European plastics recycling industry facing collapse: PRE

The plastics recycling industry in Europe is facing "imminent collapse" amid a wave of plant closures due to rising volumes of cheap imports, excessive red tape, and mounting economic pressures, according to the Brussels-based industry organization Plastics Recyclers Europe.

Almost 1 million mt of existing European recycling capacity is expected to have been lost between 2023 and the end of 2025, according to the association, which represents the region's plastics recycling sector. The waste plastics processing industry in Europe represents approximately 13.2 million mt of installed recycling capacity and around 850 recycling facilities, with a combined turnover of over Eur9.1 billion, it said.

Surging imports of low-priced recycled plastics are denting demand for EU-made recyclate and "driving an increasing number of EU recyclers out of business," PRE said in a statement dated Aug. 27. "This is leading to a decrease in production and recycling capacity, compromising the survival of this strategic sector," it said.

In the first seven months of 2025, almost the same volume of nameplate plastics recycling capacity as for the whole of 2024 was closed down. The capacity lost in the period from January to July was also three times higher than that seen in 2023, it said.

"Forecasts for 2025 indicate zero net growth after years of rapid expansion, which signals a critical decline in momentum in the transition to a circular economy," it said. The Netherlands, Germany, and the UK have been the countries most affected by the downward trend, it added.

To turn around demand for EU recyclate and prevent further closures, policymakers must "urgently implement trade and market defence mechanisms, ensure consistent EPR rules, and strictly enforce third-party certification and harmonised penalties for non-compliant materials," according to PRE.

Additional measures are needed, it said, including steps to alleviate economic pressures on recyclers, such as access to cheaper, clean energy and the cutting of red tape to obtain and renew permits. Stronger customs controls and targeted incentives for investment are also "critical to restoring the sector's competitiveness," it added.

A collapse of the European plastics recycling sector would cause "irreversible damage to the environmental progress and innovation achieved over the past decade, jeopardising the achievement of the EU's climate goals and its long-term competitiveness," it said.

Plastics recycling plants have been closed by companies including Blue Cycle in Friesland, the Netherlands, Biffa in Sunderland, UK, and France's Veolia SA.

Industry headwinds

In addition to existing mechanical recycling facilities shut down, a growing number of planned chemical recycling projects for waste plastics in Europe have recently been scrapped amid concerns over future demand levels and their products' competitiveness compared with virgin plastics.

Finnish sustainable aviation fuels producer Neste said in early August it had scrapped plans to build a chemical recycling plant for mixed plastics waste jointly in the Netherlands with waste manager Ravago.

Dow, meanwhile, in August confirmed it had canceled its plan to build a 120,000 mt/year chemical recycling plant for mixed waste plastics with its recycling partner Mura Technology at Bohlen, Germany.

Vienna-based Borealis, meanwhile, said on Aug. 6 that it had paused its plans to develop a commercial-scale mechanical recycling plant at Schwechat, Austria, following a detailed evaluation of the project that confirmed that the facility would not meet expected performance targets under current market conditions. The Schwechat plant was set to open with a nameplate capacity of 60,000 mt/year for high-performance recycled polyolefins.

PRE had previously voiced its concerns in October 2024 over plant shutdowns and a potential industry collapse due to the pressures of weak demand and a growing influx of cheap imports.

Less than 30% of Europe's 32 million mt of waste plastics is currently recycled, according to UK-based chemical recycler Plastic Energy, which in late August bucked the gloomy outlook to produce its first batch of pyrolysis oil at a joint venture plant with SABIC at Geleen in the Netherlands. The plant is expected to be operating at full capacity by the end of this year, with a nameplate input capacity of 20,000 mt/year of mixed waste plastics.

The EU has a current goal under its Packaging and Packaging Waste Regulation (PPWR) for all packaging to be fully recyclable by 2030.

Platts, part of S&P Global Energy, last assessed European mixed plastic waste at Eur250/mt on Aug. 27, unchanged day over day and week over week.