RECYCLING INDUSTRY MARKET AND PRODUCTIONINTELLIGENCELINE
a. Definition, segments within the industry and market share
e. Overview of challenges Key demographics
This first section provides an introduction and overview to the material handling industry and gives key background information, market intelligence and identifies the major players within the industry. It has been organised as follows:
h. Major machine builders
This document has been divided into three parts:
EPTDA continually strives to develop relevant tools for its members, helping them stay competitive in a constantly evolving marketplace and business environment.
2. Production Line Intelligence Page 10—23
g. Key producers in the recycling industry
EPTDA was founded as the European Power Transmission Distributors Association in 1998 on the initiative of a group of power transmission and motion control (PT/MC) industrialists who believed in bringing together PT/MC distributors and manufacturers on one unique platform. It has since become the largest organisation of PT/MC distributors and manufacturers in EMEA and is one of the most powerful and respected B2B executive platforms for the industry worldwide.
3. Use of this Document Page 24—25
The opportunities within the recycling sector, both for MRO and OEM distribution are significant – a minimum ‘scale of opportunity value’ (SOV) of €1bn has been estimated as available for distribution in the after-market, of which €240m is estimated for plastics recycling alone. The final section proposes how the document could be used and provides open-ended questions that can be asked to prospective customers in order to reinforce the knowledge gained in parts one and two and to maximise the available opportunities.
d. Current and future market trends
b. Market size and coverage
EPTDA’s mission is to strengthen its members in the industrial distribution channel to be successful, profitable and competitive in serving customers to the highest standards. The association takes great pride in its values which focus on being a premier community for qualified members through open dialogue and mutual respect; acting with integrity, honesty and fairness; and ensuring continuous growth and learning.
3
f.
Purpose of this document
As part of the development of tools and resources for members, this document is designed to add value to their commercial understanding of specific markets and production line processes. This document, on the Recycling industry, follows the success of the first report in 2016 on the Soft Drinks industry, on Confectionery in 2017, the Automotive industry in 2018, and most recently, Material Handling in 2019.
The purpose of this document is to provide distribution management and their sales forces with market and production line intelligence on the recycling industry, primarily in plastic waste. This document explores trends, identifies products used in recycling and the production line of recyclates and recycled materials, clarifies key challenges and considers the opportunities and how they can be capitalised.
This section illustrates several types of recycling processes with a fully detailed production line schematic on plastic recycling, so as to provide an understanding of what is involved and where the opportunities lie. Key customer challenges, major product groups, typical maintenance and improvement projects are identified throughout the line, as well as highlighting potential areas of commercial opportunity for the distributor.
c. European sales data and evolution
1. Industry Overview Page 4—9
Overview
• Bin liners and carrier bags
• Cosmetic containers
• Resistance to chemicals, grease and oil
Plastic resin types1
• Bin liners and carrier bags
• CD and video cases
The size of the recycling industry is shaped by the level of supply of materials set aside for recycling, with demand for recyclable materials heavily influenced by regulations on waste. According to EU legislation, by December 2025 at least 65% by weight of all packaging must be recycled, with the figures rising thereafter. 2 This directive applies to all recycling sectors, from industrial to commercial and domestic spheres.
• Some hair products
• Floats in water
• Low melting point
• Milk bottles
PART ONE
• Detergent bottles
• packagingMulti-material
• Textiles and clothing
• Packaging
• Squeeze bottles
• Solvent-resistant
• Normally sinks in water
PS (Polystyrene)
Plastic resin properties: Found typically in: Recycled material use:
• Egg and yoghurt cartons
Plastics are often considered in two categories – thermoplastics, or thermosets. Thermoplastics are recyclable plastics as their
PVC (Polyvinyl Chloride)
PP (Polypropylene)
Other types of plastic such as thermoset plastics e.g. (Polyurethane)PUR
• Currently not recycled
• Flexible and easy to process
Whilst there are many types of recyclable material including glass, metals, wood, paper, rubber and electrical waste, this report will primarily focus on plastics. Although plastics is the second largest sector in the recycling industry, after paper and cardboard, it has become the face of the recycling industry and come under heavy scrutiny for its environmental impact.
• Packing film
• Carpets
• Packaging and food protection
• Permeable to gas
Only certain materials are currently recyclable – principally due to recycling plant capabilities, rather than due to the material itself. These waste materials are collected or deposited before sorted, cleaned and reprocessed into new materials for manufacturing.
4
• Panelling and gutting
• Resistance to heat, chemicals, grease and oil
PET
• Rigid and strong
• Soft drinks
HDPE (High Polyethylene)Density
• Salad trays
• Food packaging and non-food containers
• Formed easily
• Pipes, window and door frames
• Transparent
Recycling is the process of converting waste materials into new or reused, composite materials and objects , thereby beginning the ‘life-cycle’ process of a material once again, also known as a ‘circular economy’. It is an alternative disposal solution that is considered more sustainable and environmentally friendly than options such as incineration and landfill. Recycling reduces material wastage and lowers energy and gas omissions, as well as water pollution.
