The Global Boom in PET Recycling - How Long Can it Last? · • APET Sheet Market in Europe ... The Global Boom in PET Recycling – How Long Can It Last? USA: ... The Global Boom

The Global Boom in PET Recycling - How Long Can it Last?

Andrew Noone

Managing Director

PCI PET Packaging, Resin & Recycling Ltd

171

6th China International Recycled Polyester Forum

The Global Boom in PET Recycling –How Long Can It Last?

Andrew Noone, Managing Director

PCI PET Packaging, Resin & Recycling Ltd

6th China International Recycled Polyester Conference


Contents

Global trends in bottle collection and reuseRegional status and issues:

EuropeChinaNorth America

Conclusions

172


The Global Boom in PET Recycling –

How Long Can It Last?

• Member of PCI Consulting Group• Primary focus on Polyester Chain

– PET Packaging Resin– Polyester / PET Recycling– Fibres– Film– Raw Materials (Px, PTA, MEG, DMT)

• The leading global consulting group in its field• Clients include all major players throughout the

chain• Global Locations• Consultants with hands-on experience of the PET

industry


Consulting ServicesRegular Market/ Business Reports• Single client research

– Market/commercial assessments• Segments• Regions

– Benchmarking of costs/quality– Marketing plans/entry strategies– PET and PET conversion– Technology studies/assessments– Business acquisition/sale– Competitor profiling

• Multi client studies:– Regional Supply/Demand Reports

• Europe/Asia/Americas/Middle East– Occasional studies:

• APET Sheet Market in Europe• Chinese Reclamation Industry

173




Global Bottle Collection 2009


Global Bottle Collection Rates 2009

174




Post Consumer PET Collection

2009: 5.8mn tons / 44% recovery


Longer Term Collection Trends

China

Global Collection close to 11mn tonnes 2019

0

2,000

4,000

6,000

8,000

10,000

12,000

00

0 M

etr

ic T

on

s

West Europe East Europe North America South AmericaChina Rest of Asia Africa Middle East

175




Collection Sort5.8mn

Metric Tons

Waste

Process Loss 1.1mn

Metric Tons

Flake available

4.7mnMetric Tons

Fibres – 3.4mn Metric Tons

Strapping – 0.2mnMetric Tons

Sheet – 0.5mn Metric Tons

Blowmoulding –0.5mn

Metric Tons

Other – 0.1mn Metric Tons

Global RPET Balance 2009


Growth in Bottle-to-Bottle• Regulations permit RPET use

– Europe• EFSA to conduct a safety assessment of and approve any recycling

process used in the region– Examine the risk of migration of chemicals form contaminants

of input material, chemicals used in recycling process and degradation products of the polymer or additives from the recycling process

– USA• FDA standard assess the source of the recycled material,

effectiveness of processes to remove any possible contamination,conditions of use of the recycled plastics

– Mercosul region• Mercosul Resolution authorising the use of RPET in food packaging

is expected within the next few months

176




• Coca ColaTarget is to recover directly 50% of the equivalent bottles and cans sold worldwideCompany to source 25% of its PET from recycled material by 2015US target to use 10% recycled contentCCE (Coke bottler US, Great Britain, France & Benelux) target is an average of 25% recycled content across its products by 2010

• PepsiCommitted to 10% recycled content target in US

Nestle USA25% RPET content by 2013

• Wal-MartGlobal target to reduce packaging by 5% by 2013 and introduced scorecard system for suppliers

• Many smaller bottlers using in Europe• Major expansions in Mexico

End User Strategies


Contents

Global trends in bottle collection and reuse

Regional status and issues:

Europe

China

North America

Conclusions

177




• EU regulatory framework broadly stable in many countries

• Some proposals for higher recovery rates

• Collection volumes growing, but at slower rate than in the

past – at 8% in 2009

• Most countries now have established infrastructure

• Collection trending to lower rates

Regional Status: Europe


West Europe Collection Volumes

0%

5%

10%

15%

20%

25%

30%

0

500

1,000

1,500

2,000

2,500

% C

hang

e 5 Ye

ar A

vera

ge

000 M

etric

Tons

West Europe 5 Year average

178




End Use Applications in West Europe 2009


Contents



Europe

China

North America

Conclusions

179




Sources of RPET for China - Domestic use of PET


Sources of RPET for China – Domestic Bottles Collection

180




Regions/Countries PET Consumption (000 MT)

PET Waste Imports into China *

(000 MT)North America 3,260 311South America 1,108 61Africa Middle East 1,319 95West Europe 2,855 299East Europe 780 7Asia:

Indonesia 109 42Japan 613 335Korea 180 51Malaysia 64 37Taiwan 110 63Thailand 129 88Other 758 104

TOTAL 11,285 1,491

Sources of RPET for China – Imports (2009)

* Including Hong Kong net trade


• Preference to recycle bottles in local European markets

• Less local preference in US apart from California

• Chinese government concern at imports of waste materials– SEPA announced enforcement of import regulations for

waste at the end of 2007 – New regulations allow whole PET bottles…

• Global warming raises concerns about transporting bottles around the globe

Other factors influencing future of exports to China

181




China Supply Trending to 5.8mn Tons by 2019

How much more can fibres absorb ?


• Profile of the Chinese Reclamation Industry

• Examines:– Capacities– Throughput– Feedstock– Level of mechanisation

• The study is available now

Joint PCI-CCFEI Research Programme

182




Number of companies by input capacity volumes

0

10

20

30

40

50

60

70

80

up to 1,000MT

1,001-5,000MT

5,001-10,000MT

10,001-50,000 MT

50,001-100,000 MT

100,000+ MT


Reclamation input capacity by technology level

Low Technology8.5%

Medium Technology

36.8%

High Technology

54.8%

Definition of Technology

Low No machinery, small capacity

Medium Some machinery, 2k-20k MT capacity

High Several mechanised processes, 10k MT + capacity, quality standards

183




Contents



Europe

China

North America

Conclusions


USA: Recent growth in volumes but recovery low and a lot of the extra volume going to………..

184




USA Bale Prices


USA Supply Demand Situation in 2011Gap in Supply

Exports –constant share of collection

185




Growth in Bottle-to-Bottle Capacity• USA food grade capacity

to grow over 43,000 metric tons between 2009 and 2010 : more projects in prospect


Where will the bottles come from ?

186




Contents

Global trends in bottle collection and reuseRegional status and issues:

EuropeChinaNorth America

Conclusions

Documents

The Global Boom in PET Recycling - How Long Can it Last? · • APET Sheet Market in Europe ... The Global Boom in PET Recycling – How Long Can It Last? USA: ... The Global Boom