Axion Polymers points to potential Brexit benefits

Manchester, United Kingdom-based Axion Polymers says Brexit “offers fresh opportunities” for the U.K. and its manufacturers to secure their raw material supplies, such as recycled plastics, from a stable domestic market that can “stimulate a circular flow of materials.”

The plastics recycling firm states that potential difficulties in transporting material across borders after March 29, 2019, “should become a driver for growth in the domestic market, as purchasers seek to reduce inward material supply chain risk.”

Axion Director Roger Morton says freedom from regulatory controls and external policies, coupled with the ability of the U.K. to set its own rules, could encourage greater investment and enable the U.K. to “get ahead of the rest of Europe” in material recovery and resource security—provided there is strong government leadership.

Axion produces recycled-content Axpoly polymers derived from U.K. end-of-life vehicles (ELVs) at two sites in Manchester. Plastics are extracted from end-of-life cars and other metal scrap at its SWAPP facility in Trafford Park and further refined in Salford, where recent laboratory equipment investment is further enhancing the products’ properties and quality, according to Axion.

“With 31.5 million cars currently on U.K. roads, our future ELV feedstock for our recycled polymers is assured,” says Mark Keenan, Axion Polymers business development manager. “That can only be good news for U.K. companies seeking to use locally sourced plastic raw materials that can go back into a range of products, from new cars and electrical equipment to construction products.”

Adds Morton, “Brexit is inevitable now. Although complications could arise, we are taking a positive approach. British companies should focus on the opportunity that leaving the EU offers and how we can make the most of our resource sustainable position.”

Rogers points to the steel industry as an example. The U.K. has annual consumption of 12 million metric tons of steel versus annual ferrous scrap arisings of 11.5 million metric tons. This market could be much more “circular” than the existing export of scrap and import of finished steel model. Similarly, demand creation for the use of recycled polymers in new automotive, electrical and building products could encourage further investment in more processing plants such as Axion’s.

While material quality controls, such as REACH regulations and other standards, should remain “mirrored with Europe,” Morton says, he adds there could be an opportunity to “take the lead by designing and implementing a set of regulatory measures that drive the transition to a circular economy here.”

Such measures could involve heavily modulated producer responsibility obligations for brands that make the most effort to change to fully recyclable designs and/or utilize high levels of recycled content. “This would require vision and a brave government with strong leadership,” states Morton, “but in an uncertain world, what’s certain is that material would be available in the U.K. for use in the U.K.”

One of the long-term benefits of Brexit, he says, should be taking measures to prevent the “mass export” of plastic packaging scrap and WEEE (waste electrical and electronic equipment), and start investing in recycling infrastructure in the U.K. as an environmental goal. With 63 percent of collected U.K. plastic packaging scrap is currently exported, the country is short of around 10 to 15 large-scale consuming destinations to handle that volume, according to Axion.

Morton also says the U.K. does not have enough energy-from-waste capacity to handle the low-grade plastic scrap stream. Thus, strategic government thinking and stable long-term policy measures and clear goals remain a necessity.

He says there is an opportunity for the U.K. government to drive the development of recycling demonstration and pilot plants. Adds Morton, “U.K. businesses need to wake up to these future possibilities and start talking to suppliers like us that can offer a secure supply of material. It’s competitive on price, performs to the same standard as virgin material – and it’s low carbon.”

Morton continues, “We’ve seen an increase in inquiries in recent months, and there’s a lot of interest from U.K. manufacturers in what we can offer. Despite current uncertainty around Brexit, we remain upbeat about the opportunities to trigger more material moving within the circular economy in the U.K.”

Axion Polymers is part of the Axion Group, which develops and operates resource recovery and processing systems for scrap materials. The group works with clients in the recycling and process industries on the development of new processing and collection methods.