Closing the loop on plastics with UK-based recycling infrastructure

Following recent revelations from a Greenpeace investigation on UK plastic exports, campaigners have urged the UK government to “take control” of the plastic problem. The investigation which took place across 10 sites in Southern Turkey has brought to life how UK plastic waste exports have been illegally dumped and burned rather than recycled.

Since China announced it would no longer be accepting imported plastic of less than 99.5% purity, the UK has turned to alternative countries to help manage waste since January 2018, including; Turkey, Malaysia, Poland, and Indonesia.

Last year alone, 210,000 tonnes of the UK’s plastic waste was exported to Turkey where reports state that the material was burnt and dumped in various locations such as roadsides, fields, and waterways.

A spokesperson for Greenpeace Turkey has reported that as many as 241 truckloads of plastic waste are imported from countries across Europe each day.

Alongside other countries across Europe, the UK’s plastic waste exports have been overwhelming Turkey’s recycling system, which does not have the capacity to cope with the high volume of materials.

“Governments need to take control of their own plastic problems”, says Manfred Santen, Chemist at Greenpeace Germany. “German trash has to be treated in Germany.”

With a similar sentiment, a spokesperson from the UK’s Department for Environment, Food and Rural Affairs has said “we are clear that the UK should handle more of its waste at home”.

Since the Coronavirus outbreak in 2019 and the resulting strain upon importing and exporting of goods, there has been an increased focus on products being ‘Made in the UK’. But many now fear there is a discrepancy between the amount of material that is used and recycled within the UK.

The latest UK Statistics on Waste report has estimated that the UK uses 5 million tonnes of plastic each year, of which around 45% is recycled (including exported materials). This goes to say that each year 2.75 million tonnes of plastic waste goes unrecycled by the UK every year; representing a huge loss of potential opportunity for plastic recyclers.

With fingers now pointing at the UK government to deal with the UK’s waste plastic, many have suggested introducing a ban on the exporting of these materials in favour of a UK-based recycling infrastructure.

As around two thirds of the UK’s plastic waste is currently being sent overseas this would be no easy-feat; however, the long term benefits could include a great deal of opportunity for UK-based recyclers. UK companies are also being urged to close the loop on their plastic production by taking responsibility for the way that their waste plastic is managed.

Whilst offering the opportunity for the UK to stay in control of its waste management, the solution would also help to reduce the emissions and costs involved with the transportation of waste.

The UK’s Department for Environment, Food and Rural Affairs has responded to campaigners, saying that “the UK is a global leader in tackling plastic pollution and our proposals for extended producer responsibility for packaging, a plastic packaging tax and mandatory electronic waste tracking will boost recycling rates, reduce waste and cut crime.”

UK-based recycling machinery manufacturer Rotajet Systems has experienced the effects of these regulations firsthand, with Company Director, Colin Steward, saying “we’ve experienced a significant rise in demand for our recycling plants to deal with the volume of industrial and household plastic waste being produced across the UK.

It’s great to see more and more UK companies putting these systems in place to deal with plastic waste in a way that is sustainable, environmentally-friendly, and even profitable.”

With the necessary infrastructure in place, this would suggest that the UK has the capacity to deal with more of its own plastic waste without the need for exporting materials elsewhere.

Whilst this would provide a financial solution to the environmental problem, this in-country way of dealing with plastic waste could also open up potential business and employment opportunities to UK citizens.

Has the ‘Bag For Life’ become a thing of the past?

Once-upon-a-time the ‘Bag for Life’ was brought in as a solution to the single-use plastic problem. But many now fear that the bag for life is getting the same treatment as its one-use predecessor, and with an even more negative impact.

As a result, some of the leading supermarket chains have been making big changes in order to make their carrier bag options more sustainable.

This also comes as the UK government has announced an update to the plastic carrier bag charge which will see their universal cost double from the original 5p to 10p.

Coming into effect from the 21st May, this new charge is to be rolled out across not only the currently participating retailers, but smaller stores as well, including corner shops.

One of the supermarkets leading the way with changes to their carrier bag options are UK-based food retailers, The Co-operative Group. The Co-op’s Chief Executive, Jo Whitfield, has explained that the one-use culture of the Bag for Life is “leading to a major hike in the amount of plastic being produced”.

