Horváth Fólia Kft. is a small business operating in Sopron, in northwest Hungary. The packaging materials and plastic bags it produces, made of biodegradable film, “disappear” in less than two months if properly composted. The development, supported by the National Research, Development and Innovation Fund, does a lot to change the generation of plastic bags used in commerce and to reduce environmental pollution caused by packaging materials.
Based on the traditions of a family business founded in 1988, Horváth Fólia has been producing plastic film products for several decades. With a wide range of products (pouches, bags, sacks, flat film, hoses, etc.), it meets 90% of the packaging needs of industrial users. The company produces for domestic and foreign markets, with around 20% of its revenue from exports.
However, in the spirit of environmental awareness and sustainability, both the European Union and the domestic legal environment are increasingly regulating the production of plastic products, and users increasingly prefer “green” packaging materials. The answer to these needs was expanding the company’s product range. The production of biodegradable, compostable plastics is currently the only realistic alternative to replace traditional single-use plastic packaging. Thanks to this, Horváth Fólia achieved a sales revenue of HUF 2.74 billion in 2022, 25% more than the previous year, while its profit after tax increased more than tenfold in one year, to HUF 253 million.
The production technology introduced for the biodegradable project produces plastic from polylactic acid (PLA) and corn starch, which breaks down into environmentally neutral components under specific conditions and turns into valuable biomass that can be returned to nature through composting. The alternative films produced by the company decompose well during industrial composting under optimal conditions and even during less professional, small-volume home composting, all of which are certified by the environmental product certification system of T†V Austria. The requirements for this are stringent since all the components used, such as the printing ink for labeling the bags, must also be compostable.
Since introducing the technology, the company has further developed the environmentally friendly plastics business. In 2023, with EU support and Ginop (Economic Development and Innovation Operational Program) Plus funding from the state, a new production hall was completed, where the production of biodegradable, compostable foil products will continue with an expanded machine park.
In addition, a solar panel system was installed, so part of the energy demand is already provided by renewable energy. The plastic bags, pouches, and other items belonging to the firm’s BIO product line are already used by many retailers. Among others, vegetables, fruit, and baked goods can be packed in them in Tesco stores. By choosing environmentally friendly packaging material and selectively collecting recyclable plastics, anyone can show that they care about the planet’s fate.
This article was first published in the Invented in Hungary 2024-2025 issue of October 18, 2024.
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