In the previous SektorReport Sustainability Q1 2026, we showed how recycling capacities are evolving from a downstream waste management step into an integral part of industrial value creation. This issue focuses on the technology behind it and a market that European regulators are reassessing.
Under the new EU Packaging Regulation (PPWR, Regulation (EU) 2025/40), which has been directly applicable since August 12, 2026, member states are generally required to introduce deposit-return systems for single-use plastic bottles and metal beverage containers by 2029, unless they are already achieving high collection rates. Germany is considered a European pioneer with its deposit system, established in 2003, and return rates of around 98%.
While Germany and the Nordic countries already have efficient return systems in place, expansion is still pending in numerous other EU member states. Major markets such as Spain, France, and Italy are at various stages of preparation, while Austria, Poland, and Portugal have only recently introduced their systems or are moving forward with their implementation. This is likely to further accelerate investment in take-back, sorting, and recycling infrastructure.
This opens up a growing European market for manufacturers of balers, sorting solutions, and compaction systems. German small and medium-sized mechanical engineering companies, in particular, possess many years of process and application expertise that is increasingly in demand internationally. In our Sector Insight, we examine why these providers are becoming strategically relevant acquisition targets and how this is reflected in their valuations. Read more on page 4 of the SektorReport Sustainability Q3 2026.
A concrete example is the carve-out of EUROPRESS—a manufacturer of balers for a wide variety of materials—from the Neuenhauser Group, advised by Transfer Partners, and its subsequent sale to VIDIA.
The transaction demonstrates how specialized German recycling expertise is becoming a sought-after acquisition target. Read more on page 7 of the SektorReport Sustainability Q3 2026.
Further insights into this transaction can be found in the SektorReport Industrials Q3 2026: Uptime Trumps Price – In the recycling and sorting technology sector, the installed base determines valuation and buyer interest.
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