EPS (Expanded Polystyrene) can be reprocessed for:
• Water bottles
• Non-food containers
• High melting point
• Food packaging and non-food containers
• Clear and versatile
• Clear and tough
• Moisture and chemicals resistant
• Carpet backing
• Food packaging
• Carpets
• High melting point
Recycling Industry Overview
• Sinks in water
• Floats in water
• Coat hangers
• Slate replacement for roof tiles
• Sinks in water
or Terephthalate)(PolyethylenePETE
Type of plastic resin:
• Floor tiles
• Bleach detergents
• Freezer bags
Definition, segments within the industry and market share
• Shipping envelopes
• Some vehicle upholstery
LDPE (Low Polyethylene)Density
• Flexible films
• Some vehicle upholstery
• Water cooler bottles
• Soft drinks
Denmark, Norway and Switzerland produce the most waste with an average of 745kg waste per person, compared to 310kg in Czechia, Poland and Romania.16 of global plastics production11
Distribution
In 2017, Europe generated 249 million tonnes of waste in 2017, 23% of which was plastic.15 Total generation of municipal waste in Europe per capita – waste collected by authorities – has fallen since 2008, which peaked at its highest between 2000 and 2008. However, over the last four years (since 2014) there has been a slight growth in the amount of waste generated per person.
European sales data and evolution
Plastics is a dominant recycling sector in Europe with a turnover of 360 billion euros in 2018.9 Less than a third of all plastic
Global plastic production reached 348 million tonnes in 2017 (a 13% increase from 2016), of which 64.4 million tonnes was produced in the EU28 + NO/CH). As part of this overall increase, preferences for certain types of packaging has changed. Over the last 10 years, generation of paper, cardboard and plastic packaging waste has steadily increased, whilst demand for glass and metal has fallen.7
Europe(China)Asia NAFTA (Rest)AsiaMiddleAfricaEast,LatinAmericaAsia(Japan) Commonwealth of Independent States 4%3% 4% 7% 17% 18% 18% 30% Generation of municipal waste in Europe, in thousand tonnes10 Year wastemunicipalofGeneration 262.5232.5255.0247.5240.0 261 245242243244 257 254 250248243 2008 201720162015201420132012201120102009 5
composition enables them to be melted when heated or hardened when cooled. In contrast, thermoset plastics are currently not recyclable as once they have been heated their composition cannot be reversed or modified. A common type of non-recyclable plastic is Polyurethane (PUR). 3
Broadly speaking, this growth in market value is mainly driven by EU landfill directives. These directives are strict: between 2005-2006, around €4.1 billion was spent to ‘support the closure or rehabilitation of unauthorized landfills, develop waste management infrastructure and support separate collection and recycling schemes.’6 The growth in the recycling industry’s market value is also due to increased environmental awareness, as both individuals and companies seek to limit the amount of waste they produce or turning to alternative recyclable materials.
The global recycling market reached $282.1 billion in 2018.4 Leading European countries in terms of recycling rates include Germany, Austria, Switzerland, Italy and France.5
Market size and coverage
Despite the concerns of lower quality, higher price and large amounts of plastic waste required to produce recycled plastics, when compared to non-recyclable plastics, demand for recycled materials has only increased. Polyethylene Terephthalate (PET) leads the recycled plastics market with almost 34% and a CAGR growth of 5.5%. This is mostly because it is widely available and cheaper than other recycled plastics.8
waste, however, is recycled.12 Globally, plastics recycling has increased exponentially over the last fifty years. In Europe, this is reflected in the 3 million tonnes of plastic packaging waste that Germany, as the continent’s leading recycler, processed in 2016 alone.13
In fact, in 2018, the recycling of plastics in Europe overtook landfill treatment of plastic waste for the first time, having increased by nearly 80% over the last ten years. Nevertheless, it is estimated that over 9 million tonnes of plastic waste are still being sent to landfill sites.14
Members of the European Parliament hope that such measures will not only improve product design for better recyclability, but also stimulate demand for recycled plastic materials itself. Since 2015, Europe has seen a ban on single-use plastic items, starting with light-weight plastic bags, cotton buds, cutlery, straws and drink stirrers, with a ban on micro-plastics expected in 2020.
Whilst plastic recycling has the most consumer awareness, steel, is in fact the most recycled material in the world. This is partly because, like glass, it is 100% recyclable, and also because it can be easily recovered in the sorting process of collected waste thanks to its magnetic properties. Furthermore, in comparison to plastics, steel can be recycled infinitely without affecting quality of the recycled end-product. 26
Across EU member states, only 30% of all plastic waste treatment is currently recycled; the rest being incinerated or landfilled.18 The overall rate of plastic recycling varies between countries, but data indicates that plastics recycling is a strong growth-area for Europe. This is because, currently, half of the plastic collected for recycling in this region is exported outside of the EU for treatment. ‘Reasons for this exportation include the lack of capacity, technology or financial resources to treat the waste locally.’ 19 This has a negative impact on Europe’s economy: it is estimated that 95% of the value of plastic packaging material is lost after a short first-use cycle. 20 There is also an environmental impact, due to the C02 emissions released during plastic production and incineration.
40% 20% 10% 6% 4% 3% 17% Packaging Agriculture Other ElectricalHousehold&Electronic Building & Construction Automotive Demand for recycled plastics in 2016, by industry21 Country rateRecycling 206070040503010 66.1 53.953.552.752.6 63.8 56.6 48.348.1 55.9 Germany SwedenLuxembourgItalySwitzerlandBelgiumSloveniaAustriaNetherlandsWales (UK) Recycling of the top European countries in 201717 6
Demand24for
plastic recycling facilities in Europe will increase with it estimated that sorting and recycling plants will be expected to be able to handle a 25% growth in capacity. Whilst Europe currently has almost 1,500 sorting and recycling plants solely dedicated to plastic, this is not enough to meet the 16.8 million tonnes of plastic packaging generated in 2017, let alone the expected growth in future years. 25
In addition, since the ban from China on importing foreign waste – known as the ‘National Sword’ policy – global exports from the top 21 exporting countries (most notably from the USA, Germany, UK and Japan) dropped significantly by almost 50% at the end of 2018 when compared to two years prior. 22 Whilst some countries have taken to redirecting exports to surrounding Asian countries, it has highlighted a significant opportunity and need to increase treatment and recycling facilities at a local level and reduce the need to export.
