Tough times for Dutch recycling sector: new facility canceled again
The Dutch recycling industry is in crisis. More and more recycling companies are having to close their doors.
Published on January 9, 2025
The Belgian-Dutch start-up Advanced Plastic Purification International NV (APPI) has canceled its plans to establish a recycling facility in the port of Ostend. This is because of competition with low-cost plastics from China. It highlights global pressure on European green initiatives.
The Ostend facility was designed to process 500,000 tons of plastic waste annually via maritime transport and would have created 110 jobs in the region. The project was well advanced, with final construction plans and ongoing environmental permits. The influx of these cheap materials from China fundamentally undermined the project's business model.
Europe is being flooded
The influence of cheap Chinese plastics has far-reaching implications for the recycling industry worldwide. Large-scale production and cheap labor allow these plastics to be produced at a low cost, flooding the European market. This makes it difficult for European companies, which focus on sustainability and environmentally friendly processes, to remain competitive.
Many more bankruptcies
The Dutch plastic recycling industry is in dire straits, resulting in a series of bankruptcies. Companies that once pioneered plastic waste reprocessing are struggling.
Recently, several leading recycling companies, such as Blue Cycle, Umincorp Polymers BV, Vinylrecycling (formerly BessTrade), and Stiphout Plastics, had to file for bankruptcy due to financial challenges and unfavorable market conditions. Despite their innovations and sustainable contributions, these companies could not compete with the low prices of new materials and imports from outside the EU. Fortunately, Ioniqa, another recycling company that went bankrupt, was able to restart.
Political calls
There are growing calls from the recycling industry and environmental organizations for stricter import duties on new plastic from non-European countries. In addition, subsidies or tax breaks are being proposed for European recyclers to keep them competitive. The question remains, however, whether these measures will come in time to prevent further bankruptcies.
Another pioneering plastic recycler faces bankruptcy amid challenges
While chemical plastics recycling shows promise, the practical implementation faces significant hurdles. Blue Cycle's experience mirrors these challenges.