Ineos announces new recycled polymer range as UK tax deadline looms

UK-based petrochemicals manufacturer Ineos has created a flexible packaging solution which contains significant recycled content, ahead of a UK mandate on minimum recycled content in plastic packaging.

Ineos has partnered with packaging company Coveris to produce a new stretch-hood packaging film, containing a minimum of 30% recycled material and conforms with upcoming legislation, the company said Feb. 9.

The product has undergone a series of trials at the company's manufacturing facility in Grangemouth, Scotland, and is intended for distribution of Ineos's palletized polymer resin.

The trials demonstrated that the new recycled stretch-hood covering for pallets performs to the same standards as a previous solution made from 100% virgin material. It has been introduced ahead of UK legislation for packaging materials that will require a minimum content of recycled polymers.

The government announced last July a tax from April 2022 on plastic packaging manufactured in or imported into the UK that does not contain at least 30% recycled plastic. Plastic packaging is that which is predominantly plastic by weight.

Demand for recycled plastics across various sectors saw strong growth in 2021 amid the upcoming minimum content legislation and greater focus on tackling plastic waste following the pandemic lockdowns.

Key recycled polymers such as natural R-HDPE and R-PP pellets and R-PET clear flakes, all commonly used in consumer packaging applications, have seen the strongest growth, reaching record high premiums to their virgin equivalents and gaining Eur90/mt ($100/mt), Eur40/mt and Eur100/mt since Jan. 4, according to S&P Global Platts data.

While R-LDPE translucent pellets, which are commonly used in clear film applications, remain at a discount to virgin LDPE, demand remains firm and market sources have said that they are beginning to question whether available supply will be sufficient to meet all customers' demands across Europe.

Amid the stick and carrot of legislation and mostly higher prices, feedstock remains a problem for recycled plastics.

UK recycling capacity has ramped up -- around 150,000 mt will come onstream in 2021 -- but supply remains challenging, Philip Law, director general of the British Plastics Federation, told S&P Global Platts in December.

The government has faith in the ability of industry to innovate but it needs consistent waste collection, Law said.