Plastic recycling is itself a complex process. Plastic recyclers require a large amount of recyclable plastic, in addition to the composites being difficult to breakdown. This accounts for the lower than expected percentage of recycling as a method of plastic disposal. The EU has a strategy in place to improve this though by 2030 through a call for all plastic packaging to be recyclable. 23
In addition, High Density Polyethylene (HDPE) plastics production is heavily influenced by the population curve as an increase in child population results in increased milk bottle production, and in turn HDPE plastics for the manufacturing of these products.
Recycled plastics in the automotive industry
Waste and energy management companies Veolia and PV Cycle were the first in 2018 to open a European plant specifically for recycling waste solar panels. Here, the scrap glass will be recycled into the glass industry, waste silicon used in precious metal channels, whilst the cables and connectors will be crushed and then sold as copper shot. 34
Another material in the metals industry that has high recycling rates is Aluminium, of which over 75% in the industry is still in use having been recycled many times. It is also very energy efficient, saving 95% of the energy required for initial production. Europe is the number one region in recycling aluminium.30
One very key recent trend is the negative public view of single-use plastics. As the move away from them is enforced by the EU, the negative view of these plastics is unlikely to change. This trend offers a significant opportunity for recyclers as the amount of waste to process, and also material to produce, increases.
An example of this can be seen in the solar energy market. As the market for solar energy booms – demonstrated in France with 190,000 metric tonnes of solar panels sold in 2017 – so will the recycling of these materials. It is expected that by 2020, solar panels will contribute 35,000 tonnes of waste each year as the annual number reaching the end of their product life doubles.
Virgin materials and chemical recycling
Rather than recycling plastics into more plastic products, new technologies have been developed for what is known as
Paper 7
Many companies are responding by increasingly looking at ways to provide options to recycle and create their own circular economies.
One innovative use of recycled plastics includes the adoption of technical plastics in the automotive sector, which has doubled over the last 25 years. This has been seen with the material making up nearly half of the components found in cars. The light weight of plastics is a strong reason for this growing trend, which in turn contributes to improving the fuel economy of cars. It is estimated that demand for plastics in the European automotive sector is about 5 million tonnes per annum. 32
The steel industry has also already met and exceeded its industry objective of an average European recycling rate for steel packaging – 80% by 2020. 28 This is in stark contrast to the recycling of plastic whereby according to the EU Waste Framework Directive, 50% of plastic must undergo material recovery by 2020. Yet, very few EU member states have been able to or are near to meeting this target. 29
Older generations are more likely to see recycling as a matter of personal responsibility – something to be taken care of by individuals. Younger age groups, such as Millennials, and Generation Z, tend to take a different view – they see recycling as an issue that businesses and product manufacturers should be responsible for.
Virgin materials or resources that haven’t previously been used or consumed, are often less costly for manufacturing to purchase, than their recycled counterpart. Whilst a challenge for recyclers to consider when looking to sell recycled materials, the depletion of these virgin materials acts as a benefit and driver for recyclers.
Current and future market trends
As virgin materials become more and more scarce, the demand for recyclates will naturally increase. In addition, the energy required to produce virgin materials is almost 70% more than recycled plastics, adding another strong benefit to choosing recycled materials over primary production. 35
Recycling in WEEE industry
Number of sorting and recycling plants in Europe, by capability of recycling type27 Recycling capability plantsrecyclingandsortingofNumber 2,0006,00004,0005,0003,0001,000 980 2,834 2,921 5,513
Key demographics
As Millennials and Generation Z are consuming less alcohol than older generations, the demand for aluminium cans has seen some decline in sales. More and more consumers are purchasing fresh fruit and vegetables rather than food products in tinned cans. 31
Although still small, WEEE is seen as one of the fastest growing sectors in Europe with reports of 3-5% annual growth. 33 The recycling of WEEE is important due to the severe health concerns associated with poor or inadequate treatment of electrical devices, but it also provides a significant opportunity as a secondary raw material.
Plastic GlassMetal
China’s National Sword policy is not only a ban on imported foreign waste, but is also a policy to improve the quality of recyclates produced with exceptionally low contamination levels and high purity rates. This is in turn used to make a variety of products from office furniture to cable coating from within its own economy and is then exported to other countries or regions. In contrast under 12% of materials used in Europe to produce and manufacture products have come from recycled products. 37
Recycling technology
Some organisations see the ban as an opportunity – where previously recyclers were having to compete with China on price for recovered materials. For the plastics sector, one EU directive aims to tap into this opportunity, by seeing 10 million tonnes of recycling plastics to be used in new products sold in Europe by 2025.
Producers and manufacturers have expressed concerns of lower quality materials and increased costs, particularly associated with plastic recycling compared to using materials that haven’t previously been recycled. This is predominantly due to limited technology, financial resources and a shortage of recycling plants to treat the amount of recycling waste produced within Europe.
One major challenge with recycling is that the process behind recycling different products that may have the same resin code, could be as unique and individual as the product itself.
Whilst European recyclers prepare to increase capacity, they are reliant on an increase in European demand for such recyclates. A few manufacturers spear-heading this include car manufacturer, Volvo and food company, Danone. Volvo has announced plans for materials used to manufacture it’s cars are to be made with at least 25% of recycled plastics by 2025, and Danone has pledged to make its Evian plastic bottles with 100% recycled plastic. 39
chemical or feedstock recycling. This is the process of converting post-consumer plastics into chemicals that can then be used in the chemical industry ‘to produce virgin-like polymers to create new plastic articles’.
recyclates demanded by producers and manufacturers will also be unique, as plastics are typically customised to the manufacturer.
