Cyclyx International to be restructured

Norway-based chemical recycler Agilyx ASA has agreed to a nonbinding memorandum of understanding to restructure its plastics sorting joint venture, Cyclyx International LLC, with petrochemical industry partners ExxonMobil and LyondellBasell, according to a Feb. 4 announcement.

The companies, which operate a Circularity Center in Houston and are building a second in the Dallas-Fort Worth area, will split ownership of those facilities. ExxonMobil and LyondellBasell will own the Houston location, while Agilyx will be the sole owner of the still-in-development Dallas-Fort Worth location.

RELATED: Circular ambition

In its own statement, Agilyx says it will assume full ownership of the Cyclyx consortium by March 25 and will keep its 50,000 metric tons-per-year offtake agreement with ExxonMobil, with the potential to add volume in the future. The company is holding onto the lease for the Dallas-Fort Worth site and says it may consider subleasing it. As part of the restructuring, Agilyx is looking to unwind its $50 million senior secured bond for the Dallas-Fort Worth circularity center, also known as CCC2.

The Cyclyx consortium consists of plastics industry stakeholders such as PepsiCo, AstroTurf, Advanced Drainage Systems Inc., Eastman and many more.

In a statement, Cyclyx says, “The restructuring positions each joint venture member to focus on respective strengths and business objectives, while continuing our work to help address the plastic waste challenge.”

According to Agilyx, the restructuring will eliminate its capex exposure at Cyclyx, remove a material standalone operating cost base and improve long-term returns on capital. The company says it plans to shift its focus to the expansion of European plastic recycling platform GreenDot Global, which it purchased a 44 percent stake in last year.

At the time of its purchase, Agilyx said GreenDot is licensed in 29 countries and processes more than 1 million tons of packaging scrap annually, including more than 400,000 tons of plastic. Currently, Agilyx says it expects GreenDot to generate more than 20 million euros ($23.6 million) in earnings before interest, taxes, depreciation or amortization (EBITDA) this year, with ambitions to exceed 100 million euros ($118 million) by 2030 through mergers and acquisitions and organic growth.

“This reorganization represents a decisive step in simplifying Agilyx’s business and reducing risk,” Agilyx CEO Ranjeet Bhatia says. “By transferring the Cyclyx Houston Circularity Center to our partners, acquiring 100 percent ownership of Cyclyx International and retaining the long-term offtake contract with ExxonMobil, we are substantially reducing our capex and opex exposures while significantly increasing strategic and financial flexibility. These actions preserve the strategic value of Cyclyx while increasing alignment with our expanding European platform.”

Circularity Center activity

In an October 2025 announcement, Cyclyx said it had supplied more than 60 million pounds of postuse plastics as feedstock for chemical and mechanical recycling.

Cyclyx’ approach combines data-driven sourcing, customized feedstock and partnerships with recyclers and municipalities. Using proprietary technology and advanced sorting capabilities, the company can analyze, blend and create customized feedstock to meet customer specifications for ISCC Plus certified products.

However, it is unclear if the Houston Circularity Center, or CCC1, has been completed. In April 2025, the company announced it had finished all major civil and structural work at the facility. When fully operational, the location will have the capacity to produce 300 million pounds of feedstock per year.

If CCC2 in Dallas-Fort Worth is completed, it will double Cyclyx’ feedstock capacity to 600 million pounds per year.

Adding capacity

Notably, ExxonMobil announced Feb. 2 that its third chemical—also known as advanced—recycling unit at its Baytown, Texas, complex was fully operational.

With the third unit up and running, the Baytown site now has the capacity to process up to 250 million pounds of plastic scrap annually. ExxonMobil says it also is on track to reach approximately 450 million pounds of annual advanced recycling capacity at its global facilities by the end of this year.

“Three units strong, and we’re just getting started,” the company wrote in its announcement. The site’s first unit came online in late 2022, joined by the second in June 2025.

The capacity expansion at Baytown is part of a more-than $200 million investment by the company into its chemical recycling operations there, as well as at its facility in Beaumont, Texas.