The international situation poses challenges for the entire plastic recycling sector in Europe and has already led to several bankruptcies or the postponement of investments in neighboring countries. Competition from cheap virgin plastics is fierce. In recent years, many new facilities have been built in places such as the United States and the Middle East, where cheap plastic is produced from crude oil. In addition, there are imports of recyclate (recycled plastics) from China, which is up to 200 euros per ton cheaper than European recyclate. Both trends are having a detrimental impact on the European market.
FROMTO is closing its factory in Houthalen. The facility, which processes plastic waste into new products, has been operating at a significant loss for several years. “We regret the closure but unfortunately see no other option. The entire plastic recycling sector in Europe is under severe pressure due to cheap virgin plastics and imports from China,” said Philip Peeters, managing director of FROMTO. “The international situation is therefore forcing us to change course,” Philip Peeters continues. There are 30 employees at FROMTO Houthalen.
The European Union has set recycling targets and wants all plastic recycling to take place within Europe by the end of this year (with a ban on exports to non-OECD countries). “To truly operate in a circular manner, the European Union needs to step up its efforts and extend the reuse of recycled materials to all products,” notes Philip Peeters. It is not until 2030 that the European Commission will introduce a minimum percentage requirement for all single-use plastic packaging. “This has an impact on our business security and forces us to close the factory in Houthalen-Helchteren,” concludes Philip Peeters.
This decision has no direct impact on the operations of the other FROMTO facility in Beringen. The site where plastic film from the blue PMD bag is processed into reusable plastic will remain operational. To improve the quality of the recycled materials from this relatively new plant and optimize its operations, an industrial partner is being sought. The knowledge and expertise of that partner should ensure that FROMTO’s operations in Beringen can be secured for the future.
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