Sustainability is a crucial focus for Tetra Pak, a global leader in food processing and packaging solutions. As the company embraces the circular economy, they are working towards reducing climate impact across their value chain and building recycling infrastructure with their partners to increase the recycling rates of used beverage cartons. As an example, Tetra Pak has joined forces with Yellow Dreams to further expand the recycling infrastructure of beverage cartons. These projects are not without challenges. To overcome them, a partnership was established with DLL, whose expertise in financing and innovation, particularly through unique operating leases, helped drive their sustainability goals forward.
Introducing the Project: Innovative Recycling with Yellow Dreams
In December 2024, Tetra Pak and Yellow Dreams announced that Tetra Pak will support Yellow Dreams with an investment of around €3 million to establish a new recycling plant in Ittervoort, The Netherlands. This facility, set to start operations in the second half of 2025, will handle the non-fibre component (polyAl) from used beverage cartons, significantly boosting the recycling capacity in the European Union (EU). PolyAl, a mix of polymers and aluminum, can be repurposed into a variety of valuable products, including injection molding, tiles, pallets, furniture, and interior design elements. The plant's strategic location near the Belgian and German borders allows it to process the entire volume of polyAl from beverage cartons recycled in Belgium and The Netherlands, and part of the volume from Germany. With an annual capacity of 25,000 tonnes, this new plant complements the existing 8,000-tonne capacity at Recon Polymers’ facility in Roosendaal, marking a significant increase in the region’s recycling capacity and contributing to a more circular economy by extending the lifecycle of resources.
Meeting the Challenge: Scaling up the use of recycled materials
Promoting the use of recycled materials is challenging due to quality concerns, economic factors, and infrastructure gaps. Navigating complex regulations also complicates efforts to increase the application of these materials in different markets. Collaboration within the industry is crucial. Although not everyone has the same ideas, there is a shared goal, and progress is being made.
Tetra Pak recognizes that while pilot projects have demonstrated the potential of these new materials, scaling them to an industrial level is another matter. “The industrial scale is far from mainstream,” Bas Gehlen, Managing Director at Yellow Dreams, acknowledged. “There are some pilot plants here and there, but at the end of the day, they may not always lead to immediate success. Scaling these efforts is challenging.”
For Tetra Pak, collaboration with DLL was critical in tackling these challenges. Frank Vandewal, Tetra Pak's Global Recycling Director, highlighted the importance of looking ahead and working with companies that are willing to take risks and invest in developing sustainable practices. “The early adopters - companies who look ahead - are creating a more stable future than those who wait,” said Vandewal. “We are already working with recycled materials and looking for ways to integrate them more efficiently. This kind of thinking is essential for driving circularity in the future.”
DLL’s Role: Overcoming Uncertainty and Supporting Innovation
While the project presented uncertainties, DLL’s financial partnership was instrumental in helping Tetra Pak navigate them. Annamaria Frontini, DLL Global Program Manager for Tetra Pak recognized that this type of project, focused on circular economy goals and new technologies, required a shift in how DLL approached risk assessments. “This is not a typical situation for DLL,” Frontini explained. “Usually, we have a clear risk framework. But in this case, many elements were not fixed or defined at the time of the discussion.”
This required DLL to adopt a more flexible approach, working to anticipate potential future scenarios. As Frontini elaborated, “We had to adjust our mindset, be open to change, and find solutions based on the evolving project details. It was a challenging but necessary shift to support projects that are not fully defined from the start.”
Despite the initial uncertainty, Bas acknowledged the essential support from DLL: “We couldn’t have started without the help of DLL and Tetra Pak. The combination was crucial to making the next step. Their determination to make this work was clear and evident.”
The Impact of Partnership: A Sustainable Future
As Tetra Pak and DLL continue their financial partnership, both parties are reflecting on the successes of the collaboration. Frank Vandewal expressed gratitude for DLL’s commitment to the partnership: “We are very grateful that DLL was willing to partner with us on this project. Beyond our usual activities, this has been a great collaboration, and we hope there will be future opportunities to do similar work together.”
Bas echoed this sentiment, reinforcing the importance of DLL’s role in enabling Tetra Pak to advance its sustainability goals: “The combination of DLL and Tetra Pak was really crucial to making this work. Without their support, we wouldn’t have been able to make the next step. Their involvement was indispensable. "
The partnership between Tetra Pak and DLL is a shining example of how collaboration can drive sustainability in an ever-changing industry. By combining Tetra Pak’s innovative approach to packaging with DLL’s expertise in financing and risk management, they are taking significant steps towards circularity. This successful collaboration has not only addressed immediate challenges but has also set the stage for future opportunities to work together toward a more sustainable future.
Through continued open communication, adaptability, and shared goals, Tetra Pak and DLL are paving the way for other companies to follow in their footsteps as they work to create a circular economy in packaging and beyond.