PETpla.net Insider 07+08 / 2021

MATERIALS / RECYCLING PETplanet Insider Vol. 22 No. 07+08/21 www.petpla.net 18 rPET an export hit and prospects for definitive recycling regulations in China Preparations for competitive expansion at home The Chinese recycling firm, Guangxi Guolong Plastic Technology, is located just under 300 km north-west of Guangzhou near the city of Wuzhou in Guangxi Province. This pri- vately-owned business was founded nine years ago by its Chairman, Guo Jiawan, and specialises in the production of food-grade rPET packaging and cups for food and drinks products, as well as rPET sheets and flakes. The company also uses high-end recycling equipment from Europe. Although the firm is not yet profitable, Mr Jiawan sees prospects for long-term success and potential. We talked to him about opportunities, goals and the current state of recycling in China. Guo Jiawan was previously active in the real estate business and man- aged the city’s only 5-star hotel before founding Guangxi Guolong Plastic Technology and deciding to move into the recycling industry in 2012. “Environmental protection is ben- eficial to future generations, and I am very enthusiastic about it”, said Mr Jiawan. And the ambitious entrepre- neur has since invested quite a sum, US$ 124 million into his vision in the past eight years. “But we have not yet achieved profitability”, he added. We will soon learn the motivation behind this, but first, let us go back to the beginning. In order to gain a better under- standing of the global recycling industry, the company founder and his team first travelled to different parts of the world, including Europe, North and South America, as well as Asia and south-east Asia, where they acquired valuable experience in local environments, and on the implementation of recycling prac- tices and technologies. They visited test and development centres, including those of the plant manu- facturer, Tomra, and ultimately came up with ideas and concepts for their own company project, with a focus on recycled material for food-grade applications. Over the years, the result has been the establishment of a machine park that, according to Mr Jiawan, sets itself apart from all its competi- tors in terms of its capabilities and technology. “Our province alone gen- erates about 800,000 t of plastic waste annually, much of which is crushed and shredded by micro companies”, he says. “There have also been problems with existing, often outdated equip- ment and processing operations linked to all kinds of adverse ecologi- cal impacts that essentially breach China’s environmental protection reg- ulations. We, on the other hand, have installed a comprehensive recycling system in Guangxi and established dedicated recycling centres in the cities where we can centrally process collected PET bottle waste that meets government standards.” According to Mr Jiawan, process issues are the main problem facing the Chinese recycling world today given the existence of disparate meth- odologies and physical recycling com- peting with its chemical alternative. In addition, there is still a significant proportion of biodegradable plastics. As a result, the company is still heav- ily export-driven, serving customers Chairman Mr Guo Jiawan Aerial shot of Guolong Plastic’s premises