And with more than 1.5 billions Bags for Life sold each year, this is now becoming a “massive issue” for plastic pollution caused by the retail industry. When the plastic bag levy was originally brought into effect back in 2015, it was predicted that the new 5 pence charge on single-use carrier bags would reduce usage by up to 80%. Since these predictions, the UK government has reported an overall 95% decrease in plastic bag usage since the charge was introduced. Statistics from the government have also suggested that the average annual bag use of 140 per person back in 2014 has since reduced to less than 4 in 2020.

Despite these seemingly positive figures, there are still questions as to whether the environmental impacts of the Bag for Life are in fact that much different to the previous one-use plastic carrier bag. With it being estimated that the average Bag for Life takes 3x as much plastic as the single-use carrier, it was in fact reported that supermarkets sold 41,579 tonnes more Bags for Life than the previous plastic carrier bag.

On top of this, it is estimated that the Bag for Life needs to be used 4 times in order to achieve the equivalent carbon footprint as the single-use carrier.

With this said, there are many concerns that the Bag for Life has actually become just another one-use alternative despite its much stronger and more durable design. As a result, their overall impact upon the environment and ecosystems has been estimated to be much more than the single-use carrier bag.

The Supermarket Solution

This has led supermarket chains life The Co-op and Morrison’s to turn to paper, string, woven, and compostable alternatives. Following a successful trial in 2020, Morrison’s became the first supermarket to do a plastic bags cleanse in their stores; instead offering customers a selection of completely plastic-free carrier bags. Carrier bag options at their stores now include; the 30p paper bag, and reusable string and jute totes ranging between 75p and £2.50.

The Co-op have made similar arrangements in their stores, with plans to cease plastic bag sales altogether once their current supply has been exhausted across their 2,600 stores. Customers will instead be offered woven and foldable bags costing between 50p and £1, as well as the option of a compostable bag for 10p that can then be used as a food-waste caddy liner.

A higher price for bags for life?

Many sources have suggested that the problem with the Bag for Life is that their low-cost is not enough to incentivise shoppers to reuse; suggesting that by increasing the price of the bag, rates of repurchase will decrease. It is yet to be seen whether the price increase of the standard carrier bag could have knock-on effects for the price of the Bag for Life in stores where they can still be purchased.

The overarching agreement among plastic campaigners is that the effects of plastic carrier bags are having seriously negative impacts upon the environment as a result of the resources taken to produce them initially, as well as their disposal in landfill and the oceans.

However, it is important to remember that as well as reuse, recycling is also a great way to cut down on the environmental impacts of the Bag for Life.

Is the Bag for Life recyclable? 

Typically made from Low-Density Polyethylene (LDPE), the Bag for Life is generally highly recyclable and is collected at many retail stores across the UK for recycling.

Whilst carrier bags are generally not collected by local authorities, many retailers offer recycling collection points in their participating stores, including brands like: Morrison’s, The Co-op, Tesco, Asda, Sainsbury’s, and Waitrose; with some even offering a refund for the cost of the bag on return.

With many positive steps being taken in the right direction, the impacts of the measures being taken by supermarket retailers and the UK government are to be eagerly awaited.

Rotajet Systems and AMIS Join Forces

Rotajet Systems and AMIS have decided to join forces in the latest big news for the plastic recycling industry, machine manufacturers and suppliers.

With their headquarters in Zuzenhausen, Germany, AMIS have built their reputation on their absolute dedication to customer satisfaction. Established in 1994 with just 6 employees their success led to a fast expansion which grew their workforce to 60 in just a few years.

Today, AMIS is one of the largest suppliers of size reduction technology in Europe and maintains a stock of more than 200 used machines, new Zerma machines and a large selection of spares.

As Rotajet Systems gears up as newly approved UK and Ireland agents for AMIS, the partners are excited for the new opportunities that this could lead to.

Equally, with AMIS as approved agents for Rotajet, the company expects to see new doors opening for business opportunities within the European Union.

Rotajet Systems are another key player in the plastic recycling industry; offering customers anywhere from plastic washing and drying machinery up to full plastic recycling plants.

Specialising in producing full recycling systems, Rotajet is a leading UK-based manufacturer with approved agents across the globe.

Bringing to the table 30 years of knowledge and experience, Rotajet has developed their range of plastic recycling equipment to suit the varying demands of the industry.

With this, Rotajet have built relationships with many other key players across the world to deliver leading solutions to the world’s plastic crisis.

Now with the forces of AMIS on side, Rotajet will be able to expand their offering to customers and position themselves as a market leader in the supply of recycling machinery.

