Syklo investing in circular ‘hub’ for plastic recycling, biocomposite production

 Finnish circular economy company Syklo Ltd. says it is progressing with a plan announced in 2024 to establish a “circular economy production hub,” combining advanced plastic recycling and biocomposite manufacturing. The company says the facility’s production methods support carbon neutrality and minimize energy consumption.

Syklo says its investment of 70-80 million euros ($73.3-$83.8 million) in Hyvinkää, Finland, will create a unique circular economy hub that it expects to begin operations in early 2026.

“Syklo’s mission is to create a more sustainable world where materials are recycled, not incinerated,” says Teemu Koskela, the company’s CEO. “This investment significantly reduces landfill waste and fossil-based plastic dependency and prioritizes high-quality postconsumer recycled plastics and biocomposites. We are not only transforming Finland but also shaping the European market and the global circular economy.”

Syklo claims its project will boost Finland’s plastic recycling capacity by 50 percent. For the plastic recycling plant, the company has partnered with Scotland-based Impact Recycling, which brings two patented technologies to the process, including one that enables the separation of black plastics 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,” Impact CEO 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.”

Syklo says Impact’s patented technologies ensure the superior quality of Sykloplast recycled plastic pellets compared to standard market alternatives. The advanced postconsumer resins (PCR) can be used in applications previously unsuitable for recycled materials, offering consistent quality and a lower CO₂ footprint. Syklo says the new facility will process 50,000 tons of plastic annually.

Integrated production

Syklo says the joint facility unlocks synergies for higher-value production. Sykloplast recycled plastic pellets will serve as a raw material for the adjacent biocomposite plant, a move the company says will reduce transportation emissions and improve 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 Skylocomp 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.”

Syklo says the biocomposite plant will use its patented wet-web technology, which preserves cellulose fiber length, enhancing material strength and durability. A closed-loop system recycles water and wastewater, ensuring a low environmental footprint. The company adds that its Syklocomp biocomposites offer a climate-friendly alternative to conventional plastics, lowering CO₂ emissions.

The company says Syklocomp can be applied as a reinforcement for plastics across various sectors, including packaging, electronics and transportation. Syklo provides polypropylene (PP) and polyethylene (PE) masterbatch grades as well as customized solutions for specific industry needs. Syklocomp can use both PCR and recycled fibers as raw materials.

With exports driving growth, Syklo says it is intensifying its global expansion, focusing on Europe, Asia and the United States.

“Our strategy is centered 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.”