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Plastic recycler cuts out shipment middlemen

Plastics recycler Agyplas (AGP) has decided to ditch traders in Hong Kong and the UK and buy its waste plastics directly from waste management companies, factories and materials recycling facilities. The company, which is part of the international Agyl Group, has been planning this move for three months and company sources said that it was a response to new Transfrontier Shipment of Waste Regulations (TSWR) and a history of bad practice from existing exporters. Changes to the TSWR widened liability for exporting waste to include all those involved in the shipment process, so the company decided to take responsibility themselves rather than relying on traders to meet regulations. AGP commercial director Tomas Gere said: This is very important as before we could not be 100% sure about what we were buying. Now we are buying direct, we can choose what to buy and build transparency. The advantage is that we know exactly what we are buying, so we are exporting legally, which removes the grey areas and risk of being sold lower grades, such as kerbside instead of clean plastics. We can tell the waste source what can be exported or not, with transparency, so there is no risk. Commenting on the market impact Gere added: This is a big change in the market where Chinese factories, like us for example as we have partnering centres in Hong Kong and the UK, are now sourcing directly. With this new way of buying material, we can offer higher buying prices and avoid traders that export quantity instead of quality, or use tricks to make certain exports appear legal when they are not. So far Gere said that traders have appeared unconcerned or shown little interest in what they are doing. But he added: Other big companies may follow our lead. AGP extrudes most of the plastic it buys from the UK after segregating and cleaning it. It then bags the repro pellets produced and sells them to manufacturers. The company is present in the UK market and works with local extruders, but also has its own extruding units in Hong Kong and China.

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