PETrecycling CZ is non-commercial, independent, free & unsponsored Czech web portal for funs, communities, administrative, law-makers, politicians, PET plastic industry etc. in the Czech Republic.

My closing statement read: "There is only one real effective and incentive method to encourage environmentally sound collecting of beverage one-way containers and it is deposit in combination with High-Tech R&D resulted Reverse Vending Machines!

PET Recycling – Keeping the Sustainable Value Chain up to Speed

Petcore’s Chairman of the Board, Roberto Bertaggia, the Europe, Middle East and Africa Sales Manager for the PET Resin Division of M&G Polimeri Italia, delivered a paper  today at the Identiplast 2009 Conference in Brussels.

Under the title “PET Recycling – Keeping the Sustainable Value Chain up to Speed”, Mr Bertaggia defined sustainability in relation to the whole recycling value chain and all stakeholders as well as the environment.

“Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs. ^1/

European PET recycle has increased by an average of 20% per year since Petcore began collecting data in 1993.

In 2007 1.13 million tonnes were collected but growth is likely to slow down in future, perhaps in line with an experience curve.

European PET recyclers saw their margins decrease by more than 30% in 2008 due to low recyclate prices (related to virgin PET prices) coupled with higher cash costs of manufacturing RPET.

Security of supply of baled bottles has also been a problem for recyclers. Exports of 176 ktons of PET bales from Europe (the majority of these to China) where made in 2007. The Chinese market dried up almost completely towards the end of 2008 although imports have now resumed at a slower rate. This uncertainty, coupled with low margins means that investment in new recycle capacity in Europe in the environment of variability in supply of baled bottles is not attractive.

It is vital that PET recycling continues to grow if the requirements of the Waste Framework Directive are to be met ^2/.

PET is the leading packaging polymer in helping EU countries to meet the Packaging & Packaging Waste Directive.

As a result of the publication of EU Regulation 282/2008 setting out the EU-wide conditions for recycled plastics to be used for packaging in contact with food, demand for food contact RPET is growing fast. Recyclers have to add extra cleaning stages to their processes to meet the high quality standards demanded for food contact. These cleaning stages are expensive and it is evident that food contact RPET could cost more to produce than virgin PET. In the current economic environment food contact RPET could have to be priced at a higher level than virgin PET thus, no matter how much stakeholders would like the price of recycle content resin to be below virgin, a new, sustainable business model has to be considered.

Current sustainable recycling chains are supported by a variety of economic instruments which differ from country to country. With PET resin prices currently at below cash cost, the only way that the recycle chain can grow or even be sustained is to consider Petcore’s following recommendations:-

• Increase income for collection and recycling;

• Study more effective recycling logistics (i.e. take out stages, transportation and costs) and business rationalisation;

• Lobby for legislation to harmonise collection schemes, first of all nationally and then on a European basis;

• Understand that the cost of being sustainable in the current environment means that recycle content resins could be at
  a higher price than virgin.

All stakeholders in the recycling value chain (including consumers and brand owners) have a responsibility to ensure that recycling remains profitable along the chain – even in downturns.

Another Petcore Board member, Mr Mark Kenrick, the PTA Business Director of Artenius's PET & PTA Division, supported
Mr Bertaggia with his presentation “Industry Views On Recycled Plastics To Food Recycle Regulations”. Mr Kenrick is the Chairman of the PlasticsEurope PET Committee.

__________________

^1/ Gro Harlem Brundtland, former Prime Minister of Norway

^2/ 50% of all household waste by weight should be collected for reuse and recovery by 2020