A slower growth economy and Operation Green Fence have combined to make the plastic scrap sector in China a difficult one in 2013.

Speaking to attendees of the 2013 China National Resources Recycling Association (CRRA) International Recycling Conference & Exhibition in early September, Zhang Xiujuan of Sublime China Information Co. Ltd. (SCI), said the market for plastic recyclers in China this year has witnessed “large volume reductions” and is “not getting stronger.”

Zhang estimated that many processors of imported plastic scrap are working at “50 to 60 percent operating rates” and “some are below 30 percent” of their operating capacity. She added that “margins and revenue are low and profit is reduced.”

Operation Green Fence and other “supply-side regulations” have both lowered volumes and increased operating costs, said Zhang. “Compared to 2012, shipments are reduced in both number and the size of the purchase orders,” she added. One exception was the month of July, when import volumes enjoyed a “huge increase” after the slow period from February to June, said Zhang.

Zhang told attendees that the third quarter of the year is typically the peak season for rigid plastic scrap imports but early indicators are that demand is “far from rolling.”

Domestic plastic scrap collection in China, on the other hand, is “increasing rapidly,” said Zhang. She predicted that, with the support of national policymakers, domestic plastic scrap recovery “will meet 70 percent” in the future in China.

Zhang portrayed China’s plastic scrap processing sector as fragmented, with 90 percent of the processing volume conducted by small and medium enterprises. She urged such enterprises to combine to create economies of scale. “We have to strengthen our brand and image,” Zhang said of the plastic recycling sector in China.

The CRRA 2013 China International Recycling Conference & Exhibition was Sept. 3-5 at the San Li New Century Grand Hotel in Hangzhou, China.

China’s Ministry of Industry and Information Technology (MIIT) has reportedly sent a notice to 67 papermakers that they must reach a consensus to cut 6.35 million tons of annual output from the national market.

According to a report in the China Daily newspaper, “the low-end papermaking industry has become a key target of the government’s new measures to cut industrial overcapacity.” The newspaper does not define what MIIT considers to be “low-end” papermaking.

The government request is similar to ones MIIT has made previously to the copper and aluminum smelting industries, the steel industry and to cement producers.

An MIIT official quoted by China Daily says the government believes the output cuts can help resolve overcapacity problems and prevent air pollution, suggesting older mills with higher emissions levels are being targeted.

The paper producers have not been given much time to determine how to cut output, as the mills targeted for closure have been given a deadline to eliminate excess capacity by the end of 2013.

“Authorities won’t allow the companies to transfer the overcapacity to other facilities, according to the ministry,” says the China Daily report.

The same report indicates the paper industry is being treated lightly compared to the steel industry, where MIIT sees excess capacity of more than 160 million tons, and the cement sector, where the ministry estimates excess capacity of more than 300 million tons.

Novelis Korea Limited, the Asia-Pacific operating unit of Novelis Inc., has won the South Korean Prime Minister’s 2013 Leading Resource Recycling Corporation Award. The award was presented at the Fifth Annual Resource Recycling Day, hosted by the Ministry of Environment at Hwaseong Temporary Palace of Suwon, South Korea.

The award, introduced by the Ministry of Environment and Korea Environment Corporation (KECO), is designed to recognize “eco-friendly companies that have taken proactive measures in preventing industrial waste through improved manufacturing processes and innovative green technology as well as reduction of actual waste produced by recycling and increased productivity.”

The award recognizes Novelis for its efforts to minimize its environmental footprint, including aluminum recycling, resource conservation and carbon emission reduction. Novelis’ Yeongju Plant, located in Yeongju, South Korea, is striving to cut the use of resources by using excess heat from its industrial processes to run its boilers.

In addition, Novelis built a pipeline to save and sell surplus steam created during the manufacturing process rather than releasing it into the air.

“Novelis is making every effort to help its customers reduce their CO2 footprints and deliver consumer products with less impact on the environment by providing eco-friendly aluminum products,” says Shashi Maudgal, president of Novelis Korea Ltd. and senior vice president of Novelis Inc. “Based on our corporate philosophy, which is rooted in sustainable business practices, Novelis will continue to deliver environmental benefits to the region, and lead the flat rolled aluminum industry in resource conservation.”

RiverRoad Waste Solutions (RRWS), a waste management and consulting firm headquartered in Tinton Falls, N.J., has hired Gregory Leon as the company’s vice president of sales. He will be responsible for the sale and marketing efforts for the company. Additionally, Leon will be involved in the company’s new product development and improvements for alternative mainstream markets, vendor selection and improving the company’s international partnership relationships.

Leon joins RRWS from Philadelphia-based PTR Baler & Compactor Co., where he served as director of sales and marketing. During his stint with PTR Leon helped develop the company’s domestic and international distributor program.

“I am thrilled to be part of the RRWS team,” says Leon. “My entire career has been spent in the recycling and waste disposal equipment field, and I look forward to continuing that tradition by providing a data driven approach in order to providing real solutions through the diversion of recyclables from our clients’ present day waste streams,” he continues. “RRWS is dedicated to providing superior customer service in the implementation and or enhancement of our partners’ sustainability programs.”

Dan McGowan, RRWS COO, says, “We are thrilled and very excited to welcome Greg to our team at RRWS. Not only will he bring a refined focus on customer relationships, selling and marketing processes, but he will also be an ideal role model for our employees and partners who come into contact with him. His innate ability to uncover core issues, resolve situations and grow our sales/marketing efforts will transcend RRWS into the market leader of recycling and waste disposal management services.”

Those wishing to contact Leon can email Gregory.leon@riverroadwaste.com or call 215-630-2965.