As a part of this new partnership deal, Rotajet will be supplying and supporting the complete range of size reduction equipment offered by Amis including; new Zerma machinery, reconditioned machines, and a part exchange service for clients that want to upgrade existing shredders or granulators.

Colin Steward of Rotajet has said of the relationship: “we have been working with Amis for some time, and the introduction of AMIS machinery and services into our portfolio gives our clients a complete suite of plastic recycling machinery from one supplier.

It will also allow us to offer our customers the very best that size reduction machinery has to offer, with a full range of specialised, market-leading equipment”.

The new deal will also help AMIS in their mission to become a global leader in the supply of size-reduction equipment, adding to their ever-growing network across the world.

PVCR’s Capacity Increased By Two Thirds With Rotajet Partnership

The recycling of PVC window frames is a tough business, and the demands on equipment is severe. However, Rotajet has continually installed equipment to plan, on-time, and with the expert engineering knowledge and flexibility necessary for such undertakings. Post-installation, Rotajet has provided thorough and detailed recommendations to remediate issues and snags as well focus tenacity to resolve on-going issues

In recent months, Rotajet has been working alongside PVCR to upgrade their existing PVC window recycling plant in Runcorn, UK.

As the old saying goes, “Out with the old, in with the… Rotajet engineers’.

PVCR Ltd, member of the Rehau Group, are the largest recycler of UPVC in the North West, processing over 13,200 tonnes of postconsumer doors and windows per year. 

Making it their mission to “minimise waste at every opportunity”, PVCR stays finger-to-pulse with the PVC market; ensuring that their operation is running at maximum efficiency. On top of this, Rehau Group is one of the world’s largest polymer-based solutions providers with sites in more than 170 locations, across 54 countries worldwide.

And with amounts of post-consumer PVC growing year on year, the market is showing increased opportunity across the UK. But when business expands, so should the machinery. In order to correlate with these levels of expansion, PVCR have opted to increase their capacity and maximise the productivity of their recycling facility.

To help in this mission, PVCR has been working in partnership with machine manufacturers, Rotajet Systems Ltd, at their plant in Runcorn, UK. Undertaking this project under lockdown restrictions, Rotajet Systems managed to stay on track for the install and say they were happy with the results.

Rotajet Director and Project Manager, Carl Mason, says of the project “it was a successful install and was delivered on time, to a good quality. This was achieved by working alongside PVCR and Amis to identify key areas that could be upgraded to meet the throughput requirements of the operation.”

In this case, the throughput requirements were to increase the existing capacity by two thirds; resulting in a 66% increase in the amount of PVC being processed daily.

To achieve this, Rotajet worked alongside engineers at PVCR and granulator supplier Amis to identify the key restrictions and areas to improve in the plant, leading to a number of machinery upgrades and installations.

Some of these updates included; installing a new granulator and dryer, upgrade to PLC, as well as other various electrical updates and machine commissioning. After months in the making, the project was successfully commissioned and signed off over Easter, meaning that PVCR can continue to be the largest PVC recycler in the UK.

With a similar perspective on the project, Operations Manager Ceri Davies has said that “Recycling of PVC window frames is a tough business and the demands on equipment is severe. However, Rotajet has continually installed equipment to plan, on-time and with the expert engineering knowledge and flexibility necessary for such undertakings.

Post-installation, Rotajet has provided thorough and detailed recommendations to remediate issues and snags as well focus tenacity to resolve on-going issues.”

The success of these updates has even led to prospects of a future partnership between PVCR and Rotajet, with Carl Mason saying, “Rotajet continues to work with the site to install and develop the current system and maximise productivity with a varied waste stream”

How could Super Deduction save you money on capital investments?

Super Deduction is a new policy rolled out by the UK government to encourage businesses to invest in new plants, machinery, and other qualifying equipment over the next two years. 

What makes the new ‘Super Deduction’ so super, you might ask? Well, as happens, there are quite a number of reasons. 

Coming into effect from 1st April 2021, the new Super Deduction will offer tax relief to companies who invest in qualifying capital assets, with expectations to kick-start the regrowth of the UK economy. Since experiencing a drastic decrease of 11.6% in business investment between Q3 of 2019 and 2020, the UK government has been discussing ways to rebuild the economy after the COVID-19 pandemic. 

