Plastic Recycling Crisis Hits! Germany's Wipa Becomes First Machinery Manufacturer To File For Bankruptcy

German plastic recycling equipment manufacturer Wipa Werkzeug- und Maschinenbau GmbH has filed for bankruptcy.

The company is located in Stadtlohn, a city in the western Münsterland region of Germany, near the Dutch border. Wipa initiated temporary insolvency proceedings on October 1st, which was a week before its planned appearance at the 2025 K Trade Fair in Germany.

Wipa stated that the reason for applying for bankruptcy is due to a weak industry environment, declining sales, and rising costs. The performance of the new equipment business was below expectations, while high inventory levels occupied a large amount of liquidity.

"The current situation is undoubtedly very challenging," said the company's general manager, Johannes Wissing. "We need to adjust costs and also require an investor who can help get the company back on track. We hope to ensure that the long-term operations of the business continue to run well in the future."

Wipa was established in 1994 and specializes in manufacturing equipment for the plastic recycling industry. Its product range includes compactors, dryers, sorting machines, silos, shredders, and granulators.

The company currently has about 70 employees and is still in normal production. The designated bankruptcy management team is evaluating all restructuring options and seeking investors. On October 2, employees were informed that their wages during the bankruptcy proceedings would be guaranteed.

In recent years, several German plastic recycling companies have exited the market, but in the current industry crisis, Wipa is the first equipment manufacturer to file for bankruptcy.

According to data from the Plastics Recyclers Europe (PRE), the loss of plastic recycling capacity in Europe from January to July 2025 has almost equaled the total for the entire year of 2024.

The capacity loss this year so far is three times that of 2023.

According to PRE's predictions, after years of rapid expansion, the net growth of new plastic recycling capacity in Europe will reach zero by 2025. Since 2021, the growth rate of capacity has begun to slow down: in 2023, the installed capacity for plastic recycling increased by 6% year-on-year, compared to a growth rate of 10% in 2022 and 17% in 2021. PRE forecasts that this decline in growth will severely threaten Europe's ability to meet the recycled content targets set out in the Packaging and Packaging Waste Regulation (PPWR).