PETpla.net Insider 12 / 2022

EVENT REVIEW PETplanet Insider Vol. 23 No. 12/22 www.petpla.net 18 PET production in China will be in surplus by 7 million tons. That means all margins will be squeezed further. And there will be a bigger push to export excess capacity from Asia. In Europe demand and production are steady. But manufacturers will have huge problems in 2023 to run at full capacity, due to the huge increases in energy costs and possible power outages. PET and raw materials will again become more competitive from China (and a few other countries like Vietnam, Indonesia and Turkey) as Indian producers will have to face a return to higher import duties from January. The situation of recycled PET is totally different. There is lack of material today and that will remain also until the 2025 deadline (for the target of 25% rPET in beverages). The estimate is that Europe will need 400,000 t/a by then! Hardly a negligeable amount. Zanchi stressed the point that, apart from improving bottles collection, it will be necessary to facilitate import of flakes and rPET from outside Europe and relax a number of regulatory constraints which, today, are stifling any increase in the use of recycled materials in the bottling industry. The logistics situation also is still an issue currently but, at least, freight rates are appearing to drop week by week. Zanchi pointed to some final questions worth considering. Among them, the evaluation of the effect of the sanctions on Russia, the Dollar/Euro rate, the increase in all production costs making Europe less competitive, and support for speeding up a circular economy. PET industry – production, converter & bottlers The afternoon session of the webinar opened with a first round table on the current situation facing the PET industry. Mr Hemant Sharma (Reliance) explained the efforts done in India to develop bottle and plastic collection and organise a PET recycling industry which is becoming a model for Asia and the world. Mr Hikoji Kosaka (Toyotsu PET Recycle S. – TRS) showed the activity of its new company, an investment of the Toyota Group into PET recycling, with a brand-new capacity of 40,000MT/a. Mr Christian Mayr (Alpla) underlined that the industry in Europe will be losing competitiveness but also consumers, and that increasing imports is merely a short-term remedy. Then Mr Dirk De Cuyper (Resilux) stressed how also his Group is already well into recycling activity, and called for more protection of the recycling chains in the old continent to make them sustainable and more competitive than virgin products. Distribution & consumers trends The second round table, on topics related to ‘Distribution & consumers trends’ started on a high note with the presence of Mr Hans Van Bochove (Coca-Cola). He explained that the limits imposed for 2030 on recycled contents in beverage bottles are just the minimum: people expect to get 100% of recycled material. But the fact is that there is not enough rPET in the market, and not of the right quality. Then Van Bochove brought some breaking news, disclosing that new regulations are coming soon from the EU Commission, particularly on packaging directives and collection. They will be game changers. There will be a more decisive push towards the encouragement of re-usable packaging (beverages will have an obligation for minimum 5% re-use). Most important is that the involvement of retailers towards collection will be considered an important necessary step forward, by requesting Member States to define how they propose to enact their own deposit return system rules. Mr Coert Michielsen (Refresco) agreed that it is possible to do more in Europe. Collection rates must be improved, and Japan and India are an example. The new rules of the EU, as explained by Van Bochove, will ensure better quality material for bottles too. In his opinion the EU should make it mandatory for retailers to accept collecting, making them more responsible on this issue. Closing this intriguing round table was Mr Philippe Gruyters (EMD, European Market Distribution), who is opening the way for the very first direct presence of retailer opinion in the PET Day. Gruyters explained that retailers already have their own policies on packaging and the use of recycled content. They are open to dialogue and to contribute to improve the system. However, it is necessary to study together with the small and big suppliers how to proceed, and the decisions must be for the long term, avoiding changing policies every one or two years. Circular economy The third and final round table examined the relationship between the circular economy and the current legislation in Europe. Mr Werner Bosmans (Policy Officer Environment, EU Commission) stated how the European Green Deal deals with the circular economy not underestimating the value of plastic, and PET in particular. The EU Commission is also working on a policy for bio-based and biodegradable materials, and on new rules for safe recycling in food contact materials. He finally declared that the Commission is most certainly not against plastics, but aims at tackling their unsustainable use. Mr Antonello Ciotti (Petcore Europe) criticised instead the Com-

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