Surfing the bottle-to-bottle wave

In rough market conditions, Türkiye’s plastics recycling sector struggles to keep its head above water. For Kocaeli-based PET recycler Başatli, business is no different. Even so, managing director Murat Özdemir sees light at the end of the tunnel.

With low prices for recycled plastics continuing to cause headaches across the global plastics scene, don’t expect a rosy business story from Murat Özdemir. ‘These are really uncertain and challenging times for our industry, it is very difficult,’ says the md of PET recycling firm Başatli.

‘You never know what the next day will bring,’ Özdemir laments while pointing to hundreds of large bags filling a huge storage hall next to the facility. ‘This is more than one thousand tonnes of rPET flakes – worth EUR 1.2 million – waiting for shipment to end users.’

‘PLEASE DON’T!’

PET recycling is far from a profitable business these days, according to Özdemir. ‘Honestly, if someone asked me: ‘Should I invest in plastics recycling, my answer would be: No, don’t! Put your money into something else.’

‘We’ve been talking to end users and big bands like Coca-Cola, Nestle and Alpla. As long as virgin is cheaper, they will keep using virgin plastics rather than rPET. At the same time, for a recycler, it’s unacceptable and very frustrating to see parts of our production standing still.’

BIGGER IN METALS

Recycling is a relatively new activity and business division for Başatli. Founded in 1953 in Kayseri in central Anatolia, it has grown significantly as a producer of steel pipes and profiles. When the company saw exports grow, it moved to the Marmara region with direct access to two major sea ports.

In 2019, Başatli launched an rPET division and invested EUR 50 million in a huge facility. The plant has a flakes output of 3 000 tonnes per month, based on 4 000 tonnes of used PET input. Materials are mainly sourced domestically while recycled flakes find their way to bottle-to-bottle producers both inside Türkiye and beyond.

‘Some 10% stays in here, 90% is shipped to end users in the EU – as well as less common destinations including Azerbaijan.’

BETTER TIMES AHEAD

Despite tough market conditions, Özdemir believes times will change for the better. ‘We’re seeing more regulation being implemented. Türkiye’s government is really promoting recycling and supporting our industry. We’re kind of following the EU route which means there will be more recycling rather than less.

What’s more, OEMs and big brands like Coca Cola have committed to use 50% rPET in their packaging by 2030 which can only further boost our business and volumes.’

NO LONGER A NICHE

Türkiye is a growing market for recycling solutions providers. ‘For us, Türkiye has always been a major hub connecting Europe with the Middle East and the Gulf region,’ observes Serkan Orhan, regional sales manager for sorting tech supplier Tomra.

‘Fifteen years ago recycling was a niche business here but that has changed completely. Recycling is a big topic now and we’re seeing huge investments.’

To date, Tomra has installed 250 machines and lines at customers’ facilities across Türkiye, mainly in the industrialised west around Istanbul, of which 90% sort plastics and municipal waste. Başatli is among Tomra’s customers.

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