Business Forum • 8 November, 2024 at 11:31 AM
Polish company Elemental Group, a global leader in urban mining, has entered the Romanian market by acquiring a majority stake in ACC Recycling Services and announced a €19.84 million investment to build an electrical and electronic waste (WEEE) recycling plant near Deva, in Hunedoara County.
The project was presented today at a press conference attended by key officials, including His Excellency Paweł Soloch, the Polish Ambassador to Bucharest. Romania's government was represented by Alina Jalea, Secretary of State for Energy Transition and Climate Change, and Bogdan Balanișcu, State Secretary in the Ministry of Environment, Waters, and Forests.
The Romanian company ACC Recycling Services was represented by CEO Cristian Pocol, while Elemental Group was represented by Darius Slawek (Head of International E-Waste Business Development), Leszek Papciak (Administrator of ACC Recycling Services SRL), Slawomir Baran (Head of the Mergers & Acquisitions Department at Elemental), and Sylvester Puczen (Head of Communication at Elemental).
Laying the foundation for a new recycling industry in Romania
This investment arrives at a crucial time as Romania aims to develop a recycling industry for waste electrical and electronic equipment, funded through the European Union's National Recovery and Resilience Plan (PNRR). The total project value is €19.84 million, of which €8.4 million is expected to come from non-repayable PNRR funds, with the remaining €11.44 million plus VAT provided directly by Elemental Group.
Located in Lăpugiu de Jos, 30 km from Deva, the new recycling facility will span 16,447 square meters, including a 1,600-square-meter storage area and 10,000 square meters of concrete platforms. The initial WEEE recycling plant project was developed by ACC Recycling Services SRL under CEO Cristian Pocol, who subsequently sold an 80% stake to Elemental. Currently, Cristian Pocol retains a minority 20% stake.
The industrial park for waste management and WEEE recycling is scheduled to open in June 2026. The facility will be equipped with fully automated machinery for processing electronic waste, including cooling equipment (refrigerators), with a maximum processing capacity of 4.5 tons per hour, creating 36 new jobs.
Romanian Government's message and support from State Institutions
At the conference, State Secretary Alina Jalea conveyed an official message from Romania's Prime Minister, Marcel Ciolacu, emphasizing the importance of this investment for developing a green industry in Romania.
“Today marks a truly important step towards a more responsible future. Elemental Group's vision aligns perfectly with the Romanian government's goals of promoting the circular economy and innovation. This is also reflected in the €8.4 million grant you are eligible to receive from the National Recovery and Resilience Plan for the future plant in Deva. By combining cutting-edge technology and expertise, we are transforming waste into valuable resources. I encourage all entrepreneurs in Romania to follow this path and invest in innovative solutions,” stated Prime Minister Marcel Ciolacu.
Through a video message, Mircea Fechet, Minister of Environment, Waters, and Forests, noted that Romania is at a critical stage in developing the WEEE recycling industry, supported by PNRR funding.
“I congratulate Elemental Group for choosing to invest in Romania! We need these kinds of investments and new jobs. This investment is exceptional for our country. The Ministry of Environment, Waters, and Forests supports circular economy investments through PNRR, with €220 million allocated for new recycling plants in Romania, providing up to €8.4 million per project. We look forward to seeing the new plant begin WEEE recycling as soon as possible,” said Minister Fechet.
Representing the Ministry at the press conference, State Secretary Bogdan Balanișcu added: “We are delighted you chose Romania and this particular recycling sector. On a national level, we currently need 4-5 times more recycling capacity than we have. With your presence, Romania will increase its recycling capacity, reduce waste exports, and recycle more domestically. Investments in recycling bring economic benefits, and we are fully committed, financially and procedurally, to supporting those who want to invest in environmental protection.”
Pawel Soloch, Polish Ambassador to Bucharest, emphasized the importance of expanding Polish investments in Romania, especially in new areas like WEEE recycling.
“This investment is significant in the context of Polish-Romanian relations—two of the fastest-growing economies, not only in the region but also across the European Union. Congratulations, Elemental Group, on this initiative! Wishing you much success!” said Ambassador Soloch.
According to the National Trade Register Office, as of December 31, 2023, 1,643 Polish companies were registered in Romania, with a total direct investment capital of €344.9 million. Poland thus ranks 19th among foreign investors, accounting for 0.71% of Romania's total foreign investment.
Messages from the investors
Speaking on behalf of Elemental Group, Slawomir Baran, Head of the Merger & Acquisition Department, emphasized that entering the Romanian market is timely and strategic. Elemental's expertise will be essential in advancing Romania's recycling capabilities.
“Romania is one of the largest markets in Central and Eastern Europe, with growing economic potential. Our decision to invest here aligns perfectly with our growth strategy in Europe in the e-waste segment. I am confident this will help support sustainable practices in the region. We are excited about the opportunities ahead and are committed to making a positive impact in Romania,” said Slawomir Baran.
Elemental Group's entry into the Romanian market was made possible through the acquisition of 80% of ACC Recycling Services SRL, a Romanian company founded by Cristian Pocol in 2021.
“I was one of the pioneers in establishing the WEEE recycling industry in Romania, so this project represents a natural evolution of my work. Romania needs numerous strategically located WEEE recycling facilities across the country, and the PNRR project is a huge opportunity that our country must leverage. Since 2021, we at ACC Recycling Services have initiated this project and secured all necessary permits. I am pleased to have achieved this partnership with the Polish Elemental Holding and attracted such a significant investment to the Romanian market,” said Cristian Pocol, CEO of ACC Recycling Services SRL.