Recyclable Foam Gets a €100m Boost From Borealis

Austrian chemicals group to triple Daploy™ output in Germany by 2026 as EU rules tighten on packaging waste

10 Jun 2025

Borealis is investing more than €100mn to expand production of its recyclable polypropylene foam, Daploy™, at its Burghausen site in Germany, in a move aimed at capturing a larger share of Europe's sustainable plastics market.

The Austrian chemicals group said the project, announced in June, would triple output by the second half of 2026. The expansion comes as the EU's proposed Packaging and Packaging Waste Regulation (PPWR) sets stricter requirements for recyclability by 2030, pushing manufacturers to adopt alternatives to hard-to-recycle foams.

Daploy™ is a high-melt-strength polypropylene foam that can be recycled through existing systems. Lightweight and durable, it can replace conventional foams in packaging, automotive parts and insulation, many of which face phase-outs under new environmental laws.

By scaling production, Borealis aims to secure long-term contracts with manufacturers redesigning products for a circular economy. "This is not just an equipment upgrade but a positioning move ahead of regulation," said one industry analyst, noting that the German site allows for fast delivery and product customization across Europe.

The initiative reflects a wider shift in the plastics sector toward single-material solutions that simplify recycling. Market observers say the move could pressure competitors to accelerate their own upgrades. But challenges remain: differences in foam density and additives can complicate sorting, while cost competitiveness will influence adoption against cheaper legacy materials.

Borealis expects the investment to support regional recycling systems, reduce reliance on imported foams and help customers meet sustainability targets. The group is also exploring the integration of recycled content into future foam products.

If successful, analysts say the expansion could set a benchmark for innovation and compliance in the plastics industry, encouraging further investment across the region.