Clipped from Discord (September 2025) - State of the Nation - Nexam Chemical

The core is Reactive Recycling®, a technology that makes it possible not only to recycle plastic - but to upcycle it. With Nexam's additives, even difficult streams (PET, PP, PE) can be refined into materials with properties that, in many respects, match virgin plastic regarding end-product quality. This has made the technology highly attractive to a growing group of major customers with clear sustainability goals who require high quality for processes such as film blowing, extrusion blow molding, and advanced packaging.

The business model is also scalable: Nexam sells additives that are added in small doses (0.5-5%), but with a high price per kilogram and ~50% gross margins. Approximately 35% of top-line growth flows down to the bottom line. With a rapidly diversifying customer base - both in number and across industries - and production currently running at only about 50% capacity, there is an opportunity to double revenue without significant capex investments.

This is further reinforced by a strong patent and IP portfolio covering approximately half of all virgin plastic globally. This creates barriers to entry and provides Nexam with a unique strategic position in an industry where regulatory pressure, customer demands, and cost savings all point in the same direction: more recycling, higher quality, lower cost.

Summary:
Reactive Recycling® is already in commercial operation with major customers and is growing rapidly. With scalability, high margins, a broad customer base, and strong IP, Nexam is positioned where profitable growth can accelerate significantly - and the company is establishing itself as a player in the global circular plastics industry.