Despite challenging market conditions, the Erema Group is systematically continuing to develop its recycling technologies. In order to increase the proportion of recyclate in plastic products, the family-owned company continues to invest in research and development. In view of the sharply rising global demand for plastics, the company management expects a significant increase in demand for high-performance recycling technologies in the long term. Recycled plastic is also gaining increasing importance globally as a secondary raw material.
The plastics recycling market is under significant pressure for the third consecutive year. High energy costs, weak demand for recyclates and intense international competition are burdening the sector. This is a particular challenge for companies based in Europe, says Manfred Hackl, CEO of the Erema Group: „We have built up a cost structure in Europe that increasingly disadvantages industrial companies in international competition.“
The Erema Group also felt the impact of market developments. In the last financial year, which ended in March, the recycling specialist generated revenue of €235 million – a 28 percent drop compared to the previous year. „Many customers are postponing their investments. We are feeling this directly,“ said Horst Wolfsgruber, CFO of the Erema Group. Nevertheless, the company was able to close the financial year with a profitable annual result.
Challenges in the market
Since its founding in 1983, Erema has sold around 9,200 systems and components worldwide, which are capable of recycling over 26 million tonnes of plastic waste annually. This impressive figure underlines the central role that the company plays in the global recycling market.
The market for recycling technologies is facing numerous challenges. Rising raw material prices, changing regulatory frameworks and the need to improve the quality of recycled material are just some of the hurdles that need to be overcome. Nevertheless, Erema also sees these challenges as opportunities to further consolidate its market position and develop innovative solutions.
Technological innovations
Highly fluctuating input materials demand robust systems. Filtration, degassing and a deep process understanding are crucial. This is precisely where the group of companies„ strengths lie. “The high decontamination performance of our recycling plants ensures quality, while their robustness ensures consistent output. In addition, energy-efficient solutions keep our customers' operating expenses as low as possible," says Hackl.
A circular economy is ultimately created when material design, collection, sorting, washing and extrusion fit together, and the recyclate is later used in new, equivalent products. Through the technological partnership between Erema and Lindner Washtech, customers receive an integrated overall solution from secondary feedstock to the final recyclate. Through the close integration of the processes, the quality, throughput and economic efficiency of the entire system are improved.
New business areas are also increasingly coming into focus. In October 2025, the company acquired a stake in BlockTexx. The Australian pioneer has developed a process that separates polyester and cellulose from blended fabrics – an important step in the recycling of textiles. The PET fibre industry is three times the size of the PET bottle industry. The recycling rate for polyester has so far been only around one per cent.
Plastic recycling is part of the modern raw material strategy
Important growth regions such as China and India are also increasingly recognising the importance of the circular economy for raw material supply and competitiveness. Both countries are driving the development of their recycling industries forward with their own regulatory requirements and initiatives. Erema has been active in these markets for around three decades, founded its own subsidiary in Shanghai as early as 2001 and, in February 2026, opened Erema India together with Lindner Washtech. Further subsidiaries are located in North America, South Africa and Thailand.
Source: Erema Group
