Tomra Systems ASA signed an agreement with Plastretur AS to create a plastic packaging sorting plant located in Norway. TOMRA will invest EUR 32 million through a joint venture where TOMRA will hold a 65% ownership stake and Plastretur AS will hold a 35% ownership stake. The strategic investment is part of TOMRA's Feedstock business venture, which seeks to close the gap in plastic recycling by using TOMRA's core knowledge and technology.

The plant will accept municipal -sourced separated and mechanically recovered plastics from mixed waste. It will be sorted into high-quality fractions ready to be used in new packaging and other high-quality products. Plastretur AS will be responsible for sourcing plastic packaging waste as input while TOMRA will be responsible for grading the recovered plastic fractions based on type, and for selling the output material.

The new plant will be built near Oslo in Holtskogen Nringspark, Østfold, Norway with a total sorting capacity of 90,000 tons of plastics per year. The plant is scheduled to be fully operational in the first quarter 2025. The investment will support TOMRA in achieving its vision of leading the resource revolution and delivering on the strategic ambitions presented at the Capital Markets Day in 2022.

The capital investment consists primarily of machinery and equipment. TOMRA is targeting profitability levels comparable with the rest of the business and capital return levels of 15%-20%.