The foreign expansion of Polish companies is increasingly going beyond traditional commercial and financial objectives. In addition to entering new markets and increasing revenues, it is becoming important to take a strategic position in global trends, first and foremost in the circular economy. Well-designed investments make it possible to build an international position and implement sustainable development goals at the same time. The Foreign Expansion Fund, managed by PFR TFI, actively supports Polish companies in this area, as exemplified by investments carried out with Recykl Group and Sanok Rubber Company.
Circular economy as an element of expansion strategy
The circular economy is no longer just a fashionable slogan but is becoming the foundation of modern business strategies. This concept, based on minimising waste and maximising the use of resources, opens up new opportunities for companies. Enterprises that embed circular economy principles in their operating models gain a competitive advantage, optimise costs and build a positive image among customers and investors.
This model enables significant savings in raw material use, lower production costs and greater independence from price volatility and the availability of virgin materials. In this context, foreign expansion becomes a tool for implementing and scaling environmentally oriented solutions at the international level. An increasing number of Polish companies are taking advantage of this opportunity by acquiring entities or building plants in Europe.
“Co-financing the foreign expansion of Polish companies is one of the pillars of our activity. Projects that combine business ambitions with environmental responsibility are of particular importance to us. Investments in the recycling and sustainable production sectors are strategically important because they are part of the global economic transformation. By supporting them, we not only strengthen the competitiveness of enterprises, but also contribute to building a more sustainable future for the Polish economy,” says Piotr Dmuchowski, President of the Management Board of PFR TFI.
Recykl Group: acquisitions on mature tyre markets
Recykl Group is an excellent example of a company combining international growth with a sustainable approach. The company, a leader in the end-of-life tyre recycling sector in Central and Eastern Europe, decided to enter mature European markets through acquisitions. Recently it obtained financing from the Foreign Expansion Fund to acquire the German company Harzer Reifenhandel und Verwertung (HRV) and the Lithuanian UAB Antrinio Perdirbimo Grupė (APG).
The implementation of the expansion plans is expected to deliver tangible benefits to Recykl Group in several areas. Germany is the largest market in Europe for end-of-life tyre management, and direct presence there makes it possible to reach new customers and scale operations in the western part of the continent. At the same time, acquiring entities with their own collection systems, such as HRV, helps secure access to feedstock, which is of key importance in the recycling industry. In-house collection systems ensure stable supplies and support efficient utilisation of processing capacity, including at plants located in Poland. In addition, the acquisitions strengthen the company’s regional position and open the way for further expansion.
“Our role is to provide flexible financial instruments that enable Polish companies to carry out ambitious projects outside the country. Cooperation with Recykl Group is a model example of how capital can support strategic objectives. By financing acquisitions in Germany and Lithuania, we are helping to build a regional champion in a sector that is an important component in developing a circular economy,” emphasises Piotr Dmuchowski.
Thanks to these investments, Recykl Group is increasing its processing capacity and actively contributing to the creation of a closed loop for end-of-life tyres. Rubber granulate and other products generated in the recycling process are reintroduced to the market and used, among others, in construction, sports infrastructure and the production of consumer goods.
Around 3.4 million tonnes of end-of-life tyres are processed each year in Europe. Due to the lack of natural degradation, professional treatment and recycling are essential. According to data from the European Tyre and Rubber Manufacturers’ Association (ETRMA), last year alone more than 223 million tyres for passenger cars, SUVs and light commercial vehicles were sold. A further almost 11.3 million units were tyres for trucks and buses, and more than 710,000 tyres were supplied for agricultural applications. This still does not exhaust the entire market.
Tyres are designed for long service life, and their life cycle can be extended through retreading, recycling and material recovery. This translates into reduced waste volumes, efficient resource management and job creation. The value of the tyre recycling market in Europe in 2024 was estimated at around USD 3.72 billion, with a share of about 30% in the global market.
Sanok Rubber Company: diversification and research projects
The example of Sanok Rubber Company shows that growth potential relates not only to waste processing, but also to production in traditional industries. For several years, Europe’s processing industry has been seeking its role in a changing economy, and one of the responses has been integration with circular economy principles and sustainable production.
Sanok Rubber Company is a European leader in the production of rubber products, rubber-metal components and rubber combined with other materials. The company’s products are used, among others, in the automotive, construction, agriculture, pharmaceutical and household appliances sectors. Last year the company from Sanok acquired the Finnish industrial hose manufacturer Teknikum. The financial partner in the transaction was the Foreign Expansion Fund.
From the perspective of Sanok Rubber Company’s long-term strategy, both in terms of product and geographical diversification, the acquisition in Finland was of significant importance. The direction of expansion was also important for PFR TFI. Finland is one of the most innovative countries in the world, with a reputation for a stable economy and an attractive business environment. “This is one of the directions where, as a Fund, we see potential for the growth of Polish companies,” says Piotr Dmuchowski.
The transaction shows that foreign expansion does not have to mean merely acquiring competitors. It can take the form of strategic partnerships that strengthen innovation potential and enable the exchange of know-how in sustainable production. Teknikum specialises, among other things, in industrial hoses for purification systems used in the mining industry, which complements the portfolio of Sanok Rubber Company. The operations of both the Polish company and the acquired entity are focused on sustainable growth. The production of durable rubber products used in many branches of industry is an important component of an economy based on efficient resource use.
In parallel, Sanok Rubber Company is working on the use of waste from tyre recycling in the production of rubber compounds. Research has confirmed that properly processed tyre-recycling waste can be used to manufacture high-quality rubber compounds and a wide range of technical products. In June this year, the company launched a research project entitled “Development of innovative rubber compounds based on devulcanised waste for use in the production of body seals for the automotive industry”. A key element of the R&D work is the development of innovative EPDM rubber compounds with the addition of devulcanisate obtained from production waste generated in the manufacture of body seals.
This approach is in line with circular economy assumptions, enabling the internal management of waste streams within the company’s value chain and creating the basis for reducing the demand for virgin raw materials.
Development capital for circular economy projects
The examples of Recykl Group and Sanok Rubber Company show that Polish enterprises can successfully compete in international markets while playing an important role in the transition towards a circular economy. However, the implementation of such projects requires appropriate capital backing and advisory support.
The Foreign Expansion Fund plays a key role in this process. By providing financing that enables the implementation of ambitious expansion plans, the Fund supports projects aligned with the circular economy concept. In doing so, it contributes not only to building the value of Polish enterprises, but also to shaping a more sustainable economic future for Europe. Expansion carried out in the spirit of the circular economy delivers benefits on several levels: for businesses, the economy and the environment.