8
To add further complication, coloured soft drinks bottles must not be mixed with clear soft drinks bottles.40 This all highlights the limitations and challenges within the recycling process itself from sorting, through to cleaning and producing high quality
Furthermore,recyclates.the
China's National Sword policy
Plastic resin codes
The rising trend for recyclable materials across sectors –including automotive and construction – is fuelling the global recycling equipment and machine industry. Efficient recycling technology is paramount to sustainable waste-management development, and it is expected that the global recycling equipment and machinery market will surpass 1.5 billion euros by 2025, with specific growth anticipated in baler presses and plastic recycling machinery. 36
One area of the recycling industry that has really seen the effect of China’s import ban is the European paper recycling sector. Excess demand of recovered paper was previously sent to China, but due to the now rigorously enforced purity level and quality regulations, has led to oversupply within the market. This led to seeing the price of recovered paper plummet by over 300% between 2017-2019. 38
Overview of challenges
For example, a plastic soft drinks bottle will melt at a different temperature to a plastic salad bowl, even if they both have the same plastics resin code number 1. If recycled together one could become a contaminant for the other.
Prior to China’s ban on the import of 24 types of waste material and tougher standards on others, China faced an annual 67 million tonnes of waste to treat. With this ban in place and much more rigorous standards of imported products, this has created a large problem for other countries and regions, including Europe, of what to do with the waste previously exported to China.
Banzo
9 Cespa Spain
Primary GeographyBusiness Bakker Magnetics BV The Netherlands Bollegraaf GmbH Germany Gantry France Vecoplan AG Germany
Shredding Machinery
European leaders in recycling41
Primary GeographyBusiness
Tomra Sorting (part of the Tomra Group) United Kingdom Tomra Group Norway
• Sikoplast | Germany | Full range of complete system suppliers
Conveyor Systems
Other players in the industry
STEINERT UniSort GmbH (part of the STEINERT Group) United Kingdom Vecoplan AG Germany
The Netherlands
• Binder+Co | Austria | Glass and paper screening
• Tecnofer Ecoimpianti Srl | Italy | Full range of complete system suppliers for plastic recycling
10 Shanks Group (Renewi) UK
Bollegraaf Recycling Solutions The Netherlands OPTIMUM Sorting Belgium Rentec NV Belgium
3 Remondis Germany
Primary GeographyBusiness
5 FCC Spain
The below are significant machine builders for the recycling industry across some of the key machines used in the recycling process:
Primary GeographyBusiness
9
7 Urbaser Spain
Sutco RecyclingTechnik GmbH Germany
Recyclers will often source machinery from a variety of builders. This is because no company produces the entire system. Furthermore, each plant will have different requirements and so in turn will need to custom build or modify their system line.
Magnetic + Optical Sensors
• Domenech Machinery & Systems | Spain | Full range of complete system suppliers HAAS Recycling-Systems | Germany | Full range of complete system suppliers
4 Alba Germany
2 Suez Environment (Sita) France
Sutco RecyclingTechnik GmbH Germany
Stadler® Anlagenbau GmbH Germany
Primary GeographyBusiness
Bezner (part of the Heilig Group) The Netherlands N.M. Heilig B.V. (part of the Heilig Group) The Netherlands Vecoplan AG Germany
Value Rank (as of 2019) Company
1 Veolia France
8 Van Gansewinkel (Renewi) US / UK
Significant machine builders
6 Indaver Netherlands
Sorting Machinery
Recycling process - Market Intelligence
• Plant facilities are harsh environments which are dirty and dusty creating a high wear rate for machinery
• Bespoke design - this requires machines to be adapted to meet the local condition (no two plants are exactly the same)
The following are key challenges that are often found within recycling plastics. Supporting the schematic, additional key challenges relative to specific stages of the production process are identified.
• The next best waste material colour is white. Whilst it cannot become clear, it can be remade into any colour
Introduction
• Coloured or opaque plastics are limited to becoming darker shades of the original colour and are often considered contaminants instead
Some recyclable materials can only be recycled once
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Recycling uses energy and creates pollution
Environment and maintenance
• The local weather extremes (wet, hot and cold) can also influence plant maintenance, e.g. seals and lubrication
Coloured plastics
• There is a preference for plastic materials that are transparent as these can be dyed and have greater flexibility in what the recycled plastic can be used for
• Certain types of plastic resins, such as PET plastics, can only be recycled once and after which become general waste
This process, whilst being representative of the stages typically undergone for different recyclable materials, may differ slightly depending on plant, even if they are recycling the same materials. For example, the process to create PET flakes will vary from plants recycling plastics for HDPE, PP or PVC. Nonetheless, the key stages described here will be common to most types of facilities and there will be similarities that can be seen across all segments of the recycling industry.
This schematic describes the typical process used for recycling plastics, detailing the six key stages: collection, sorting at the Materials Recovery Facility (MRF), final sorting and hot wash, shredding, cleaning, and bagging.
• There is a trade-off between the energy and cost required to produce new products and some forms of recycled plastic are not considered worthwhile in time, energy and resources required to produce it and the end product
This section also highlights the key customer challenges specific to recycling. It describes the key product categories used in the process and typical projects in maintenance, repair and overhaul that are often undertaken in such a plant. Key sales opportunities are identified in relation to products and maintenance projects that are supported by distributors with real technical expertise.
PART TWO
• How are these then disposed of?
