Executive Summary

PUBLISHED MAY 2015

Pla

sti

cs R

ecyc

lin

g

in S

ou

th A

fric

a

2014 2014

Executive Summary

&

Survey of the South African Plastics Recycling Industry

in 2014, conducted by Plastix 911 for Plastics|SA

EXECUTIVE SUMMARY

COPYRIGHT: ALL RIGHTS RESERVED This survey is the property of Plastics|SA. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, recording or otherwise, without the prior permission of Plastics|SA.

May 2015

Executive Summary

Plastics Recycling in SA – 2014 Page c

PLASTICS RECYCLING IN SA - EXECUTIVE SUMMARY

Introduction

To provide information to its members, government and the wider community, Plastics|SA

collects data annually on plastics manufacturing, imports, local processing and exports for

reprocessing through the Plastics Recycling Survey. In 2015, Plastix 911 was commissioned by

Plastics|SA to conduct the survey for the 2014 calendar year.

The survey continues to give an excellent picture of the flow of plastics products in South Africa,

the state of the plastics recycling industry and the recyclate markets. The survey is seen as a

valuable tool for the promotion and knowledge of the industry, forward planning and informs

policy development. It also supports product stewardship commitments and assists in setting

targets for end-of-life solutions.

Key findings

The key findings of the 2014 Plastics|SA Plastics Recycling Survey are as follows:

A total of 1 400 000 tons of plastics from domestic production and imported materials were

converted in South Africa in 2014. The total amount is the same as that of 2013 although

individual materials have increased and others decreased in tonnages.

A total of 315 600 tons of plastics were diverted from landfill in 2014. This is an increase

of 9 % from 2013.

The diversion from landfill rate was 22.5%, increasing from 20.0 % in 2013.

Of the 315 600 tons of plastics diverted from landfill, 284 520 tons (90.2 %) were

mechanically recycled in South Africa and 31 087 tons (9.8 %) were exported for recycling

elsewhere. The proportion of plastics recycled in South Africa has decreased from 97.6 %

in 2009 to 90.2 % in 2014. Domestic plastics recyclers are concerned about the tonnages

exported from South Africa.

Executive Summary

Plastics Recycling in SA – 2014 Page d

Post consumer materials still provide the most recyclables. 62.7 % of all materials

recycled originated from post-consumer sources and a further 17.2% originated from post-

industrial sources.

Formal employment has increased by 34% to 6037 workers. Informal employment

increased to 47 420 bringing the total number of jobs sustained through plastics recycling

to 53 457 – an increase of 11.4 % since 2013.

The majority of plastics that were recycled in South Africa continue to be used locally to

manufacture new products, mainly films (packaging, building and industrial) and pipes.

Plastics going to landfill decreased in 2014 by 3.2 %.

Total domestic plastics consumption and recycling

The figures for total annual domestic consumption and total annual plastics recycling from 2009

to 2014 are presented in the following table:

Table 1: Annual South African plastics consumption and recycling from 2009 to 2014

2009 2010 2011 2012 2013 2014

Total tons converted 1 280 000 1 312 700 1 300 000 1 370 000 1 400 000 1 400 000

% growth (conversion)

2,6% -1,0% 5,4% 2,2% 0,0%

Total tons locally recycled 215 199 228 101 230 111 254 054 260 930 284 521

% growth (recycled)

6,0% 0,9% 10,4% 2,7% 9,0%

Recycling rate 16,8% 17,4% 17,7% 18,5% 18,6% 20,3%

Waste exported 5 575 9 054 9 758 14 744 18 919 31 087

% growth (waste exported)

62,4% 7,8% 51,1% 28,3% 64,3%

Total tons diverted from landfill 220 774 237 155 239 869 268 798 279 849 315 607

Diversion from landfill 17,2% 18,1% 18,5% 19,6% 20,0% 22,5%

Tonnages landfilled 1 059 226 1 075 545 1 060 131 1 101 202 1 120 151 1 084 393

% growth (landfill)

1,5% -1,4% 3,9% 1,7% -3,2%

The stagnation in domestic consumption is probably due to the decline in economic activity and

the shift from local manufacturing to the importation of finished and semi-finished plastics

products.

Executive Summary

Plastics Recycling in SA – 2014 Page e

Materials diverted from landfill

The data for the total diversion from landfill is presented in the following graph. Overall

diversion rates increased last year and the share of local recycling declined slightly since 2013.

Figure 1: Annual South African plastics diverted from landfill from 2009 to 2014

Source of Recycled Plastics

The 284 520 tons of plastics recycled locally in 2014 were sourced from both pre-consumer and

post-consumer sources.

Figure 2: Recycling by material source in 2014

2 009 2 010 2011 2 012 2 013 2014

Waste exported 5 575 9 054 9 758 14 744 18919 31 087

Total tons recycled 215 199 228 101 230 110 254 053 260 930 284 520

Recovery rate 17.2% 18.1% 18.5% 19.6% 20.0% 22.5%

0%

5%

10%

15%

20%

25%

30%

35%

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

Div

ersi

on

rat

e

Ton

nag

es r

ecyc

led

Ex-factory14%

Post-Industrial17%

Post Consumer

63%

Toll & In-house6%

Executive Summary

Plastics Recycling in SA – 2014 Page f

Materials Recycled

The total quantities of locally recycled plastics by polymer type, from all sectors, are presented

in the following graph. PE-LD/LLD is the most recycled material, followed by PE-HD, PP and

PET.