Chancellor Rishi Sunak stated that these changes would “not raise the rates of income tax, national insurance, or VAT”, but instead would introduce “a tax policy that is progressive and fair”. By offering a more appealing tax relief such as Super Deduction, it is expected that companies will move to increase their capital expenditure which will in turn lead to the recovery of the UK economy following the Coronavirus pandemic. 

Predicted to last until the 31st March 2023, the super Deduction scheme is “anticipated to stimulate £25bn in business investment in the UK” according to Director of PwC, Portia Pierrel, and is “expected to benefit capital intensive businesses” in particular. 

How will the Super Deduction work?

Announced in Budget 2021, the Super Deduction has been designed as a generous tax structure to incentivise companies to invest in certain qualifying assets such as those listed below.

dryer being fed by a friction washer

Examples of Qualifying Assets:

  • Machinery 
  • Plants
  • Office equipment
  • Electric vehicle charging points 
  • Vans, lorries, and trucks
  • Building tools
  • Factory equipment
  • Solar panels 
  • Refrigerators 
  • Compressors

The new scheme will allow companies to claim 130% capital allowances on qualifying main rate plants and machinery, and 50% for plant and machinery in the special rate category. 

In practice, this new measure means that £2.47m of tax savings could be claimed from £10m of qualifying assets, compared to a saving of £497,800 in previous years.In another example, where a company receives a £100k profit and invests £10k in qualifying assets, they will be eligible for tax relief on the amount of £13k. 

What Happens Next?

In Budget 2021, it was also announced that the Corporation Tax would rise from 19% to 25% as of April 2023. In the meantime, the Super Deduction will encourage companies to invest now rather than later. 

This has been causing many companies to prepare a new business approach to align with the new regulations in order to maximise its positive impacts. Sources report that this has already happened to such an extent that share prices in BT had risen by 7% following the 2021 budget speech; perhaps as a result of the anticipated rise broadband claims on capital expenditure. 

We’ve seen a similar correlation at Rotajet, with a marked increase in interest for recycling plants and machinery materialising as we get closer to the 1st April 2021. 

As the Super Deduction is now just around the corner, companies are gearing up to prepare for what is to come. With some businesses pulling deals further up the pipeline to make the most of the new policy, and others putting out feelers for new assets as a direct result of the Super Deduction, one thing is for sure: it’s going to be a busy few years for the manufacturing industry! 

Key Takeaways:

  • The new tax ‘Super Deduction’ will be in motion between (and including) 1st April 2021 and 31st March 2023
  • This new measure has been designed to stimulate economic growth through encouraging companies to invest more widely
  • Companies can claim 130% capital allowance on main rate items, and 50% on special rate items
  • The new scheme will incur a cost of £25bm to the Treasury
  • Qualifying assets including items for company use, including items such as; vans, office furniture, plants, machinery, and work-related tools
  • It is expected that companies will move investments up the pipeline to cash in on the tax relief offering 
  • Corporation Tax will rise from 19% to 25% in April 2023

Rotajet equipment will qualify for these Super Deductions as a main rate asset and could be a great next investment for your business. 

Visit our dedicated websites for recycling machinery, container washing equipment, separation technology, and degreasing machinery to prepare for the introduction of Super Deduction. 

Read our article on the Plastic Packaging Tax for information on what the new plastics tax could mean for your company.

The Plastic Packaging Tax and What it Means for the Recycling Sector

Plastic packaging

In a bid to reduce virgin polymer use in plastics, the UK government announced back in 2017 that a tax on single-use plastic was to be outlined and enforced over the coming years. 

Fast forward to 2021 and the proposed ‘Plastic Packaging Tax’ is now set to commence from 1st April 2022, creating important changes that UK manufacturers, importers, and consumers should be aware of. 

After almost 4 years in the making, exact conditions detailing how this tax will be enforced have been agreed by the UK government with expectations to “transform the economics of sustainable packaging”, according to Chancellor Philip Hammond. 

The Chancellor has also stated that “we must become a world leader in tackling the scourge of plastic littering our planet and our oceans”. Other key figureheads in the industry have agreed that introducing a new approach to managing plastic is necessary, with the Chief Executive of UK recycling at Suez, David Palmer, saying the Chancellor has “recognised that a systematic change is required”. 

This comes following a recent upsurge in both social and political movements towards creating a global circular economy. With public figures from David Attenborough to Greta Thunberg working to increase public awareness on environmental issues such as climate change, the impacts of plastic packaging have become a key focal point to address in creating a circular economy. 