• Due to the dirty environment the plant is cleaned on a daily basis, but for maintenance requires a complete shut-down so that maintenance engineers can come on-site. This usually requires a half-day shut-down, once a week
Key challenges and themes
11
Smart recycling
Reducing water usage as part of the recycling process
In addition, consumers can also access information on their smart-phones by ‘reading’ the watermarks for recycling information.46
E.g. smart apps and monitoring devices, whereby wireless devices communicate with each other to save human efforts and increase efficiency in the waste management process.42 For example, bins can be monitored digitally in order to check whether emptying is necessary, or drones on landfills and robots dismantling or storing through waste.
4. Only then and where necessary, upon complete failure or presenting a risk of danger, can the product then be disposed of as waste
Water is often used to clean and cool plastic. Some recyclers have been able to reduce water usage and create recycled plastic materials without the use of water.44
Another way to improve quality of recyclates and speed up the sorting process, is by using UV light to identify fluorescent pigments or digital watermarks imprinted in the plastics.
Recycling and new technologies
Industrial Internet of Things (IIOT)
With high error rates and costs, IR laser and beams have increasingly been used to identify the various types of waste plastics. Air is then used to sort the plastics for separate recycling.45
E.g. the ability, through installed technology at collection points, to automatically sort waste into categories. This facilitating process enables simpler recycling for a more sustainable process, to boost companies’ eco-friendly image and influence customer behaviour.43
Use of Infrared (IR) laser and beams
Use of fluorescent pigments and watermarks
Circular economy of a product's life journey
2. Maintenance, repair or upgrade of a product upon failure or it breaking to further extend lifetime
3. Dismantling of product for parts which can be reused or re-manufactured for newer models
1. Extend product longevity with better initial design and production
Sorti Dryingandbagging
Collection
Mechanical dryer
Collection, delivery and bag opening at the Materials Recovery Facility (MRF)
2. Delivery to MRF Recyclable materials delivered will typically be mixed and collected in the 'tripping floor' where trucks or lorries will leave mixed recyclables piled on the floor.
1. Collection Various types of plastic are collected as part of local council recycling schemes. It is either pre-sorted by the public (into categories of paper, plastic, metal, glass etc.) or collected as part of mixed recycling. The recyclable material is taken to a Materials Recovery Facility (MRF).
15. Cleaning The plastic (PET) flakes are conveyed to sink float tanks where they are then washed with detergents to remove any remaining contaminants. The flakes are also separated further according to plastic resin types by whether they float or sink.
Cleaning in oat-sink tank
Bagging
Cleaning Shredding
ThermalBaggingdryer
14. Shredding The plastic is ground into tiny pieces known as 'flakes' by a heavyduty grinder.
16. Drying The plastic flakes can be dried either thermally or mechanically. In a thermal drying system the flakes are mixed with hot air in spiral tubing to dehydrate the flakes below 1% moisture. In mechanical drying systems centrifugal force spins away excess water, before tilted paddles are used to propel the slurry of flakes against a mesh screen which filters the flakes from the water.
Floating materials are pushed along the surface of the tank by paddle rollers, whilst heavier materials will sink for extraction.
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3. Bag opening Any plastic bags found in the delivered recyclables are torn open by a machine to free, without damage, the contents that may have been placed in plastic bags by consumers.
17. Bagging The dry flakes are poured into bags before they are transported to storage or to another facility where the plastic will be melted into plastic pellets or nurdles for the production of plastic products.
4. Placed onto the sorting line A mechanical claw grabs a handful of recyclables and moves it from the tipping floor into a spinning drum or hopper, which evenly distributes the recyclables onto a conveyor belt.
Explaining the Plastic Recycling Process Process
Placed onto sorting line Initial Shreddermanual
8. Placed onto the sorting line Above the conveyor a large magnet is used to remove anything magnetic still present before passing through another magnetic field to separate non-ferrous metals, such as aluminium. As non-ferrous metals pass over the Eddy current magnetic roller, they become magnetized and are ejected, leaving only plastic materials to continue along the conveyor.
11. Final sorting The plastic is conveyed into a large rotating tunnel known as a ‘trommel’ machine. Small contaminants fall through the holes on the trommel as the plastic materials is moved onto label separation and hot washing.
12. Label separation Friction is created inside a label separator machine to ensure labels are removed from plastic passing through before removed labels are separated from the plastic material by pneumatic power.
13. Hot wash The plastics are hot washed using boiling water to sterilize and remove any remaining glue from the labels.
6. Large star screens The recyclables continue along the conveyor belt into a large star screening machine where larger items are removed, whilst smaller items fall through the screens and continue along the conveyor.
Secondary manual sorting and star screening process
13
Label separator
Baler
MaterialsRecoveryFacility(MRF) sortingandhotwash
Magnetic metal sorter and Eddy current separator
Process ing at the
Infrared lasers
sorting and large star screening process
Trommel sorting machine
7. Secondary sorting and star screens The reduced material undergoes a second round of manual sorting. Three smaller screens filter remaining mixed recyclables.
5. Initial sorters Workers along the conveyor belt will manually sort through the materials, removing any items that may cause blockages along the line or that are not able to be recycled.
g Final
Hot wash
10. Baler The remaining plastic materials are passed along the conveyor and pressed into bales for transportation to PET flake recycling facilities.
9. Infrared lasers At this point, only plastic remains. Infrared laser beams shine on the plastics whilst a sensor detects the different polymer resin-types. Strategic puffs of air separate the recyclable and non-recyclable types of plastic into different bins.
• Spinning drum may require either synchronous or V belts.
• Pumps
• Cartridge valves
• Sprockets
• Maintenance of bearings due to destructive environment and wear on product. SOV: 5k€ per line, excluding all other 'add ons' to bearing sales such as mounting equipment.
