Recykl Group, the largest entity in the used tire management sector in Central and Eastern Europe, is entering a period that the management board describes as a time of change and stabilization. In the coming quarters, the company intends to focus on finalizing the acquisition of the German company HRV and flexibly integrating it into the processing chain together with the Lithuanian company APG, which already belongs to the Group. At the same time, a new production line for the Smapol additive for mineral-asphalt mixtures is planned to be launched at the Chełm plant, which is intended to increase manufacturing capacity in response to growing interest from road construction companies. The company also announces the publication of an updated development strategy, which is to systematize the key directions of activity, including M&A, ESG and HR areas, the expansion of the collection network and new applications for secondary raw materials and high value-added products.
Market outlook and macroeconomic conditions
The president of the management board of Recykl Group, Maciej Jasiewicz, assesses that the macroeconomic environment will remain relatively stable in the coming quarters, with continued inflationary pressure. "Looking at the macroeconomic situation, I am convinced that the market environment in the coming quarters may be similar to that recorded in 2025, that is neutral and stable with some persisting inflationary pressure. In Recykl Group, however, in 2026 we assume generating better financial results year on year. They will be supported by internal factors such as the expected higher scale of sales of selected products and services, and external factors, the stabilization of energy costs supported by the expansion of PV farms, falling interest rates affecting financial costs, although nominal debt will not be lower due to the financing of M&A transactions or other planned investments, for example in the further expansion of the collection network," he emphasizes.
At the same time, Recykl Group experts point out that the used tire management sector still faces a number of dysfunctions, both legislative and market-related, which limit the possibility of fully utilizing the existing production capacity. In the company’s view, regulatory changes may be crucial for improving operating conditions in the sector, including the stability of the feedstock stream and the long-term profitability of investments in tire processing.
Proposed legislative changes and their impact on the sector
Recykl Group sees positive signals on the part of the regulator. "We obviously see changes, especially on the legislative side, and there are reasons for optimism. In the fourth quarter of 2025, the Ministry of Climate and Environment launched pre-consultations on amendments to the Act on the obligations of entrepreneurs with regard to waste management, which are intended to align Polish regulations with EU circular economy standards. This would be an important step for the sector, for the environment and would significantly streamline the waste issue," notes president Jasiewicz.
Discussions with the environment ministry concern primarily raising the mandatory recovery level for pneumatic tires to 95 percent, including at least 50 percent recycling. There are also plans to increase the focus on recovering used solid tires from the market, with proposed recovery and recycling levels of 80 and 40 percent respectively. The changes are also to include an update of the product fee rates. If implemented, the tire recycling sector, including Recykl Group, could benefit from more predictable operating conditions and an increase in the volume of waste directed to legal and controlled processing.
Integration of foreign assets and development of core operations
In its core operations, Recykl Group assumes further growth, with consolidation and integration with the Lithuanian company APG and the German HRV being key elements. The management expects a gradual increase in sales of selected products and services, while taking into account costs associated with development. "We should remember, however, that 2026 does not have to mean a high pace of profit growth. Development entails certain costs, although we treat a significant part of them as developmental and investment-related (M&A, ESG, HR expenditures), which we believe will be positive for the growth of the business scale and thus financial results in the medium and long term," says Maciej Jasiewicz.
The expansion of foreign assets and their flexible inclusion in the processing chain are intended to improve the use of existing infrastructure, harmonize technological standards and optimize feedstock logistics. An important element is also the further expansion of the collection network, which already comprises several thousand tire collection points across Poland.
Product development: Smapol and Elitex
On the product side, the company announces actions focused on increasing sales of the Smapol additive for mineral-asphalt mixtures. This is an in-house, innovative technology and product developed by Recykl Group, acting as a stabilizing and reinforcing additive for asphalt pavements. Smapol holds a National Technical Assessment and is classified as a construction product. A new production line for this additive is to be put into operation in Chełm, which should increase production capacity in response to growing interest from road construction companies and the expanding scale of implementations in various countries.
Recykl Group already has official representatives responsible for the promotion and sale of the Smapol additive in Poland, Lithuania, Latvia, Estonia, Sweden, Norway, Finland, Denmark and Ukraine. In addition, cooperation agreements have been signed with partners in India and Mexico for the implementation of road surface reinforcement technology using synthetic fiber. In parallel, the company is developing its second key product, Elitex, an additive for rubber and thermoplastic polymers that modifies the rheological properties of polymers and their mechanical performance.
Recykl also sees other promising directions for the development of technology for processing textile fiber from end-of-life tires. The goal is to develop effective, environmentally friendly and multifunctional additives for next-generation mineral-asphalt mixtures, as well as other high-margin products. "We will say more about them in the updated development strategy, which is currently being prepared," announces president Jasiewicz.
Technological investments and process efficiency
In recent years, Recykl Group has focused its investment and technological efforts on improving process efficiency and developing products with an environmental and circular profile. "Here, by far the most important step was the introduction, already at the tire processing stage, of contamination detection before entering the granulation line, followed by a granulate cleaning system, and finally the cleaning and classification of steel recovered from tire cords, as well as the optimization of the cutting tool servicing process," explains the president.
This approach is aimed both at improving the quality of final products and at reducing material losses and operating costs. Improvements in contamination detection, granulate cleaning and preparation of recovered steel are also important from the perspective of further use of these fractions in the chemical, petrochemical and polymer industries.
Advanced tire processing and role in the value chain
The development of advanced tire processing technologies remains a key direction of Recykl Group’s activities. This concerns both the precise preparation of feedstock for emerging applications in pyrolysis and chemical processing, and traditional applications in which controlling the content of potentially harmful substances such as polycyclic aromatic hydrocarbons (PAHs) and 6PPD is necessary.
"Unchanged for many years, the key issue around which we concentrate our activities is the development of advanced tire processing technologies to precisely prepare feedstock for emerging applications in pyrolysis and chemical processing, but also for traditional applications requiring control of the content of potentially harmful substances such as PAHs and 6PPD. I can safely say that today, alongside our own production, we also act as a supplier of raw materials for further chemical, petrochemical and polymer processing," summarizes president Jasiewicz.
In practice, this means that in addition to producing its own products, Recykl Group is becoming a link in the advanced recycling value chain, supplying appropriately prepared rubber, steel and other components as input raw materials for subsequent processing stages.
