Fromto: Belgian plastics recycler to close Houthalen site

Belgian plastics recycler Fromto will close its factory in Houthalen. According to the company, the site, where residual plastics are processed into new products, has been posting heavy losses for several years. Thirty employees are affected. The company cites the main reasons as the persistent price pressure on the European plastics recycling market, particularly from low-cost virgin material made from fossil feedstocks and cheaper recycled material imports from China.

According to Fromto, the entire European plastics recycling industry is under considerable economic pressure. In recent years, numerous new capacities for the production of virgin plastics have been built in the United States and the Middle East, intensifying competition with European recycling companies. In addition, the company points to imports of recyclates from China, which it says are up to EUR 200 per tonne cheaper than comparable European materials. These developments have significantly worsened market conditions in Europe and have already led to insolvencies or postponed investments in several countries.

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At the same time, Fromto refers to the regulatory framework in the European Union. Although the EU has set recycling targets and aims for plastics recycling to take place within Europe, the company believes that the existing rules are not sufficient to strengthen the use of recyclates quickly and across the board. Under current plans, a mandatory minimum recycled content for all single-use plastic packaging will not apply until 2030. In Fromto’s view, this timeline further undermines planning certainty.

According to the company, the closure decision does not initially affect the second site in Beringen. The facility there for processing plastic films from the blue PMD collection bag will remain in operation. For this site, Fromto is seeking an industrial partner who can contribute additional expertise to improve the quality of the recycled materials and further optimize operations. The aim is to secure the future of the Beringen site.

More information: bionerga.be, fromto.be

Fromto nv, Hasselt, Belgium

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