The Dutch recycling industry is facing headwinds. Following  a series of bankruptcies of recycling companies, Belgian-Dutch start-up Advanced Plastic Purification International has cancelled its plans to establish a plastic waste recycling facility in the port of Ostend, Belgium.

A start-up cancelled its plan to build plastic waste recycling facility in Belgium. (Source: freepik)

The planned facility was designed to process 500,000 tons of plastic waste annually into new plastic applications and products. The project was well advanced, with final construction plans and ongoing environmental permits.

However, the project’s business model was said undermined by the influx of cheap virgin plastics from China.

“The market was flooded with these cheap materials. When recycled products become more expensive than virgin plastics, the business case collapses,” explained Dirk Declerck, CEO of Port Oostende.

More bankruptcies of recycling companies

Due to financial challenges and unfavorable market conditions, the Dutch plastic recycling industry has recently experienced a series of bankruptcies of recycling companies, including Blue Cycle, Umincorp Polymers BV, Vinylrecycling (formerly BessTrade), and Stiphout Plastics.

Despite their innovations and sustainable commitment, these companies could not compete with the low prices of new materials and imports from outside the EU.

There are growing voices from the recycling industry and environmental organizations for stricter import duties on virgin plastic from non-European countries. In addition, subsidies or tax breaks are being proposed for European recyclers to keep them competitive.