P&PRC2014: Opportunities in plastics

Some environmental groups have characterized plastics as a problem, pointing to pollution in the world’s oceans as one example and lobbying for banning single-use plastic bags in some communities.

Speakers during the session “The Outlook on Plastics” at the 2014 Paper & Plastics Recycling Conference, however, didn’t share such a view, with Ron Sherga of EcoStrate SFS, Dallas, instead describing this material as an “opportunity.”

Sherga said the biggest challenge in plastics recycling is end market demand. “Plastics have struggled with that,” he said. Plastics producers have left the work of recycling to other sectors, he added. “Metal and paper control more plastics than the plastics industry.”  

Further hampering recycling is a lack of collaboration, Sherga added.

Despite these barriers, he expressed optimism, saying, “Plastic is and will be the material of the future.”

Jim Glauser, associate director of IHS, said plastics recycling is affected by public policy, corporate initiatives, energy conservation, China and shale gas production, which he noted will positively impact virgin ethylene and PP (polypropylene) production costs and negatively affect polystyrene and encapsulated polystyrene.

He reviewed recycling rates across the world, noting that the PET (polyethylene terephthalate) recycling rate in North America was 19.9 percent. Central and South America lead the world, achieving a 39.7 percent recycling rate for this material, Glauser added.

“The niche will remain for recycled plastics,” he said. “Their end use is limitless.”

Lori Carson of Phoenix Technologies, Bowling Green, Ohio, said a number of plastics processors have been adding processing equipment and investing in capital improvements to address issues they are encountering, such as full-sleeve shrink-wrap labels.

She noted that her company’s yield from domestic bales of PET has declined to 62 percent as contamination from No. 2 through No. 7 plastic has increased.

Among the challenges Carson said she sees in regard to PET recycling are the diverse array of colors, shrink labels, barriers and lighter and smaller bottles. Additionally, the trend of declining soda consumption and growing water consumption present challenges to PET recyclers such as Phoenix, she said, as water bottles are generally thinner than soda bottles and use PET resin with a lower IV (strength).  

Tamsin Ettefagh of HDPE (high-density polyethylene) and PP recycler Envision Plastics, Reidsville, North Carolina, who also served as moderator of the session, offered her thoughts on the recent supply shortage of natural HPDE (high-density polyethylene), citing weather, a 4 to 6 percent decrease in milk consumption, the enforcement of California’s recycled content law and the commingling of color and natural HDPE to create a bunker for PP (polypropylene) at MRFs (material recovery facilities) as contributing factors.

While PP lacks a large clear or natural supply and commonly uses a number of additives, the material, offers the greatest potential for growth among plastics, Ettefagh said, noting that it is the most widely used resin.

The 2014 Paper & Plastics Recycling Conference is Oct. 8-10 in Chicago at the Marriott Chicago Downtown Magnificent Mile.