Plastic waste issues boosting business for recycling equipment firms

Today is a good day to be in the plastics recycling business. Tomorrow as well. And for the foreseeable future.

With rising interest and appetite for recycled-based products and packaging, demand remains strong for plastics recycling equipment as 2021 looks to turn into 2022. Company officials contacted on the Fakuma trade show floor to discuss market conditions do not expect that to change anytime soon.

Buyers and sellers throughout the plastics industry returned to the halls and hallways of Fakuma 2021 in Friedrichshafen, Germany, after COVID-19 canceled last year's show.

This is the first time since 2018 that Fakuma has been held as the K Show in Düsseldorf, Germany, took center stage in 2019, just before the virus took hold. Fakuma typically is held in October every two out of three years but does not complete against the behemoth that is K.

The booth for Gneuss Kunststofftechnik GmbH is situated in a front corner of Hall 6, where many recycling related equipment companies are located at this year's Fakuma. The station provides a front-row seat to the daily traffic of the show.

That's where Andrea Kossmann spent her time on the first day of Fakuma. It was getting late in the day, and Kossmann had just finished speaking with someone when she turned her attention to current market conditions when asked for an assessment.

COVID-19 certainly took a bite out of business when the pandemic struck during the first part of 2020, but the Gneuss marketing official said sales have bounced back nicely and continue to be strong, she said.

A main driver that's keeping recycling equipment companies busy even during COVID-19 times is approaching European Union regulations requiring recycled content in PET beverage bottles. These containers must have at least 25 percent recycled content by 2025 and 30 percent by 2030 in a set of rules that also will require tethered caps on single-use plastic products to help cut down on litter and increase recycling.

"The other reason," Kossmann said, "is marketing."

Companies are keen to present themselves as being ecologically friendly to consumers who have developed a strong interest in the issue regarding the products they buy. She indicated residents throughout Europe are more and more interested in sustainability, but the focus is even more intense in countries including Germany, Austria and Switzerland.

"It's a lot of pressure now as our climate is getting worse and worse and everyone is aware of it," Kossman said about citizens wanting more environmentally friendly products.

One particular group is instrumental in creating change and expects companies to move away from any older ways that were not as environmentally aware, she said. "Younger people are saying you can't do that anymore."

Regulations as well as this public pressure and interest are working together to create demand for recycled products. And that creates the need for more plastic recycling equipment.

Starlinger & Co. GmbH sees a direct correlation between increased business and the two factors that Kossman cited. Companies, Starlinger Regional Sales Manager Armin Villa said, are eager to add recycled content to their packaging to satisfy consumer demand.

"We, as a machine supplier, are very happy — obviously," he said about demand for PET recycling equipment. Starlinger has sold out manufacturing capacity for the past year in that segment. "We've been quite successful in the market. We are happy with what is happening in the market. There is a question of how long will this last," Villa said.

Recycling equipment manufacturers are not without challenges, however, as the impact of COVID-19 continues. While demand for machinery remains strong, there still are worldwide transportation difficulties creating logistics headaches.

Shipping lead times have stretched out and there are no guarantees on transport pricing and ultimately availability these days, Villa said.

Over at Lindner Washtech, demand for machinery has been strong for a solid year after the initial impacts of COVID-19 wore off, said Sales Manager Marcel Willberg.

COVID-19 initially brought order postponements and delays from customers, but that all changed by last fall, he said.

Lindner Washtech saw business double compared with the initial months of COVID-19 and is up this year over 2019 numbers.

"First of all, [recycling] plants are getting bigger. In the past, the washing capacity was on the smaller amounts," he said. And not only are customers ordering larger-capacity machines, they also are buying more machines as well. "We can be happy with the current situation."

Consumer demand, Willberg agreed, is helping drive the recycling equipment market as those buyers are proving to brand owners that they are willing to pay a premium for products that use recycled content in their packaging.