TOMRA initiates EUR 50-60 million investment in plastic feedstock sorting

19 Dec 2022 08:00 CET

TOMRA announced today that the Board of Directors has made a positive investment
decision for the construction of a sorting facility for post-consumer plastic
material.

TOMRA seeks to enable closing the quantity and quality gaps in plastic recycling
by producing high quality plastic fractions out of plastic waste that is
typically lost to incineration and landfill. The output material can be used by
recyclers to produce flakes and pellets for applications such as packaging
material.

Starting from 2019, TOMRA has worked on developing the concept of high-quality
sorting of both separate source and mixed waste plastic at a demo facility in
Lahnstein, Germany. Here, by bringing together innovative but existing
technologies and processes, TOMRA showed that high-quality, market-ready
recyclate production was possible, regardless of the source of input material.

"Millions of tons of plastic are lost to incineration and landfill every year.
In addition, there is an increasing demand for recycled plastics both from
chemical and mechanical recyclers. Our goal is to use our expertise in sorting
to contribute to closing the circularity gap for plastics and transforming mixed
plastic waste into valuable feedstock for recyclers.", says Dr. Volker Rehrmann,
EVP of TOMRA Recycling.

TOMRA will initiate an investment of EUR 50-60 million in building a mid-scale
plant in Germany. The plant is expected to be operational between 2024 and 2025
and have a yearly capacity of 80 000 tons. The plant will be built in an
existing facility which will be rented on a long-term basis. The capital
investment consists primarily of machinery and equipment.

TOMRA will source pre-sorted mixed post-consumer plastic material otherwise lost
to landfill and incineration and upgrade it via a splitting and grading process
at the TOMRA facility. The output will consist of over 10 different polymer
fractions, both flexible and rigid plastics, which will be sold to recyclers to
be used in mechanical and chemical recycling processes. We target profitability
levels comparable with the rest of the business and capital return levels in the
low double digits given the size of the facility being mid-scale.

"The urgency has never been greater to make a meaningful impact in the
transition towards a circular economy. In June this year we presented our
updated strategy and an ambition to employ the know-how and positioning of TOMRA
to capture opportunities in this space" says Tove Andersen, President and CEO,
TOMRA. "The investment we are now making in plastic feedstock sorting is aimed
at closing the loop on plastics and reducing dependency on primary resources."

At the end of Q3 2022 the company had NOK 660 million in cash, NOK 1,426 million
of net interest-bearing debt and 48% equity ratio. A significant part of the
capital investment will take place in 2023, hence the Board considers the
company to be well capitalized to initiate the investment.

TOMRA Systems ASA

Asker, 19 December 2022

For further inquiries, please contact:

Eva Sagemo, CFO +47 934 39 911

Georgiana Radulescu, VP Head of IR +47 941 01 643.

**This information is considered to be inside information pursuant to the EU
Market Abuse Regulation (EU) No 596/2014 and is subject to the disclosure
requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

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