According to data from the United Nations Conference on Trade and Development (UNCTAD), Polish foreign direct investments (FDI) reached a record-high USD 10.4 billion in 2023. This marks a 64% increase compared to the previous year and a 228% increase compared to 2021. Additionally, the ratio of Polish outward FDI to inward FDI stood at 36%, the third-highest result in history. In other words, Poland is evolving from a capital-absorbing economy to a significant international investor. This trend is exemplified by Elemental Group (GE), founded in 2010 in Grodzisk Mazowiecki, which is now a global leader in recycling and urban mining.
The numbers speak for themselves: the Elemental Group currently consists of 57 companies operating in 35 countries, with total foreign investments amounting to approximately PLN 3.315 billion.
Mergers and Acquisitions Drive GE’s Growth
Elemental Group has spent over PLN 1.2 billion on 17 major international mergers and acquisitions to date.
“Acquisitions must align with the Group’s strategy. The company should be well-organized and in a good financial position. It also needs to be attractively valued. We place great importance on the quality of the management team and growth prospects,” explains Paweł Jarski, CEO of Elemental Group. “Most of our acquisitions are ‘friendly,’ as we aim for synergy. We typically don’t purchase 100% of shares initially, preferring the former owner to continue working with us. We believe future success largely depends on the quality and satisfaction of the management team, so we always nurture these relationships.”
Elemental Group’s first international acquisition took place in 2015 with the purchase of EMP Recycling in Lithuania. The Group then expanded into Finland, the UK, Germany, and Asia. Recent 2023 acquisitions include a 51% stake in a joint venture with Romco Group (covering Nigeria, Ghana, and the UAE) and an 80% stake in ACC Recycling Services in Romania. The Romanian investment, amounting to EUR 19.84 million, will establish a refrigerator and household appliance recycling plant near Deva in Hunedoara County.
Since 2019, Elemental has been active in the United States, where the company achieves its highest revenues. “We have acquired four recycling companies in the U.S. and have consolidated the market to some extent. Considering the volume of collected catalysts, we are now the No. 1 player in this market globally,” says Sławomir Baran, Head of the Mergers & Acquisitions Department at GE.
Regarding future acquisitions, Baran adds:
“We are closely monitoring companies in the U.S., Africa, Asia, and South America. We are always looking for firms that fit our Group’s strategy.”
E-Waste: A Valuable Resource
One of the main challenges for Elemental Strategic Metals (ESM) in Zawiercie — GE’s flagship facility — is access to raw materials. ESM sources critical elements from 80 locations worldwide, including 33 locations in 16 U.S. states. According to the Global E-waste Monitor, over 50 million tons of electronic waste are generated annually, projected to rise to 74 million tons by 2030.
“At Elemental Strategic Metals in Zawiercie, we focus on processing materials from recycling catalytic converters, specifically platinum group metals (platinum, palladium, and rhodium). Our investment has vertically integrated this business line — from collection and initial processing to smelting and refining. The amount of e-waste globally is enormous, and we intend to grow this business further,” explains Paweł Jarski.
The next strategic step for Elemental is to build a copper and printed circuit board (PCB) smelting plant in Zawiercie. The investment process and financing arrangements are already underway. Jarski also notes that while the rare earth metals market is still in its early stages, GE is carefully observing it and may consider acquisitions when the time is right.
Can Elemental Group Support Europe’s Supply Chain?
Michał Zygmunt, President of Elemental Strategic Metals, highlights the importance of critical raw materials in the global economy. The supply chains for these resources are concentrated in a few countries, particularly China. With growing demand for clean and modern technology, securing these materials is crucial.
To strengthen GE’s position amid the geopolitical dynamics of China, the U.S., and Europe, Jarski emphasizes the need for vertical integration and strategic investments in smelting facilities in the U.S. “Given the potential for increased trade barriers between these economic zones, we must control more of the processing chain,” he notes.
A recent Arup report, “Critical Raw Materials Guide,” identified six strategic raw materials essential for the energy transition: cobalt, copper, graphite, lithium, nickel, and rare earth metals. The EU remains heavily dependent on China, which dominates the production and processing of these materials.
Jarski concludes:
“While recycling cannot fully solve the issue of China’s dominance, it can significantly reduce pressure on the U.S. and the EU. Supporting the development of local recycling capabilities is crucial, and Elemental Group is well-positioned to contribute to this trend.”
A Polish Global Leader
Despite its international presence, Elemental Group continues to invest strategically in Poland, particularly in Zawiercie. As Jarski puts it: “If we don’t invest in Poland, who will?”
Source: ManagerPlus