• Gearboxes
• Conveyor belting
• Refurbishment of visual & optical sensors.
• Cylinders
• Control software
• Hose assemblies, adaptors and belts
• Pneumatics - actuators, FRLs, valves
Plastic Recycling Process
• Gearboxes
14
• Replacement cost of approximately 10 hose assemblies. SOV: 8k€.
• Control software
• Some collection vehicles use compressors, pumps or alternators to drive the ancillary equipment, incorporating micro V belts and drive components such as tensioners and idlers.
• Electric drive
• Replacement of 80 pneumatic valves per machine. SOV: 28k € for 10 machines.
• Pumps
• Cylinders
MRF Sorting – Key product groups MRF Sorting Critical projects
Collection – Key product groups
• Chain
• Link belting instead of rubber V belts. SOV: 50% reduction of vibrations, faster installation and bespoke length.
• If the vehicles used to recover the waste materials are owned by the recycling plant or Materials Recovery Facility, there may be an opportunity to supply maintenance spares or replacement parts.
• SOV: 2km of belting per plant.
Collection, delivery and bag opening at the Materials Recovery Facility (MRF)
• Cartridge valves
• Hose assemblies, adaptors and belts
• Motors
• Bearings - spherical plain bearings
• Rod ends
• Belt - synchronous or V belt
• Guide wheels and castors
• Belt - micro V belt drive components
Key critical projects within the collection and sorting at the Materials Recovery Facility (MRF) stages have been highlighted along the schematic to make it easy to identify which areas of the process have most opportunity.
• Linear belts may be used to traverse the mechanical claw.
• Replacement of sensors for air blowers. SOV: 350 1.4k€ per machine.
• Bearings - housed bearings (plummer block), self-lubricating bearings, spherical plain bearings
ThermalBaggingdryer
• Lubrication
• Pulleys - heavy duty or synchronous (used on star screens)
• Chain
Explaining the opportunities and projects
• Pneumatics
• Couplings - flexible, fluid
• Rod ends
• Maintenance and availability of parts for locking devices as they wear. SOV: 3 - 6k per machine.
• Linear - rails, carriages, splines, actuators
• Improved sealing on housed bearings to extend bearing life and reduce downtime. SOV: 5k€
Collection and Sorting at the Materials Recovery Facility
• Motors
• Guide wheels and castors
Mechanical dryer
Collection Critical projects
Collection Sorting at the MaterialsRecoveryFacility(MRF) sortingandhotwash
Collection and Sorting at the Materials Recovery Facility
**Please note that all figures represent the Scale of Opportunity value (SOV).
Dryingandbagging Cleaning Shredding Final
Magnetic metal sorter and Eddy current separator Baler Infrared lasers Placed onto sorting line Initial manual sorting and large star screening process Trommel sorting machine Label separator Hot wash Shredder Cleaning in oat-sink tank Secondary manual sorting and star screening process opening(MRF)Baggingdryer Bagging 15
Collection
Shredding
Hot wash
Plastic Recycling Process
Shredder
16
• Motors - gear motors
• Conveyor systems
Collection, delivery and bag opening at the Materials Recovery Facility (MRF)
ThermalBaggingdryer
Placed onto sorting line
Cleaning
• Lubrication
Secondary manual sorting and star
Sorting at the MaterialsRecoveryFacility(MRF)
MagneticBaler
Initial manual sorting and large star screening processLabel
• Chain drives
Dryingandbagging
Mechanical dryer
Cleaning in oat-sink tank
• Belt drives
• Pumps
Bagging
• Bearings - housed bearings, angular contact bearings
separator
Explaining the opportunities and projects
Final sortingandhotwash
Drying and bagging – Key product groups
Key critical projects within the final sorting and hot wash, shredding, cleaning and drying and bagging stages have been highlighted along the schematic to make it easy to identify which areas of the process have most opportunity.
• Rollers
Final sorting, hot wash, shredding, cleaning, drying and bagging
• Belt - heavy duty synchronous and V belts
• Bearings - housed bearings, spherical roller bearings
• Motor
• Cutting blades
• Pumps - hydraulic pumps and hoses
• Main motor bearings replacement requires 3 days' refurbishment. SOV: 700 € per bearing.
• Belt
• Torque Limiters
• Conveyor belting
• Pneumatics - FRL + tubing
• Pumps
• Refurbishment of machinery with highperformance belt. SOV: 800 € per piece, per machine
Infrared lasers
• Gearbox
• Overhaul of motors, replacing spherical roller bearings. SOV: 350 - 600 € per bearing, per motor.
• Drive chain
• Rollers
Cleaning – Key product groups
• Pulleys
• Gearbox
• Lubrication
Magnetic metal sorter and Eddy current separator
• Sprockets
• Availability of large size shrink discs. SOV: 1.5k € per machine.
Final sorting, hot wash, shredding, cleaning, drying and bagging
star screening process
Shredding – Key product groups Shredding Critical projects
• Electric drive
• Actuators
• Annual replacement of spherical roller bearings in shredding machines. SOV: 1k € per annum.
• Valves
• Sprockets
• Bearings - housed bearings
Trommel sorting machine
• Replacement of spherical roller bearings. SOV: 500€ per bearing, per electric motor.
Final sorting and hot wash – Key product groups Final sorting and hot wash Critical projects
• Replacement of gearbox. SOV: 1.5k 3k €.
