Solutions Needed Now for the Recycling Sector

Companies like Umincorp and PET bottle recycler Ioniqa have already gone bankrupt, while Healix from Maastricht has nearly halted production to avoid a similar fate. "The last quarter was disastrous. While our production capacity increased, prices fell," says CEO Marcel Alberts. Healix processes discarded ropes and nets from the fishing and agricultural sectors into circular polymers for plastic. It had recently secured Coca-Cola as a major client, which plans to make its iconic red crates from recycled plastic. However, the soda giant is not transitioning all at once. "We received a trial order, and it performed well. We expect this to expand across Europe, but it just takes time. Still, we need clients like these who are willing to pay a premium price," Alberts explains.

Solutions Needed Now

Due to low plastic prices, customers—mainly large chemical companies—are reluctant to pay more for recyclates. Additionally, the obligation to mix recyclates into new plastic production in the Netherlands will not take effect until 2027.

The danger is that by the time this legal requirement comes into force, the Netherlands may no longer have a recycling industry. "The companies that need to take on this task and that we will need in the future are struggling severely," says Marc Spekreijse, director of Circular Plastics NL (CPNL).

CPNL was launched with €220 million from the National Growth Fund to help businesses and institutions scale up and innovate. A new €30 million subsidy round will start early next year, but this alone is insufficient. "We can provide subsidies, but they require co-financing. The business case is currently negative, so no one is willing to invest. That’s why we cannot wait any longer. Solutions must come now," Spekreijse asserts.

Guarantee Scheme

The sector is looking to the government for solutions. In a video message, State Secretary Chris Jansen for Public Transport and the Environment emphasized the importance of a circular economy. He expressed concern about the wave of bankruptcies among recycling companies. "It is extremely difficult to compete with the current low prices of fossil-based plastic. We must improve the market for circular plastic, and that’s why we are intervening—both at the European and national levels," Jansen said.

Jansen is working on a circular plastic standard to boost the use of recycled plastic. "This will give a significant push to recyclate usage. Companies currently struggling and in need of additional financing can turn to the guarantee scheme and receive support from the Climate Fund," he promised.

Click here for more on the perspectives of Karlo van Dam from the Ministry of Climate and Green Growth and Rinke Zonneveld from Invest-NL.