Syklo Ltd., a Finland-based circular economy company, is set to invest over $83M million in a state-of-the-art facility that integrates plastic recycling with biocomposite production. Scheduled to begin operations in early 2026 in Hyvinkää, Finland, the facility represents one of the largest circular economy investments in Northern Europe. This initiative is expected to significantly enhance Finland’s plastic recycling capacity while advancing sustainable material production.
A key component of the project is Syklo’s partnership with Scottish firm Impact Recycling, whose proprietary BOSS (Baffled Oscillation Separation System) technology is designed to address one of the recycling industry’s biggest challenges: efficiently separating plastics with minimal density differences, including black plastics. This technology is expected to improve sorting accuracy and increase the volume of high-quality recycled materials.
To further optimize output quality, Impact Recycling’s PRE additive technology will be integrated, allowing for precise control of melt flow rate and color properties. Additionally, the facility’s advanced water management system is designed to prevent microplastic pollution, aligning with environmental sustainability goals.
Syklo’s facility will take a vertically integrated approach by using its recycled plastic pellets as raw material for their adjacent biocomposite production plant, which will have an initial capacity of 8,000 tons per year. This streamlined operation reduces transportation costs and enhances overall efficiency. The company’s proprietary wet-web technology will support the production of high-performance biocomposites, further strengthening its market position.
Syklo is positioning itself for international expansion. The company plans to supply key markets in Europe, Asia, and the United States, focusing on industries where regulatory requirements and consumer preferences are shifting toward circular economy solutions.
Syklo’s CEO, Teemu Koskela, highlights the facility’s competitive advantage, noting that its processes enable 20% higher plastic recycling efficiency compared to conventional methods. This investment aligns with the company’s long-term goal of scaling high-quality recycling solutions and supporting global circular economy initiatives.
