Prior to 2000 the UK domestic market had seen decades of a steady decline in its recovered materials reprocessing capacity but this had all changed by 2010 with growth across most sectors. Since that date, however, there has again been a return to the decline in infrastructure.
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Newsprint had seen additional capacity at Shotton; Palm building an entirely new mill in Kings Lynn and ongoing businesses with SCA Mondi in Aylesford and Abatibi in Cheshire. As we stand today Aylesford and Abatibi have gone completely and Shotton has significantly reduced capacity.
Packaging, although not so severely hit, has over the same time line, had similar consolidation with the closure of SCA East Mill; DS Smith Wansborough and Sonoco in Halifax. There has been increased capacity at DS smith in Kemsley and Smurfit Kappa in Kent and a new mill put down by Saica in Manchester but the overall capacity is on a downward trend.
Plastics
On the back of increasing recycling targets and volumes, significant investment had gone into the plastic sector, particularly bottles. ECO on the East Coast, Closed Loop in London, Biffa Polymers in the North East; Jayplas in the midlands and Viridor in Manchester all took on additional capacity but the collapse of the oil price; the change in requirement from some of the major bottle manufacturers and the ever increasing demands on quality all put pressure on the market. As we stand today Closed loop has gone, ECO has undergone a change of ownership and a new business model changed to receiving high quality pre-sorted PET and low prices are putting pressure on collection volumes.
Ferrous
The collapse of the UK steel market is well documented and well publicised but it is of note that even in the very best of times infrastructure investment in this sector was limited and as a result of that lack of investment when trading times become more difficult it is almost impossible to compete. Almost all UK ferrous is exported.
Non ferrous
The high value of non-ferrous even in the most challenging of markets has kept this sector in line but apart from the Novelis plant in Warrington little-large scale investment has gone into this sector.
Glass
The glass sector continues to hold its own in a challenging market with UK cullet capacity broadly remaining in line with the volume being generated. The UK reprocessors had always struggled to generate sufficient clear and brown glass for its domestic consumption with export being the relief valve for green glass. Notwithstanding that the UK lost one of its few major plants in Harlow.
Moving forward
After a decade of declining waste volumes we are now starting to see growth coming to both the public and private sectors and we now need Government to look to stimulate investment in re processing infrastructure capacity. WRAP was originally established for just this purpose but the recent declines have taken circa 2 million tonnes of capacity out of the domestic market over the past five years. During that same period of time recycling rates have not declined nor has the legislation driving it. Local authorities are at a steady 44-45% recycling; producer responsibility is setting ever higher targets for the private sector and landfill tax is edging towards £100 per tonne. All of the drivers are there for a strong and sustainable domestic reprocessing sector but the Government needs to correct the over stimulation of some markets such as AD, incentivising traditional long standing sectors to compete in the 21st century.
There is a great story to tell in available volumes, transport infrastructure, proximity of ports for exporting finished goods, worldwide technological advancements and a domestic market of close to 70 million people.
In 2014 the UK GDP was measured at 2,998 Billion USD. If that is not an incentive for investment heaven knows what is.
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