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International situation forces us to change tack
FROMTO closes the factory in Houthalen. The site where residual plastics are processed into new products has been heavily loss-making for several years. "We regret the discontinuation but unfortunately see no other option. The entire plastic recycling sector in Europe is under heavy pressure due to cheap virgin plastics and imports from China," says Philip Peeters, managing director of FROMTO. "The international situation is therefore forcing us to change tack," Philip Peeters continues. Fromto Houthalen has 30 employees.
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 neighbouring countries. The competition with cheap virgin plastics is enormous. In recent years, many new installations have been built in, for example, the United States and the Middle East. Here, new cheap plastic is made from crude oil. In addition, there is the import of recyclate (recycled plastics) from China, which is up to 200 euros cheaper per tonne than European recyclate. Both movements have a detrimental impact on the European market.
The European Union imposes recycling targets and wants plastic recycling to take place within Europe by the end of this year (with an export ban to non-OECD countries). "In order to work in a truly circular way, the European Union must shift up a gear and extend the reuse of recyclates to all products," Philip Peeters concludes. Only by 2030 will the European Commission introduce a minimum percentage for all single-use plastic packaging. "This has an impact on our operational reliability and forces us to close the factory in Houthalen-Helchteren," concludes Philip Peeters.
This decision has no direct impact on the operation of the other FROMTO branch in Beringen. The site where plastic films from the blue PMD bag are processed into reusable plastic will remain operational. In order to improve the quality of the recycled materials from this relatively new factory and to optimise its operation, an industrial partner is being sought. The knowledge and know-how of that partner must ensure that the operation of FROMTO in Beringen can be ensured for the future.
Note: This story has not been edited by The Polymerupdate Editorial team and is auto-generated from a syndicated feed.
