The chemical recycling sector in Europe can reach cost costs with virgin plastic

The most prominent new report issued by Bain & Company is a great growth opportunity for the chemical recycling industry in Europe, with the expectation that it will reach equal cost with the production of Virgin Plastics during the next two or three decades.

This comes because the industry has a current evaluation of more than 400 billion euros ($ 455.5 billion) in cumulative capital expenditures.

The report confirms that although recycling costs currently high recycling in Europe – more than twice the costs of virgin Polyolefins production – there is a possible window for plastic companies to become an early driver in the market.

Political interventions can be useful in bridging the division between demand, similar to sustainable diesel delegations and fuel. The report indicates that the increasing mixture of the states can significantly increase the penetration of the chemical recycling market, achieving more than 15 % of the plastic market share by 2040.

The Bain & Company report determines three major strategies for plastic producers to drive chemical recycling. First, companies must cooperate proactively with the value chain partners to create opportunities to abandon infiltration, secure distinctive waste currents and high -value customers. It can be difficult for competitors to be repeated.

Second, industry leaders are encouraged to communicate with the organizers to influence policies that support their business goals and reshape the public dialogue on plastic, while emphasizing their sustainable potential when managed with responsibility.

Finally, the report advises the producers to be adaptable, indicating that they are trying new business models, resource strategies, and partnerships such as ten -year infiltration agreements with dynamic prices, to lay the basis for future success.

With the maturity of the industry, developments in technology and operational experience are expected to drive cost efficiency.

Achieving the cost equation with marginal producers in Europe will require global capital investments at least 400 billion euros in a basic scenario, with an additional allowance of about 270 billion euros. This installment includes total additional fees for prices paid by consumers, organizational frameworks and investment in margins by the value chain.

“Our analysis shows that chemical recycling can become competitive with virgin production once a cumulative global size reaches 650 million metric tons (tons) of recycled polymens through the heat dissolution, and the assumption of virgin virgin price of 1,250 euros for the metaphors The portal and the wider fees are aimed at.