Recoma transforms hard-to-process composite waste, combining paper and plastic, into durable building boards that rival traditional materials. Founded by Max Rosenberg in 2021, the company has carved out a niche by tackling the construction sector’s sustainability challenges.

From Concept to Commercialization

The idea for Recoma originated nearly a decade ago when Rosenberg, then studying psychology in the Czech Republic, learned about an experimental attempt to create building boards from waste. Inspired, he shifted his focus and launched Recoma upon returning to Sweden.

Initial years were spent obtaining certifications and proving the concept in the conservative construction industry. While the company gained momentum, launching at scale in February 2023 was fraught with challenges, including rising energy costs, construction slowdowns, and high interest rates, Max Rosenberg says in an interview with Impact Loop.

Strategic Funding and Climate Support

The funds will help secure an additional €2.9 million grant from Sweden’s Klimatklivet program, intended to double production capacity. Under Klimatklivet’s terms, Recoma must demonstrate it has the remaining 35% of matching funds by November 2024.

“We have South Bay Ventures with Rickard Dahlberg from NREP (a real estate company, editor’s note), Kiilto Ventures, former Skanska CEO Gunnar Hagman, and Byggmax with us from before. In this round, GES, a Czech industrial group and one of our suppliers, has also joined,”

says Max Rosenberg to Impact Loop

Recoma reported € 385,000 in net revenue for 2024 but faced a loss of € 1.1 million due to significant early-stage investments in machinery. The company plans to triple sales in 2025 and achieve profitability by 2027. Looking ahead, Recoma is preparing for international expansion and plans to pursue European venture capital financing in 2025.

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“We are extremely pleased and grateful for the support from Climate Step. This grant will allow us to scale our production capabilities and develop new products that further reduce the construction sector’s climate footprint. This funding is a testament to the confidence in our recycling technology and our commitment to sustainability.”

stated Max Rosenberg, CEO of Recoma earlier this summer.

The investment will be utilized to install an additional production line in the company’s Hässleholm facility. This new line will have a capacity 1.5 times greater than the existing setup, potentially enabling Recoma to process up to 15,000 tons of waste annually, equivalent to 1.5 million square meters of building boards. Designed for flexibility, the new line aims to minimize waste during the production of customized boards and is expected to be operational by the first quarter of 2026.

To date, Recoma has supplied over 50,000 boards to hundreds of customers across the EU and is a supplier in nearly all of Sweden’s building material retailers. Life Cycle Assessment (LCA) calculations indicate that Recoma’s operations have already saved more than 5,000 tons of CO2 equivalents. This figure is expected to increase significantly with the new investment in expanded capacity.

With the support from Climate Step, Recoma is planning a series of enhancements to solidify its commitment to sustainability. The company aims to expand its production capacity to meet the growing demand for sustainable building materials. Additionally, it will invest in research and development to enhance and diversify its product offerings. These developments are expected to improve the efficiency of Recoma’s production processes, further reducing its carbon footprint and bolstering its role in the sustainable building sector.

The Climate Step initiative by the Swedish Environmental Protection Agency is designed to support local investments that reduce greenhouse gas emissions. By funding projects with significant potential to contribute to Sweden’s climate goals, Climate Step aims to accelerate the transition to a sustainable society.

The funding decision is conditional upon matching financing of 35% of the investment cost. Consequently, Recoma is planning a capital round this fall, aiming to raise between 30 and 40 million SEK through a stock issuance involving current owners and external investors.

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RECOMA’s process of turning packaging waste into low-carbon, fully circular construction boards is a pioneering solution in an industry heavily contributing to carbon emissions and waste. This move is particularly vital considering the construction sector’s significant environmental impact, especially in countries like Sweden. Kiilto’s backing will enable RECOMA to amplify its waste recycling capabilities, marking a substantial stride in the industry’s move towards more eco-friendly practices.

“We are proud to contribute to construction’s sustainability revolution and the transition towards zero waste and zero emission building materials, helping companies and contractors make needed changes today without new tools, extra knowledge or premium prices,”

says RECOMA CEO Max Rosenberg

RECOMA makes sustainability simple for construction

Notable early adopters, including Skanska and Tetra Pak, are leveraging RECOMA to meet corporate and customer environmental targets.

“We see a gap in construction technology and traditional materials, and with new embodied carbon targets that are proliferating around the Nordics, we believe RECOMA is in a great position to decarbonize our building stock,”

says Head of Kiilto Ventures Matti Rönkkö.

For more details, please refer to the full article on Kiilto’s website: Kiilto Ventures invests in RECOMA.

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