Ongoing political and economic challenges have pushed “many recycling companies” across Europe to the brink of collapse, a key figure has warned.
Henk Alssema, president of the Bureau of International Recycling’s plastics division, issued the stark warning in a grim report.
“The manufacturing industry in Europe is struggling, which in turn affects our recycling industry,” he said, citing high energy prices, the cost of green transition, high interest rates, labour shortages and global conflict among other factors.
“Demand for recycled materials remains under pressure and those who hoped for a recovery after the summer break have been disappointed. Even worse, it seems the market may deteriorate further as we head towards the end of the year.”
With low margins and sales volumes, recyclers were under pressure, Alssema added.
“Inventories are rising and profits are almost non-existent, leading companies into liquidity issues. Additionally, prices of new materials remain low, further pressurising the prices of recycled material.
“If sentiment does not change soon, this could put an end to the operations of many recycling companies within Europe, resulting in the failure to meet sustainability goals.”
He added that “more and more” chemical recycling firms were “reassessing their ambitions” amid regulatory and cost uncertainty.
