusing on education, recycling infrastructure, mechanical recycling and advanced recycling."
"Braskem and Wise share the same vision and goals, which are to develop the chain and leverage recycling in the country. The two teams will work together and with other players in the sector transparently to foster the market's growth, drive advances in the supply chain and improve products and customer service," said Bruno Igel, will stay on as CEO of Wise.
Until the transaction's approval by Brazil's antitrust agency CADE, nothing will change in the market, and Wise will continue to sell its portfolio normally. After approval of the acquisition of 61% of the company, Wise will maintain its own governance, team and management and will focus on meeting the needs of its current and future clients, now drawing on the support and potential synergies provided by Braskem's entry into its capital.