Back to earth… On 8 November Federec, the professional federation of recycling companies, presented the data on the sector’s activity in 2021, as well as the prospects for the next two years. In total, recycling involves 2,450 factories spread across the country, accounting for 32,600 jobs. If the sector is concentrated with 22% of the workforce employed in five large groups, 13% of them are employed by regional groups and 65% remain in SMEs and SMEs.
The recycling situation, presented by François Excoffier, president of Federec, could change significantly. Indeed, after a year 2021”rebound“, in his words, “the current geopolitical context, inflation and the energy crisis pose a large number of uncertainties on the economy in general, and on the recycling sectors in particular, dependent on both supply and demand“, He explains. “It is very difficult to make predictions for 2023confirms Thierry Cochet, president of Federe non-ferrous metals. For him, in fact, reductions or suspensions of industrial production can cause a drop in the demand for recycled products. But this same slowdown in production can lead to a shortage of waste, and therefore to an increase in the prices of recycled and transformed products…
Contrasting situation depending on the sectors
Furthermore, the situation may evolve differently depending on the sector. For example, the paper-board sector is expected to see factories open next year. This is the case of a new production site resulting from the acquisition of the Alizay plant (Normandy) by the VPK group. However, Stéphane Panou, president of Federec papiers-cartons expects “difficulties», with falling prices and orders from card manufacturers. Another specific situation, that of plastic: “the prospects for 2023 may seem boring, gloomy, but one can be a little more optimistic. Investments have been made in France and in Europe. Today we have more means than before to resist for a long time with our factories.“, estimates Christophe Viant, president of Federec Plastics.
Beyond the dangers associated with geopolitical and economic uncertainties, the sector also fears the difficulties generated by the evolution of the regulatory framework for the business. In fact, new measures are planned for 2023, for various sectors. At European level, the revision of the directive on WEEE, waste electrical and electronic equipment should start shortly. In France, it is the legal system of the EPR, Extended Producer Responsibility, which provides for the creation of eco-organisations by producers, to finance or organize the prevention and waste management of these end-of-life products, which is in question .
In textiles, the system will evolve. And it should be implanted in the building. However, already,we have a feeling of concern about the place of REP in our business“, underlines François Excoffier. “Some red lines are crossed“Estimate the president of Federe who promises answers, including legal ones. In fact, for the federation, “the development and creation of new more commercial than financial REPs are now in danger» the recycling industry.
Of the “great numbers»
In the face of the feared difficulties, 2021 promises to be long remembered as an exceptional year for the recycling sector. It was a “dynamic year“, with some “lively markets with large volumes and very high prices for different materials» which they generatedgreat numbers“, emphasizes François Excoffier. “For the first time we have exceeded the threshold of 10 billion euros in turnover, reaching 10.8 billion euros, after a 42% growth compared to 2020. This result is the effect of the double increase in activity and pricessays Manuel Burnand,
CEO of Federec.
Various sectors have benefited from this exceptional growth. The metal industry, for example, collected 12.9 million tons of materials, or 15% more than in 2020. The evolution of the sale of recycled materials followed a similar trend. As a result, turnover from the sale of materials excluding services reached 2.7 billion euros, or 62% more than a year earlier. “This is the result of the increase in tonnage sold and the increase in pricesconfirms José de Azevedo, President of Federec Metal. The non-ferrous metals sector (aluminum, stainless steel, copper, etc.) followed the same trend, Thierry Cochet points out, with a turnover of 3.9 billion euros in 2021 (+60% compared to the previous year).
As for the tonnage collected, it reached 2.05 million tons, or 21% more than in 2020. In terms of price, the records are historic: +45% for aluminum and +19% for copper. The same trend in other sectors, such as paper and cardboard, driven by e-commerce, which exceeded one billion euros (+95%) or plastics, whose turnover grew by 79.7%, reaching 260 6 million euros.
But the record trends of 2021 fade into 2022, the year marked by the return to a more normal situation across the recycling sector, in terms of activity and material prices. For example, for paper and board, “in the first half the sector maintained its momentum. But on the second the context is much more unfavorablecommented Stéphane Panou. Christophe Viant believes that the plastic recycling business is in “logic of rebalancing at the end of 2022After reaching unprecedented prices in 2021, the price of the material collapsed during the summer of 2022.