Figure 3: Materials recycled in South Africa from 2009 to 2014

Employment in plastics recycling industry

Both formal and informal jobs sustained by plastics

recycling are included in the graph below. The overall

productivity is measured against formal labour and was

47.1 ton per employee; down from 57.9 % in 2013.

(Only 60 % of the recyclers were surveyed in 2013 and

their data was extrapolated, whereas 2014 is actual

reported figures from 221 recyclers, i.e. more smaller

recyclers included.) There are 2.3 times more men

PE-LD/LLD PE-HD PP PET PVC PS & PS-E Other

2009 92 381 36 547 43 000 21 013 15 490 3 389 3 379

2010 101 454 39 733 38 614 26 103 15 830 3 256 3 112

2011 95 852 38 979 40 282 30 690 16 704 3 213 4 388

2012 98 971 45 950 47 080 35 786 16 812 3 394 6 060

2013 97 778 50 519 46 331 41 302 16 205 3 796 4 998

2014 98 563 62 809 50 718 42 911 18 488 4 801 6 231

0

20 000

40 000

60 000

80 000

100 000

120 000

Ton

nag

es r

ecyc

led

Figure 4: Formal jobs in plastics recycling in South Africa

Male Female

Payroll 3191 1295

Staff 654 275

Contractors 350 272

0

1000

2000

3000

4000

5000

Nu

mb

er o

f em

plo

yees

Executive Summary

Plastics Recycling in SA – 2014 Page g

employed than women. The nature of the job requires physical strength. However, the women

make better sorters.

Figure 5: Formal and Informal jobs sustained through plastics recycling

Market applications for recycled materials

Applications are many and varied. Wherever the quality of the recyclate is such that it can be

used to produce a satisfactory end product, at a lower cost than using virgin material, it will be

used. The criteria are whether the final product will have the necessary strength, aesthetics and

lasting qualities required for a specific application. The variety of market applications are

illustrated in the graph below.

Figure 6: Market applications for plastics recyclate in South Africa in 2014

2009 2010 2011 2012 2013 2014

Informal employment 34 500 36 600 40 950 42 342 43 488 47 420

Formal employment 4 841 4 812 5 062 5 047 4 510 6 037

Tons/employee 47.1 50.3 45.5 50.3 57.9 47.1

0

10

20

30

40

50

60

70

0

10 000

20 000

30 000

40 000

50 000

60 000

Ton

s p

er e

mp

loye

e p

er a

nn

um

Nu

mb

er o

f p

eop

le

Blow moulding2%

Sheeting2%

Polywood & Wood composites2%

Shoe soles and floor tiles3%Exports

4%

Toll & In-house4%

Other4%

Tapes, Fibres and Filaments

12%

Pipes14%

Injection moulding -Crates, Domestic wares, Chairs &

Other25%

Films - Packaging, Building and Agricultural

28%

Executive Summary

Plastics Recycling in SA – 2014 Page h

Recommendations on the Way Forward

The plastics recycling industry will need to rethink certain aspects and actions, for example:

Pay more for recyclables – as more money moves down the value chain, it becomes

more feasible to pick up waste, volumes increase and the local recyclers will be able to

compete with export parity prices.

Improve and measure the quality of the recyclate – the converter will be able to pay

more for recyclate as the origin and properties of the material puts him in a better

position to utilize it in the best possible application at a reduced risk.

Charge more for good quality recyclate – where the properties of the product are

known, the product is in demand and meets expectations, the free market principle

needs to be applied. Recyclate needs to earn better revenue for the manufacturer to

enable him to access resources and produce better quality, allowing the industry to

create its own momentum.

Think and behave like professional raw material suppliers – give the product a specific

name, package a superior product that is in demand in packaging that reflects the

contents, inform the buyer and meet the needs of the user. Participate in industry

activities and live up to the ethics of professional businessmen.

Communicate recycling requirements to brand owners and product designers, listen to

their needs and try to accommodate each other.

Establish collection networks and assist with separation at source projects – without

good networking, good volumes of good quality post-consumer recyclables will not

increase in volume and will not be retrievable from the solid waste stream.

Research alternative recycling technologies – not all products can be made from one

material, one layer and be perfectly recyclable. Plastics have high calorific values and

can successfully be used as fuel, but only once all other avenues have been

investigated. Keep plastics ‘plastics’ for as long as possible.

Invest in more energy efficient equipment, especially wash plants and water treatment

facilities – water and electricity are not going to get any cheaper or any more abundant

Executive Summary

Plastics Recycling in SA – 2014 Page i

and it is an essential component in the recycling process. Make the best of what is

available, measure the usage and act upon facts and figures.

Live the talk – BE the largest polymer supplier in Southern Africa.

The complete Plastics Recycling Survey report is available from Plastics|SA at

R500 per copy. Contact us on +27 11 314 4021 or via www.plasticsinfo.co.za