One of the largest polyethylene terephthalate (PET) recyclers in Northern Europe, PET Baltija, has agreed to acquire a leading Czech fiber producer Tesil Fibres s.r.o, a spin-off of Silon s.r.o., Sezimovo Ústí/Czech Republic.
This vertical integration transaction will subsequently increase current revenues of PET Baltija, a subsidiary of Eco Baltija, Riga/Latvia, by more than 50%, while also making it an international company. For Silon, the transaction will enable it to fully focus on both the production and development of high-quality polyolefin-based performance compounds.
Tesil Fibres has a staple fiber production capacities of 33,000 tons, approx. 150 employees and recorded sales of €27 million in 2021. The company is a primary supplier to the European market, covering industries and sectors that include automotive, hygiene, textile and furniture.
This deal will put PET Baltija on a map as a key international player for the sector. The company plans to develop Tesil Fibres further, accelerating its growth and creating real value. Through these developments, the overall volume of recycled PET will also increase. It will solidify the company as a truly international vertically integrated market player that is committed to sustainability and tackling environmental issues. This represents an interesting development and leads to become a €100 million+ revenue company.
Both, Silon and PET Batlija emphasize that part of this agreement is a detailed handover plan, primarily targeting and ensuring that there will be no changes to the current service offering that partners, customers, suppliers, employees or other key stakeholders receive.