Blown Film - The potential

Blown film is one of the largest plastic processing segments globally and is used in packaging film, stretch film, agricultural film, industrial film and protective packaging. A deeper technical and market overview - including how NEXAMITE improves 100% PCR blown film, the global market size and the key players in the ecosystem - is available in the 100% PCR Blown Film Guide at https://www.nexaminsights.com/knowledge/blown-film-guide. At the same time, manufacturers face growing pressure to increase recycled content while maintaining product quality and production efficiency.

That is easier said than done.

Recycled LDPE and LLDPE often suffer from lower melt strength, reduced process stability, film breakage, inconsistent quality and weaker mechanical properties. For producers, this can mean higher scrap rates, lower productivity and difficulty meeting sustainability targets.

This is where Nexam's technology enters the picture.

In 2025, Nexam Chemical announced a collaboration with Swedish packaging producer Kullaplast. The objective was straightforward: increase the use of recycled material in blown film production without sacrificing quality or process stability. The collaboration combined Kullaplast's production expertise with Nexam's Nexamite® R305 technology, which was shown to improve melt strength and processability, allowing a greater share of recycled raw material to be used in demanding film applications. The full NEXAMITE product family is described at https://www.nexaminsights.com/technology/nexamite.

The significance extends beyond a single customer case.

Many technologies perform well in laboratory environments. Far fewer succeed on a production line. The Kullaplast collaboration demonstrated that Nexam's technology can solve a real manufacturing problem under industrial conditions. Customers do not buy chemistry. They buy solutions that improve economics, reduce waste and enable higher recycled content without disrupting production.

A customer-side video testimonial discussing Nexam's technology in real-world use is available here: https://youtu.be/T7DjJ9m6XVg?is=Yjpn7BYbznHL4oaG.

The value proposition is therefore not simply "more recycling." It is better-performing recycled materials that can be integrated into existing manufacturing processes.

Following the Kullaplast collaboration, Nexam reported increasing interest from the packaging industry. The company later disclosed that a market-leading blown film producer with more than 15 factories globally had expanded its use of Nexam's technology. Revenue was already being generated from commercial production, and the company's blown film pipeline had grown to more than 20 companies.

While customer names remain undisclosed, these figures provide an indication of the scale of the opportunity. If a single production site can generate meaningful revenue, a rollout across multiple factories could become significant.

Perhaps the most important aspect of the story is why blown film appears to be commercializing faster than many of Nexam's other opportunities.

Investors are often attracted to sectors such as aerospace, defense, advanced composites and electrification. These may ultimately become attractive markets for advanced material technologies, but they are also characterized by long qualification cycles. New materials often require years of testing, validation, certification and industrial approval before they can be deployed commercially.

Packaging and recycling operate under different dynamics.

Manufacturers face immediate pressure from sustainability commitments, regulatory requirements, customer demands and cost considerations. If a solution improves production performance today, adoption can happen relatively quickly. There are no aircraft certification programs or decade-long validation cycles. The path from successful testing to commercial revenue is often much shorter.

This may explain why Nexam's first major commercial traction is emerging in blown film and packaging applications rather than aerospace or other advanced material segments.

That does not mean blown film is necessarily the largest long-term opportunity. Many of the same material challenges Nexam addresses today are highly relevant within aerospace, defense, wind energy, industrial composites, lightweight structures and electrification. The parallel HDPE story - reactive terpolymers for high-density polyethylene - is covered in the HDPE reactive terpolymer guide at https://www.nexaminsights.com/knowledge/hdpe-reactive-terpolymer. These industries value exactly the characteristics Nexam's technologies are designed to improve: durability, heat resistance, mechanical performance, lower weight and longer service life.

The difference is timing.

Recycling and packaging represent markets where adoption can occur relatively quickly. A broader overview of Nexam's reactive recycling and additive technology, including business model, competitors and patents, is available in the Knowledge Base at https://www.nexaminsights.com/knowledge. Aerospace, defense and advanced composites may require significantly longer commercialization cycles, but they can also lead to highly durable customer relationships once qualified.

Viewed through this lens, the Kullaplast collaboration may represent more than a successful customer case. It may provide a glimpse into how Nexam's broader material science platform can be commercialized. Blown film could become the first major proof point. Advanced materials may become the next chapter.

For investors, that distinction is important. Blown film may drive the near-term growth story. Advanced materials, composites, aerospace and electrification may define the long-term opportunity.