Source: pagev.net

The plastics industry aims to become a global leader in recycling

With direct and indirect exports totaling 15 billion dollars, the plastics industry, one of Turkey’s top exporting sectors, aims to increase its market share in recycling. The Green Transformation and Technology Association (PAGÇEV), PAGEV, and SEM Plastic Chairman Yavuz Eroğlu stated that the RePlast Eurasia Plastic Recycling and Raw Materials Fair, to be held in Istanbul from May 2-4, will mark the beginning of a new era in this regard, emphasizing that Europe is the priority market for recycling.

Eroğlu, who described waste as “the remedy for the current account deficit and environmental protection,” added: “The European Union will make the use of 25-30% recycled raw materials mandatory by 2025. From now on, Turkey will need a strong track record to be able to receive waste from the EU for recycling purposes. Turkey has the potential to become a global power within 10 years.”

The Turkish plastics industry, which produces nearly 11 million tons of plastic products annually for the packaging, white goods, automotive, electronics, construction, and defense sectors, has focused on supporting its production success through recycling. Yavuz Eroğlu, Chairman of the Green Transformation and Technology Association (PAGÇEV), emphasized that waste today has an economic value greater than ever before and stressed the need to establish systems that encourage consumers to participate in recycling.

Eroğlu noted that finding waste is already difficult and will become increasingly so. “Waste is the remedy for the current account deficit and environmental protection. In the near future, there will almost be ‘waste wars’ between countries to obtain it. Waste will become more valuable than oil. Many brands from different sectors will enter intense competition to access recycled raw materials. We must offer solutions similar to deposit systems that encourage consumers and involve them in the recycling process,” he said.

TURKEY’S MAIN PROBLEM IS THE UNREGISTERED WASTE COLLECTION SYSTEM

 

Eroğlu noted that the growing global sensitivity to waste will be shaped by regulations in European Union (EU) countries. “By 2025, the European Union will make the use of 25-30% recycled raw materials mandatory in sectors such as automotive, white goods, and textiles. In order for Turkey to increase recycling, it will need a good track record not only by improving domestic waste collection and building waste management systems but also to be able to import waste from the EU. Over the next five years, because Turkey is a member of the Organisation for Economic Co-operation and Development (OECD), if it does not produce a strong report, the export of waste from the EU to Turkey will be banned.

To improve waste management and contribute to the recycling process, the deposit system should be accelerated, and an incentive and penalty system should be implemented. If applied fairly, this will allow for much faster adaptation to this transformation. Many assume that waste is separated in Europe due to individual awareness. In reality, Europe has very strict penalty systems. Turkey’s main problem is the unregistered waste collection system. Our share of EU exports as Turkey is still quite low. We must first reach a saturation point in this market.

Turkey has the potential to become a global power within 10 years. Even though our own petrochemical raw materials are insufficient, we rank second in Europe and sixth in the world in the plastics sector. If we have reached this point in the plastics industry, I believe we can also succeed in becoming a recycling hub,” he concluded.

THE ONLY COMPETITOR AT THE RECYCLING FAIR IS THE NETHERLANDS

 

Highlighting the RePlast Eurasia Plastic Recycling and Raw Materials Fair, which is planned to be held from May 2-4 as part of Turkey’s ambition to become a global recycling hub, Yavuz Eroğlu stated that the fair has also attracted significant international interest.

“Recycling fairs are generally held in many places around the world. But ours is specifically focused on plastic recycling. In the Netherlands, a plastic recycling fair has been held for seven years, and in that time they were only able to open two halls. We asked ourselves if we could achieve seven years’ progress in one year, and for the first edition of our fair, we chose halls larger than theirs,” Eroğlu said, continuing:

“Our fair is gaining recognition in Europe as well, and we expect great interest. Even now, online registrations from abroad are breaking records. One of our main goals is to turn the fair into a central hub; we will also have a congress and awards. Big brands from various sectors will be present. Our aim is to promote the use of recycled materials. We also want to highlight many of our technology-producing brands in the recycling industry at the fair. Currently, our main competition is Europe. We want to capture a share of the European market, and we believe we can. Over the past eight years, in plastics, we have surpassed Spain, Italy, and France. Turkey has an industrial workforce, so we believe we can also achieve our goal of becoming a global center for recycling.”

WE ARE MANAGING THE GRANULE MICROPLASTICS COMBATING PROGRAM

 

Drawing attention to Operation Clean Sweep (OCS), an international, voluntary program run by the plastics industry that covers the entire value chain of the sector with the aim of reducing plastic pellets released into nature, raising awareness, and sharing best practices, Erdoğlu stated:

“PAGEV is the representative and implementer of this environmental program in Turkey, which is applied in many developed countries around the world. In this way, we are preparing our companies today for the regulations the EU will soon introduce. The purpose of the program is to ensure that plastic granules, particles, flakes, and powders in Turkey are carefully managed throughout the entire value chain—from production to transport and recycling—so that they do not enter rivers or seas.

By participating in OCS, companies commit to following best practices, implementing systems to reduce the loss of plastic granules, and fulfilling their role in protecting water resources. Within this framework, the OCS Turkey certification program, prepared by PAGEV, is being implemented.”

SEPARATE LOANS SHOULD BE PROVIDED FOR VALUE-ADDED PROJECTS

 

Stating that combating inflation is essential and that exporting is indispensable during this process, Eroğlu said:

“Separate loans should be provided for high value-added projects. Investments below 1 billion Turkish Lira are not accepted under the investment-committed advance loan (YTAK). Improvements are needed in YTAK; the annual allocated fund totals 100 billion TL, and each project must be at least 1 billion TL. The YTAK program has an annual limit of 100 billion TL. A total limit of 300 billion TL is planned over three years. If the average project is 2 billion TL, only 50 projects can be funded in a year. This number is very low for Turkey. In a period when access to financing is becoming more difficult, the 100 billion TL limit should be increased if possible and if resources allow.”

INCREASE IN PRODUCTION, DECLINE IN EXPORTS

 

According to data from the Central Bank of the Republic of Turkey, capacity utilization in the plastics sector reached 75.8% in November 2023. In the first 11 months of 2023, compared to the same period of the previous year, production in the plastic products sector increased by 4.5% in terms of quantity, while imports rose by 9.5%. China ranked first in imports both in terms of quantity and value, followed by Germany, Italy, South Korea, and France. During this period, exports declined by 1.7%, partly due to the drop in petrochemical raw material prices that had surged during the pandemic. Germany ranked first in exports, followed by the UK, Iraq, and Italy.

Domestic consumption increased by 6.9%, while the decline in the trade surplus was 5.7%. Considering the first 11 months of the previous year, production is expected to rise by 4.5% and imports by 9% by the end of 2023, while exports are projected to decrease by 1.7%. By the end of 2023, plastic product production is estimated to reach 10.9 million tons, domestic demand 9.1 million tons, imports 771 thousand tons, and exports 2.614 million tons.