‘If one more thing goes wrong, it’s over for us’

‘Let me paint you a picture, a snapshot of a typical recycling company somewhere in Europe, not too big, not too small. The machines are running, but not at full capacity. It’s not the sound of growth. It’s the sound of survival,’ plastics recycling expert Henk Alssema told the latest BIR Convention, held in Valencia, Spain.

‘I spoke with the director. He looked at me and said, “Henk, we’re just about holding on but if one more thing goes wrong, it’s over for us”.’ 

Alssema shared the chilling example during the plastics division session in Valencia. He emphasised this was not a rare story but one typical of the recycling industry – with a few market exceptions. 

‘We see the same signals everywhere: pressure on margins, on stock levels, on liquidity, but also on people. Our sector is under structural pressure, not just due to market forces but a toxic mix of rising costs, shifting global trade patterns and a slow economy.’ 

It’s getting worse

Alssema reminded his audience of the previous convention in Singapore, when he reported that 5% of the Dutch recycling companies were in bankruptcy. Since then, he said, it had become much worse: according to an auction company that sells assets, there had been 20 bankruptcy options in the Dutch plastic processing industry over the past 12 months – up from just eight the year before.

‘Without measures like mandatory recycled content, stronger design for recycling policies, taxes and lower energy costs our market will continue to suffer. When we lose capacity, we lose more than just businesses. We also undermine our climate goals.’ 

Somehow, Alssema’s glass remains half-full. ‘I firmly believe there will be a turning point, one where our industry will prove to be the bedrock of the circular economy.’