Outlines of the proposal

Since receiving 162,000 responses to the original proposal back in 2017, the government has been defining the small details that make up the Plastic Packaging Tax. At Budget 2018, one such factor outlined that any plastic packaging containing less than 30% recycled plastic would be taxable at a rate of £200 per tonne. 

In this instance, liable plastic is being defined as ‘plastic by weight’ and will also apply to both plastic packaging which has been manufactured in the UK and that which has been imported, whether the product is filled or unfilled. 

To help out smaller businesses, a threshold has been set which exempts companies manufacturing or importing less than 10 tonnes of taxable plastic per year. Further thresholds and exemptions are also forecasted to be put into place, however these are expected to be based on statistics gathered from one years’ monitoring of the policy. 

What happens next?

While the Plastic Packaging Tax was originally designed as a measure to reduce the amount of virgin plastics being manufactured and imported to the UK, some are now concerned about the knock-on effects that this may have on consumers. 

The UK government has stated that the Plastic Packaging Tax is “not expected to have any significant macroeconomic impacts” (UK Gov). However, the exact way in which the tax will play out within the commercial sector is yet to become clear, with expectations that the tax may be passed onto the consumer being discussed by multiple sources. 

This could be translated through an increase in the price of goods, a charge on plastic usage, or a number of other ways which could in turn lead to a shift in the way in which consumers purchase groceries and other items. 

Another major knock-on effect that the Plastic Packaging Tax has had is visible within the recycling sector. As a manufacturer of recycling equipment, at Rotajet we have witnessed firsthand the increase in interest for recycling plastic across the UK, with Company Director, Colin Steward, stating that he has seen an “unprecedented rise in demand for our machinery from plastic producers”.

Other leaders in the recycling industry have reportedly experienced a similar influx, which comes as no surprises as major companies such as Coca Cola and The Coop have recently pledged to move towards a greener way of packaging. For Coca Cola, this means achieving 100% recyclable packaging by 2025, with at least 50% of their plastic bottles being made from recycled plastic. On a similar trajectory, The Coop has also committed to using a minimum of 50% recycled plastic in PET plastic pots, trays, and punnets, and a minimum of 50% recycled HDPE for items like milk bottles by 2021. 

While a number of key details are still yet to become clear, the overarching goals for the Plastic Packaging Tax appear to have been well received by figure heads across the industry, with expectations that both the economic and environmental impacts of the measure will be a promising step in the right direction. 

Key Takeaways: 

  • Plastic Packaging Tax to commence on 1st April 2022
  • The tax is likely to impact: UK plastic manufacturers, importers, and possibly consumers
  • The tax is to be enforced on any plastic packaging containing under 30% recycled material
  • Plastics containing under 30% recycled material will be charged at £200 per tonne
  • New legislation aims to incentivise a reduction in the manufacturing and use of virgin plastics
  • The tax will only apply to companies handling over 10 tonnes of plastic packaging per year
  • A one year review of data could lead to minor changes in the details of the policy, such as exemptions and thresholds defining who is liable to paying the plastic tax

To found out how our products can help you to prepare for the Plastic Packaging Tax, see our range of plastic recycling equipment here, or visit our dedicated site for Drum, IBC, and Small Container washing here.

Chemical Recycling

The “plastic problem” is spiralling out of control. 8700 million metric tonnes now choke our landscape causing unprecedented damage to our planet’s ecosystem. With recent changes to international policy and the coronavirus pandemic, plastic recycling is becoming a vital operation for every nation in the world

operation of a plastic recycling plant

Plastics are molecularly stable and as such require energy to break them back down to a molecular level. To create a successful method, it is imperative that measures are taken to ensure the solution does not cause more ecological damage than good. Many international projects are being undertaken to develop and simplify the chemical recycling process.

At Rotajet we are proud to be involved in creating a greener, more efficient world. Not only have we spent our time developing more efficient mechanical recycling technologies, but we are also involved in forging new technologies as part of the ISOprep project.

ISOPREP Project, which involves a collaborative consortium of TWI, London South Bank University, Floteks Automotive, Fraunhofer-Gesellschaft, Sabanci University of Turkey, Rotajet Systems Ltd., Bioniqs Limited, Axion Group, Graz University of Technology, and CeNTI – Centre for Nanotechnology and Smart Materials. The project is working to develop an innovative alternative to disposing of polypropylene products into the landfill by creating a method to chemically recycle this material.

You can find out more about the ISOprep project and other news on chemical recycling on the link below.

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