• Chain - roller chain
• Grinders
• Seals - mechanical
• Shredders
• Bearings - self-lubricated bearings, housed bearings, solid / molded oil bearings
• Couplings - flexible
• Sprockets
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• Guide wheels
**Please note that all figures represent the Scale of Opportunity value (SOV).
• Motor
• Lubrication
• Large locking devices - shrink discs
• Cylinders
Baler
• Lubrication
Plastic Recycling process ‘Putting it all together’ Plastic Recycling Process 240m€ The approximate value of after-market sales in the plastic recycling industry The approximate value of after-market sales across all recycling industries Collection Sorting at the MaterialsRecoveryFacility(MRF) Dryingandbagging Cleaning Shredding Finalsortingandhotwash Magnetic metal sorter and Eddy current separator Baler Infrared lasers Placed onto sorting line Initial manual sorting and large star screening process Trommel sorting machine Label separator Hot wash Shredder Cleaning in oat-sink tank Secondary manual sorting and star screening process Collection, delivery and bag opening at the Materials Recovery Facility (MRF) Mechanical dryer ThermalBaggingdryer Bagging 1bn€ 20% 5% Chain (80% drive chain, 20% conveyor chain) 40% 15% 10% 10% RollersBeltsPneumaticsCouplings and motors Proportion of replacement products in the process line General Common types of bearings in a recycling plant • Ball bearings • Pillow blocks • Self-lubricated bearings • Spherical roller bearings (technical and special) • Simple bearings - wide range General Opportunities • Whilst motors have a 3 -5 year life-cycle, bearings are often replaced annually because of the environmental conditions • To replace a line of 20 - 30 rollers is a bi-annual cost of 3k€ of roller bearings • Case study example of the customer, distributor and original manufacturer working in partnership: A customer identified that 30m of elevator chain was continuously breaking and shared it with their local distributor. The distributor contacted the manufacturer sharing the technical problem. The manufacturer then designed new chain for the customer, saving them up to 60% of the customer's annual maintenance for that system 18
Whilst plastics recycling is a prominent trend within the recycling industry and heavy focus for many countries across Europe, other types of recycling, like aluminium and cardboard and paper are far more common and well-practiced across Europe. The following schematics showcase the
Aluminium Recycling
separationSorting Slurry
Drying
Moulding and dispatch Sorting at the Materials Recovery Facility (MRF) Shredding
processes for recycling metal products such as aluminium and also paper and cardboard, which contain similar elements from the plastics recycling schematic, but with a few differences to produce a recyclable material.
creationSheet
Other types of recycling
Cleaning and
Paper Recycling
Melting
formation 19
and rollingPacking, storing and dispatch
deliveryCollection,toMRF
(Materials Recovery Facility) and recycle plant
Collection
Independent company?
• What is your plan for follow ups to this meeting (further meeting/proposal/meeting with other people)?
• Do they have in-house maintenance engineers?
2. The meeting – questions to ask during the meeting to understand the needs, requirements and potential sales opportunities in the prospective customer
Do the machine builder suppliers provide aftermarket warranty service?
For many of these questions you may already know the answers. Others might be used on a regular basis when you visit customers and prospects in other industry sectors. It is meant as a resource to act as a prompt and reminder allowing your business to fully capitalise on this market intelligence and production information.
• What do you already know about:
• How old is the facility?
• Does this company have other facilities in your region/ territory?
• What is their role or speciality (facility manager/ maintenance manager/technical manager and do they cover maintenance, repair and purchasing)?
• What are the fall-back objectives if the primary objectives are unachievable?
• What is your proposed agenda?
3. The follow up – questions to ask or to reflect on, at the end of the meeting or afterwards
Preparing – before the visit
• What do you know about them already? (hint: search LinkedIn)
The following provides the reader of this document, either General Management or Sales Team, with some template questions to help generate revenue from this Production Line Intelligence overview and so develop business in the recycling industry.
BreadthPresentationExploratoryofservice
• What kind of questions will you ask (in relation specifically to who will be seen)?
The 'Recycler'
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• What are your primary objectives for the meeting – what do you want to achieve?
General
There are three parts that deal with:
• What is your initial summary as to the main challenges they face in relation to purchasing the types of products you can supply?
• How many people do they employ?
• Who decides on purchasing?
PART THREE
b. The people to be seen and which department
Is it a unitary site just dealing in one type of recycling, or does it have other facilities?
a. Detail of the company itself
The people to meet
1. Preparing (before any visit takes place) – this provides questions to think about and address before attending the company’s site. This further breaks down into two sections being:
• Who are you going to see?
The size and throughput?
• What kind of support material do you need to take with you?
A type of recycling plant - plastics, glass, metal, paper, wood, other?
Part of a major group?
• What are you visiting?
Using this document to develop business
• What parts do you particularly utilise most on an annual basis?What are the issues/challenges you have with getting those parts?
• How are the main machines maintained and repaired?
• What is your biggest current problem with your parts suppliers?Howdo you like your supplier partners to assist?
• What are the next steps?
The follow up
• How will you complete these?
• What are the problems in the process that affect continuity? What are your main issues in relation to maintenance?
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The most utilised products
Regular shut-down periods every 24 hours or once per week, or other?
• What are your main concerns in relation to type of production parts that you need to maintain and improve the line (e.g. bearings, mechanical power transmission, pneumatics, etc.)?
• How are you going to store this information?
• What are your main issues in relation to maintenance?
• How will you ensure that these follow ups are completed?
• Do you have existing projects carried out in relation to maintenance or energy management etc?
(If not already known, any of the preparation questions above can be asked during the meeting to establish site type, size, capacity, age, type, as noted).
Can we come back with a proposal to help you with some of this?
Separatorsdriven – magnetic or laser/optical Shredding or Grinding Washing and Drying
• What kind of support do you look for from your distributor in relation to on-going or emergency maintenance?
