Syklo opens Finland's largest recycling plant

Syklo Group has opened its complete circular economy hub in Hyvinkää, Finland, combining the country's largest plastic recycling plant with an industrial-scale biocomposite facility. The EUR 70–80 million complex started operations on 9 September 2026. It will produce Sykloplast recycled plastic pellets and Syklocomp biocomposite for demanding applications in the automotive, packaging and electronics industries.

The plastic recycling plant can process 50,000 tonnes of plastic waste annually, including material that would otherwise be incinerated or sent to landfill. According to Syklo, the facility increases Finland's plastic recycling capacity by 50% and reduces the country's calculated greenhouse gas emissions by more than 100,000 tonnes of CO2 equivalent per year.

"Our goal is to grow circular economy as one of the leading areas of Finnish export. Finland’s recycling rate has long been among the weakest in Europe. With this investment, we are turning the direction for the whole country. Our ultimate mission is to build a more sustainable world, where materials are kept in circulation. Now is exactly the right time to help create the circular economy market. The EU’s newly approved End-of-Life Vehicles Regulation and the PPWR are strengthening demand for recycled materials even further," says Teemu Koskela, CEO of Syklo Group.

Sorting and refining for demanding applications

The recycling process is designed for extensive sorting and refining and uses a closed-loop water system. At the sorting stage, the plant applies patented technology supplied by Scottish partner Impact Recycling. Based on small differences in density, the system can separate black plastics from mixed plastic streams, addressing a long-standing technical challenge for the recycling industry.

Syklo developed the plant's overall concept, refining process and quality assurance using its own expertise. The resulting Sykloplast recycled plastic pellets are intended to provide consistent quality and technical performance for demanding applications, including uses in which recycled plastics have previously not been suitable.

The biocomposite facility operates alongside the recycling plant and uses Syklo's patented wet-web technology. The process preserves the length of cellulose fibres to improve material strength and operates with a closed water circuit. Syklocomp biocomposite is designed to replace glass fibre, talc and technical plastics in the packaging, electronics and transport equipment industries. The facility has an initial finished-product capacity of 8,000 tonnes per year.

The integration of the two plants is central to the hub's operating concept. Sykloplast pellets produced by the recycling facility can be used directly as raw material at the neighbouring biocomposite plant. This arrangement reduces transport costs and supports control over final-product quality.

The hub creates more than 100 jobs in Hyvinkää, including laboratory technician and process operator positions. Both plants will operate in three shifts. Syklo is targeting export markets with its products and plans to expand beyond Finland through additional production facilities.

Biocomposite selected for Amazon evaluation

Syklocomp has been selected from hundreds of applicants for the 2026 Amazon Devices Climate Tech Accelerator program. Under the program, the material will be evaluated for possible use in Amazon devices and their manufacturing processes.

The program seeks methods of reducing the carbon footprint of components used in Amazon consumer electronics. The evaluation will cover processing behaviour, mechanical performance and the reliability of supply at industrial scale. For Syklo, the selection coincides with the launch of the hub's full production capacity and supports its objective of supplying materials to the global device industry.

EU rules to increase recycled-content demand

In June 2026, the European Parliament gave final approval to the End-of-Life Vehicles Regulation, which the Council of the EU formally confirmed on 29 June 2026. The regulation introduces mandatory targets for recycled plastic content in new vehicles. At least 15% of the plastic used in new vehicles must be recycled within six years of the regulation entering into force, with the share increasing to 25% within ten years.

The EU Packaging and Packaging Waste Regulation, known as PPWR, became applicable on 12 August 2026. It establishes mandatory minimum recycled-plastic shares for plastic packaging, ranging from 30% to 65% depending on the product category. The requirements will be phased in from 2030.

These regulations are expected to create additional demand for consistent-quality recycled plastics and recycled reinforcement materials. Syklo is positioning Sykloplast and Syklocomp for technical applications in the automotive and packaging industries, where mandatory recycled-content requirements are set to increase demand for certified recycled raw materials.