Hera opens rigid plastics recycling plant in Modena

Aliplast, a Hera Group subsidiary specialising in plastics collection, recycling and regeneration, has inaugurated the R3GID rigid plastics recycling plant in Modena. The name stands for Recover Recycle Regenerate Plastic. The facility can process up to 30,000 tonnes of polymers per year and produce recycled flakes with properties comparable to virgin fossil-based materials and a certified purity level above 99%. Construction began in 2024, and the plant had already been operating for several months before its official opening. It is expected to employ 80 people when it reaches full capacity.

The project required total investment of €48.8 million, including €7.7 million in direct funding from Italy's National Recovery and Resilience Plan. Hera Group developed the plant to address expected growth in demand for secondary raw materials under EU legislation, including the Packaging and Packaging Waste Regulation and the End-of-Life Vehicles Regulation.

R3GID processes rigid plastic waste from municipal and industrial sources, including the automotive, cosmetics, home and personal care, consumer electronics and furniture sectors. According to Hera Group, these streams are generally not recyclable and would otherwise be directed to energy recovery or landfill. Aliplast converts them into traceable and certified polymers produced in Italy.

The recycled materials can be returned to the same industries for applications including plastic components for televisions, computers and household appliances, make-up containers, tanks, bumpers and garden furniture.

Response to demand for recycled polymers

Gilberto Pichetto Fratin, Italy's Minister of the Environment and Energy Security, said: "R3GID is a clear example of how Italy can anticipate the challenges posed by new European regulations, from the PPWR to the ELV Regulation, and turn them into opportunities for industrial growth. This plant combines Italian technology, an entirely Italian supply chain and a certified, traceable product with quality comparable to virgin raw materials. Producing secondary raw materials locally means strengthening the country's competitiveness, reducing dependence on foreign markets and making our supply chains more secure, even in the face of geopolitical tensions and price volatility. Facilities such as this benefit the country as a whole."

Orazio Iacono, Chief Executive Officer of Hera Group, said European plastics recycling capacity currently stands at 13.5 million tonnes, including only 3.5 million tonnes for rigid plastics. He added that Europe would need a further 5.7 million tonnes of recycled rigid plastics by 2040.

"Europe faces a structural gap in recycling: capacity is stagnant or declining, while new regulations will increase demand for recycled plastics with quality equivalent to virgin polymers," Iacono said. "R3GID is our response as a first mover. It provides Italian manufacturers with high-quality, locally produced materials, reducing import costs and ensuring security of supply. There is also a benefit for the country: Italy pays the European Union around €800 million each year in Plastic Tax on non-recycled plastic packaging, while the Modena plant alone could generate savings of approximately €24 million if its entire output were used for packaging."

Technology and site integration

Hera Group developed the facility using best available technologies. Nextchem, a Maire Group company, participated as technology partner and supplied its proprietary NX Replast technology for plastics upcycling.

The plant's equipment enables the production of high-purity recycled polymers and compounds intended to replace virgin fossil-based materials in higher-value applications. It can also develop materials adapted to specific functional, mechanical, aesthetic and regulatory requirements.

R3GID is located at Hera Group's industrial hub on Via Cavazza in Modena, which also includes a waste-to-energy plant and a wastewater treatment plant. Treated water is supplied to the plastics recycling process and subsequently returned to the treatment plant. Electricity generated by the waste-to-energy facility powers the new recycling operations.

This integration is intended to reduce energy costs, which accounted for around 30% of production costs in Italy's recycling sector before the energy crisis, excluding raw materials. According to Hera Group, the facility also avoids approximately 30,000 tonnes of CO2 equivalent emissions compared with production from virgin plastics, based on equivalent production cycles.

Aliplast capacity expansion

The Modena plant forms part of a wider expansion of Aliplast's recycling operations. Together with the expansion of the Borgolavezzaro facility in Novara, which recycles low-density polyethylene, and the planned acquisition of a 70% stake in LDPE specialist Kronos Polymer Polska, it is expected to double the company's recycling capacity and increase operational flexibility. The acquisition is expected to be completed by the end of 2026.

Aliplast's annual capacity for high-quality secondary plastic raw materials is expected to exceed 210,000 tonnes, while total production capacity will reach 255,000 tonnes per year. The Modena project is included in the €2 billion allocated to the circular economy under Hera Group's 2025–2029 Business Plan, from planned total investment of €5.5 billion.

Regulatory outlook in Europe

According to the information presented at the inauguration, the Packaging and Packaging Waste Regulation will require Europe to add 5.7 million tonnes of recycling capacity for rigid HDPE and PP plastics by 2040 compared with current levels. Of this amount, 2 million tonnes will be needed by 2030 to meet increasing requirements for recycled content in packaging.

The End-of-Life Vehicles Regulation is also expected to increase demand. It introduces minimum recycled plastic content requirements for new vehicles of 15% from 2032 and 25% from 2036. At least 20% of the required recycled content must come from end-of-life vehicles. As the regulation applies only to new models placed on the market, its full effect across the vehicle fleet is not expected before 2042. By then, demand for post-consumer recycled plastics is expected to reach 1.2 million tonnes.

The inauguration included presentations by representatives of Hera Group, Herambiente and Aliplast, followed by a roundtable with participants from industry and research. The event concluded with a ribbon-cutting ceremony and a guided tour of the facility.