• What are the next steps you need to take and when?
Sorting machines and manual Material Transfer conveyor systems, belt or chain
Are you using partners – suppliers or distributors – to assist you in this process?
• What other types of follow up will you undertake and why?
Are there on-going projects to deal with this?
• What were the main points you learned from the visit?
• How are you going to use this information?
Suppliers
• How is regular maintenance managed?
• Who in your business do you need to share this information with?
Internal team, external team, machine builder contracts?
The actual meeting 'Materials Recovery Facility' or 'Plastics Recycler'
• What sort of plant or facility is this e.g. from raw plastic waste to plastic flakes for manufacturing, or other?
• How much of the whole process is reliant on manual input or automation?Doyouexpect this to change in the near future?
• What do you value most in relation to a supplier like us?
The facility
Are existing partners – suppliers or distributors –assisting?
What have been the success stories? How can these be replicated?
• What is the estimated annual spend on maintenance?
• What are the key maintenance/industrial supplies objectives for the facility?
• Where is the process most prone to failure or maintenance problems?
What are they caused by?
Maintenance, planning and issues
• What are the processes used from receipt to dispatch?
Also to a number of technical experts from distributor members of EPTDA operating in this sector, who have provided the concrete examples included in the text and without whose contribution the document would lack its operational and commercial relevance and power for distributors.
Sources: 1. 99p Recycling, 'Types of Plastic' 2. EUR-LEX, 'Packaging and Packaging Waste' 3. PlasticsEurope, 'Plastics – The Facts 2019' 4. PR Newswire, 'Global Waste Recycling Market Outlook Report 2017 – 2018:$37.6 Billion Opportunities in Plastic Recycling' 5. European Parliament, 'Plastic Waste and Recycling in the EU: Facts and Figures' 6. EUR-Lex, 'Document 52011DC0013' 7. Eurostat, 'Packaging Waste Statistics' 8. Globe Newswire, 'Recycled Plastics Market to Reach USD 66.74 Billion by 2026 | Reports and Data' 9. PlasticsEurope, 'Plastics – The Facts 2019' 10. Eurostat, 'Municipal Waste by Waste Management Operations' 11. European Parliament, 'Plastic Waste and Recycling in the EU: Facts and Figures' 12. Ibid. 13. PlasticsEurope, 'Plastics – The Facts 2018' 14. PlasticsEurope, 'European Plastic Waste: Recycling Overtakes Landfill for the First Time' 15. Eurostat, 'Municipal Waste By Waste Management Operations' 16. Eurostat, 'Generation of Municipal Waste Per Capita' 17. Eunomia, 'Recycling – Who Really Leads the World?' 18. PlasticsEurope, 'Plastics – The Facts 2018' 19. European Parliament, 'Plastic Waste and Recycling in the EU: Facts and Figures' 20. PlasticsEurope, 'Plastics – The Facts 2018' 21. Ibid. 22. Green Peace, 'Data from the Global Plastics Waste Trade 2016 – 2018 and the Offshore Impact of China's Foreign Waste Trade Ban' 23. PlasticsEurope, 'Plastics – The Facts 2018' 24. European Parliament, 'Plastic Waste and Recycling in the EU: Facts and Figures' 25. ecoprog GmbH, 'The European Market for Plastic Sorting and Recycling' 26. APEAL, 'Recycling' 27. ENF Recycling, 'World's Largest Directory of Recycling Companies' 28. Letsrecycle, 'Steel Recycling in Europe 'hits record high'' 29. ecoprog GmbH, 'The European Market for Plastic Sorting and Recycling' 30. European Aluminium, 'Recycling Aluminium: A Pathway to a Sustainable Economy' 31. Resource Recycling, '2018 Recycling Market Update' 32. PlasticsEurope, 'Technical Plastic Parts Strategy Paper' 33. Eurostat, 'Waste Electrical and Electronical Equipment (WEEE)' 34. Living Circular Powered by Veolia, 'The First Recycling Plant in Europe for Solar Panels' 35. OECD, 'Improving Plastics Management: Trends, Policy Responses, and the Role of International Cooperation and Trade' 36. Recycling International, 'Recycling Tech Market Worth 1.2 Billion by 2025' 37. Eurostat, 'Circular Material Use Rate' 38. EUROACTIV, 'EU Paper Recyclers 'in Crisis' as China Waste Import Ban Bites' 39. Reuters, 'EU Plea to Industry to Reuse More Plastic Lacks Bite' 40. National Geographic, 'China's Ban on Trash Imports Shifts Waste Crisis to Southeast Asia' 41. Public Services International Research Unit, 'Waste Management in Europe: Companies, Structure and Employment' 42. Frost & Sullivan, 'Digitalisation of the European Waste Recycling Market' 43. Cambridge Consultants, 'Cambridge Consultants Innovation Set to Solve Sustainability Challenges for Consumer Brands' 44. Industry Today, '2019 Plastic Recycling Trends' 45. Ibid. 46. Packaging Europe, 'Sorting the Plastic Recycling Problem'
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Acknowledgements and a sincere thank you to the following manufacturer members of EPTDA for the generosity of the technical and commercial information and advice that they have supplied and which has given real authority to the document.
The costed examples contained in this document are illustrations taken from real practice. They are, however, not predictions of future value achievable from various projects that can be undertaken in this sector. The authors, contributors and EPTDA do not accept any liability for any commercial decisions that may be taken as a result of these examples.
Authored by:
Acknowledgements
Disclaimer:
Finally to the individual members of the EPTDA Know Your Market Committee and particularly to its Task Group, who have freely given their advice, guidance and inputs throughout the process of producing this document.
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