Plastic Recycling : Sirmax celebrates 60 years and announces new investments of €30 million

Sirmax Group, a company specializing in the production of thermoplastic granules for a range of industries including automotive, appliances, electronics, construction, and furniture, celebrated its 60th anniversary at its Cittadella headquarters. The company, led by President and CEO Massimo Pavin, marked this milestone with a special event attended by notable guests such as Luca Zaia, President of the Veneto Region; European Parliament member Elena Donazzan; Leopoldo Destro, President of Confindustria Veneto Est; Massimo Bitonci, Undersecretary for Enterprises and Made in Italy; Antonio De Poli, Senate Quaestor; Roberto Marcato, Regional Minister for Economic Development; and Luca Pierobon, Mayor of Cittadella.

The morning event reflected the journey of Sirmax, which began in 1964 with the establishment of Sirte on Isola Vicentina. In 1999, Sirte, founded by Lorenzo Coppola, was acquired by Maxplast, a company founded in 1992 by the enterprising Pavin brothers, Massimo and Roberto. The merged company was renamed Sirmax and quickly became a major player on the world market by diversifying production, stepping up technological research and expanding into new business sectors such as household appliances, automotive and electronics.

International expansion has been a defining feature of the company's history. After opening a new plant in Tombolo (Padua) for the production of various technical polymers, Sirmax began its globalisation journey in the 2000s. In 2006, it opened a greenfield plant in Kutno, Poland, followed by a facility in Jundiaí, São Paulo, Brazil in 2014 and another in Anderson, Indiana, USA in 2015. Expansion continued in India in 2017 with a joint venture with Autotech Polymers, part of the Tipco Group, a long-established company specialising in the white goods and automotive sectors with plants in Valsad (Mumbai) and Palwal (Delhi). This alliance, called Autotech Sirmax, has enabled the Group to establish a presence on the Asian market. In 2019, Sirmax inaugurated its second plant in Kutno, and in 2022, the second plant in Anderson was officially launched.

In 2019, Sirmax also began to invest in the circular economy with the acquisition of Microtec, a Venice-based producer of compostable and biodegradable compounds, and Società Europea di Rigenerazione (SER) of Salsomaggiore Terme, which operates a plant dedicated to the recycling of post-consumer waste. The company's commitment to research continued with the creation of Smart Mold, a spin-off from the University of Padua, 50% owned by Sirmax, which assists customers in component design, material selection and process optimisation.

"The history of Sirmax," said President and CEO Massimo Pavin, "is a story of unexpected opportunities and the unique qualities of the people involved. But it is also a story of keen market awareness and the courage to invest. Sirmax would not have reached its current achievements without entrepreneurial tenacity and a cohesive team capable of executing ideas and business strategies."

Sirmax is looking to the future with confidence, bolstered by a positive half-year financial report for 2024. Revenues reached €215 million, up from €200 million in 2023, driven by a 10% increase in sales volumes and an EBITDA of €24 million. These strong results are the result of four years of investment totalling €180 million, including a doubling of capacity in the US and Poland, a 10% increase in European production capacity and acquisitions in the recycled plastics (SER, now Sirmax New Life) and bio sectors (Microtec, now Sirmax). Diversification has proven to be a successful strategy for Sirmax: Today, bio-plastics - especially post-consumer plastics - account for 90% of new project volume and 10% of current revenues. In terms of sectors, automotive represents 20% of the total, of which 20% are green products.

Sirmax's geographical diversification has also been a key factor in its success. While Europe remains stagnant, Sirmax reported 20% growth in the US market in the first half of 2024, gaining new market share. The Group also grew by 10% in Brazil and India, the latter benefiting from the country's programmes to stimulate domestic production and consumption.

"Our strength lies in both product and geographic diversification," commented Massimo Pavin. "For example, while the appliance sector remains flat, we have increased our volumes by gaining market share with circular products. Another key factor behind the success of the first half of the year is our localized value chain, with short supply lines directly in the regions where we operate. This allows us to mitigate the impact of geopolitical issues, shipping costs, or trade policies."

Looking ahead, Sirmax's industrial plan for 2025-27 includes €30 million in new investments. The company's future challenges will focus on further international expansion, in line with its multi-country, multi-product strategy and a strong commitment to sustainability. Planned projects include the completion of the Group's 14th manufacturing facility in Hosur, India by 2026, in addition to the two existing Indian facilities, and further investment at the Anderson site.

"The company currently has excellent growth prospects in the US, India, and Brazil," President Pavin concluded. "Europe remains our largest market, but it is still facing challenges. Much will depend on how the European government decides to handle the regulation of incoming goods. The risk is that our companies could lose competitiveness to Asian economies unless the same environmental protection rules applied in Europe are enforced there. I have high hopes for the document recently presented by Mario Draghi; Europe will continue to play a crucial role in the global economic landscape."