Syklo’s Hyvinkää circular economy hub receives environmental permit

Syklo, a leading circular economy company, has been granted an environmental permit for its planned mechanical plastic recycling and biocomposite production plant in Hyvinkää. Issued by the Regional State Administrative Agency for Southern Finland, the permit will accelerate Syklo’s plans to expand its biocomposite production line at the site. For several years, Syklo has successfully tested its biocomposite technology at a patented pilot plant.

The planned facility will be part of Syklo’s unique circular economy hub in Hyvinkää. Once operational, it will be the largest plastic recycling plant in Finland, processing plastic waste into high-quality raw materials for the demanding plastics industry.

The site, spanning 5.5 hectares, will retain its capacity to handle up to 100,000 tons of waste annually. However, the new permit allows Syklo to focus more on processing plastic waste by reducing the intake of materials like demolition concrete and tire waste, while increasing the recycling of agricultural, construction, packaging, and municipal plastics.

The Hyvinkää facility will focus heavily on plastics, which will account for approximately 50% of the total recycling capacity. This shift is central to Syklo’s vision of improving plastic waste management and contributing to the EU’s broader circular economy goals.

Plastic for Biocomposite Production: Synergy Between Facilities

The environmental permit will also accelerate the development of Syklo’s biocomposite production line, strategically positioned within the Hyvinkää circular economy hub.

“The synergy between the plastic recycling and biocomposite production lines is key,” says Mikko Kokkonen, Head of Operations at Syklo. “By directly supplying recycled plastic to the biocomposite plant, we streamline logistics, reduce waste incineration, and create valuable local jobs.”

Syklo’s patented biocomposite production line, currently tested at a pilot facility in Sastamala, is set to produce 8,000 tons of biocomposites annually once completed.

Construction Progresses in Phases

Construction at the Hyvinkää site, located on the former Suomen Energiamurske area, is progressing according to plan, with forest clearing and earthworks already completed. Syklo has also begun the process of selecting equipment suppliers and construction partners.

“We are entering the next phase of the project in early 2025, where critical decisions will be made to accelerate our efforts in revolutionizing plastic waste management and implementing sustainable circular economy solutions,” says Kokkonen.

Syklo’s strategic partner, Impact Recycling from Scotland, will support the project, which is scheduled for completion in early 2026.

The project brings significant environmental and economic benefits

The new plastic recycling plant is expected to generate significant economic benefits, including annual savings of up to €25 million for the Finnish government due to reductions in the EU Plastic Tax. Furthermore, the plant will help reduce Finland’s estimated greenhouse gas emissions by up to 160,000 tons annually (CO2eq).

Upon completion, the facility will increase Finland’s plastic recycling capacity by up to 50%, setting a new standard for the country’s recycling infrastructure.

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