Page 34 - Plastics News April 2017

INTERNATIONAL NEWS

Legislation, measures adopted by large consumers boost Europes

recycled polymer demand

combination of factors including legislation and measures to promote recycling. Germany, which already
A measures adopted by some of the largest consumers of generates 18 million mt/year of plastics waste, introduced
polymers has raised the demand growth rate for recycled an ordinance in mid-2016 that raised waste collection and
plastics polymers in Europe to above that of virgin grades, recycling targets.
according to a report by Platts. Industry sources say a there
has been a drive toward a recycled polymer industry in
Europe over the past five years as the US has developed a Dow completes construction of
shale-gas-based petrochemicals industry. However, there
are several factors hampering the growth of the recycled world-scale ethylene production
polymer industry. In an interview with S&P Global Platts, facility in Freeport
Mark Garrett, the CEO of Austrian petrochemicals producer
Borealis, said recycling would be one of the strongest he Dow Chemical Company has announced the
measures for the European petrochemicals industry to Tcompletion of the construction phase of its new, world-
rise to the challenge posed by the burgeoning shale based scale ethylene production facility in Freeport, Texas. The
petrochemicals production in the US. Garrett said that Company reached this milestone within one week of the
some of the recent steps like an ordinance introduced by originally planned date, which was set approximately two
the German government in mid-2016 to improve waste years ago. Dow’s ethylene unit is now progressing through
plastics collection and recycling, besides commitments the commissioning phase, with start-up expected by mid-
made by some of the major consumers such as Unilever year. “This tremendous milestone represents the Dow
and Proctor & Gamble has been a shot in the arm to the team’s unwavering ability to deliver on our commitments
recycling industry. "The demand for recycled polymers is to meet the needs of our customers, generate value for
growing at a rate much faster than the virgin grade," he our shareholders and to create opportunities for our
said. Garrett added that Borealis is trying to expand its employees,” said Andrew Liveris, Dow’s chairman and
recycling business both by acquiring smaller companies CEO. “The Freeport ethylene unit is the cornerstone
and making greenfield investments. Borealis said in a of ou r U S$ 6 bln
separate e-mail that it asked some consultants to estimate investment in the U.S.
Gulf Coast. Our growth
the growth in recycled plastic polymers and they reached investments leverage
a figure of 6-15% between 2016 and 2017.
the advantaged shale
The demand growth for virgin grade polymers in EU gas supply available in
is estimated at a much lower 1.1%. The total demand the U.S., and represent
for polymers such as polyethylene and polypropylene thousands of new jobs and significant economic value,
in Europe is currently estimated at 27.4 million mt a including exports of approximately 20% of our U.S.
year. An exact estimate of demand for recycled polymers production.”
is not available, but mandates among polymers buying “I’m incredibly proud of our team’s efforts to complete
companies to use recycled product in their assembly lines the complex construction phase of Dow’s new state-of-
ranges between zero and 100%. the-art ethylene facility. This unit will further enhance
Dow’s industry-leading integration & provide the
The EU has set up recycling several targets for the entire
block. While the economic block has a common target critical building blocks to bolster our competitive
advantage in targeted consumer-led markets, including
of recycling 75% of its packaging waste by 2030, it plans packaging, transportation, infrastructure and consumer
to recycle 65% of its municipal waste by 2030. Countries care,” said Jim Fitterling, Dow’s president and chief
such as Germany and the Netherlands have adopted operating officer.

Plastics News | April 2017 34