A development that concretizes the concept of circular economy in the insulation material industry: Austrotherm has commissioned a recycling facility at its location in Burgenland, Austria, that feeds EPS (Styrofoam) waste from construction and demolition projects as well as from post-consumer streams directly back into the production process of new insulation boards. In doing so, the manufacturer closes a material cycle that has so far only been realized in rudimentary form in EPS processing – and at the same time provides a best-practice model for other insulation material producers in Europe.
Technical concept: From take-back to regranulation
The facility is designed to process EPS waste from both construction site scrap and deconstruction systems. Upon delivery, the materials undergo a multi-stage processing: First, mechanical shredding takes place, followed by density separation to remove foreign materials such as plaster residues, adhesive tapes, or films. The cleaned EPS is then processed into regranulate that, according to Austrotherm, can replace up to 30 percent of the raw material in board production – without compromising the material properties required by standards according to EN 13163.
Crucial for the quality of the recycled material is purity: EPS from thermal insulation composite systems (TICS) often contains plaster and adhesive residues that can negatively affect the lambda value (λ) and bulk density. Austrotherm therefore relies on pre-sorting already at the take-back stage – a logistical effort that significantly influences the economic viability of the process. Planners and executing companies planning TICS demolition should therefore already include sorted dismantling and separate collection of EPS insulation boards in the tender specifications.
Capacities and market relevance in the Central European insulation material market
Specific information on the annual processing capacity of the new facility is not currently available. Comparable facilities at competitors such as ROCKWOOL or ISOVER (Saint-Gobain) process between 5,000 and 15,000 tons of waste per year – a benchmark that also appears realistic for Austrotherm, provided the logistics for take-back are organized on a broad scale. The Austrian insulation material market has an annual EPS consumption of around 80,000 tons; a recycling rate of 10 to 15 percent would thus be a significant contribution to resource conservation.
Compared to mineral wool, which has been processed in closed loops for years, EPS recycling lags structurally behind. One reason is the fragmentation of deconstruction streams: While stone wool manufacturers like ROCKWOOL have established their own take-back systems, EPS lacks a comparable network. Austrotherm could become a pioneer here – similar to AGC in the flat glass sector – if the system is scaled and expanded to additional locations.
Sustainability balance: EPD data and carbon footprint
For assessing environmental impact, EPD (Environmental Product Declaration) data are central. EPS insulation boards typically have a carbon footprint of 4 to 6 kg CO₂ equivalents per kg of material – depending on bulk density, flame retardants, and production process. The use of recycled material can improve this balance by 20 to 30 percent, since the energy-intensive process of polystyrene production from crude oil is partially eliminated. However, the net savings are heavily dependent on transport logistics: Long delivery distances for small quantities counteract the effect.
In the context of circular construction, the recyclability of insulation materials is also an increasingly important planning criterion. EU taxonomy and national funding programs such as the German GEG (Building Energy Act) increasingly require proof of recyclability and urban mining potential. Manufacturers that, like Austrotherm, can demonstrate a functioning take-back and recycling model gain a competitive advantage in public tenders.
Comparison to other circular economy initiatives in the insulation material industry
With the new facility, Austrotherm joins a series of circular economy projects that have been launched in recent years in the insulation material and building materials sector. Etex and Heidelberg Materials established a joint fiber cement recycling program in 2024, in which boards from demolition serve as raw materials in cement production. ROCKWOOL has operated stone wool take-back systems in Germany and Scandinavia for several years, enabling up to 40 percent recycled content in new products.
In comparison, EPS recycling is technically less complex – the chemical stability of expanded polystyrene is retained even after multiple cycles – but more logistically demanding because the material has an unfavorable volume-to-weight ratio. Compaction processes on-site or mobile shredding systems could help, but are not yet widely deployed.
Implications for planners and building materials dealers
For architects and design engineers, the availability of recycled EPS represents an expanded material palette for sustainability-oriented projects. In tenders, the percentage of recycled content should be explicitly specified and documented via EPD data. Additionally, it is advisable to check whether the manufacturer offers a take-back system – a criterion that is positively evaluated in DGNB or LEED certifications.
Building materials dealers can build their own take-back logistics through cooperation with manufacturers like Austrotherm and thus offer an additional service. In particular in the area of energy-efficient renovation, where large quantities of old insulation are generated, there is a growing market for sorted dismantling and recycling.
Outlook: Scaling and regulatory framework
The long-term impact of the Austrotherm facility depends on whether the model is transferred to additional locations. The expansion in Romania shows that the manufacturer is expanding in Eastern Europe – a region where EPS insulation is growing rapidly, but recycling structures are still underdeveloped. Implementing circular systems already during capacity expansion would be a strategic advantage.
Regulatory pressure on manufacturers will continue to increase: The EU Waste Framework Directive requires a 70 percent recycling rate for construction and demolition waste by 2030. EPS is among the fractions with high potential, provided collection and sorting are optimized. Austrotherm has taken a step in the right direction with the commissioning of the recycling facility – now it is up to scale the infrastructure and encourage other market participants to follow suit.
