The imposition earlier this year of stringent quality standards for the import of recyclable materials into China, including waste paper, prompted fears that waste paper stocks could build up in the UK and that markets might collapse.
But, despite some difficult weeks, the UK looks to have overcome most of the challenges resulting from adjusting to the quality standards. For the UK’s waste and resource business Veolia, while the markets were “disrupted” the company seems to have weathered the storm and is positive about the thinking behind the quality requirements.
Kevin Bell, material sales manager for Veolia UK, explains that the company recycles more than one million tonnes of paper arising in the UK. Of that, a significant part is from the retail and commercial sector, from many household names.
Within the European Union, Veolia will handle in excess of four million tonnes of material from the municipal, commercial and retail sectors, making paper “a very important material for the company.”
Mr Bell explains: “Our expertise is turning waste into a resource and providing a sustainable business solution for our suppliers. So despite the operational challenges coming out of China’s quality move, Veolia would embrace the general environmental improvement programme that lies behind this.”
Now, he feels that other regions will be coming closer to China in terms of improved quality controls and requirements although China has “now achieved the status of being the premier market in terms of quality.”
Quality
Veolia appears to have reacted swiftly to the restrictions and quality requirements.
Mr Bell considers that the company has “quality” enshrined in its activities. “We have enhanced our green team, which is a mobile resource advocating high quality and offering ‘pastoral care’ and advice to suppliers across the customer spectrum in order to enhance and strengthen quality and sustainability. In particular, we recognise the need to provide education and training – that helps ensure all of our facilities and suppliers function to the prevailing regulations.”
The green team is able to work with facilities across the customer spectrum including municipal and retailers to enhance and strengthen quality and sustainability.
Work on quality is not just within the UK. Veolia, which operates internationally, has a strong corporate governance and CSR policies, Mr Bell emphasises. “We visit China and the regions we supply, to ensure they are compliant with our corporate governance and CSR policies. We have austere due diligence as a plc.”
Markets
While actions have been made in the domestic market to help ensure a good quality of material arising, Mr Bell says that having an established customer base across the papermaking sector has helped ensure outlets in recent months. “Material has continued to flow although values have been temporarily distorted during a brief period of uncertainty.
“It has not been a crisis but a temporary market distortion largely caused by uncertainty – it has corrected itself as the picture became clearer.”
And, he appears positive about demand for the next few months. “Demand for finished product remains strong. And, although it is too early to say whether demand for paper for recycling will remain firm over the next few months, we are entering a period of public holidays in Europe and the summer period generally, so we can expect a good demand, which should all help to stimulate the market.”
MRFs
Processing of materials in MRFs has come in for some criticism this year with some suggestions that paper from MRFs would not find a home.
Mr Bell is positive about the MRFs. Their role, he says, is “to separate the multi-fractional recyclable that come through the commingled stream. Veolia has invested for many years in these facilities and continues to do that with ongoing improvements.
“The mixed papers generated are compliant with the MRF Code of Practice and we also continue to work with local authorities to improve the quality all the time as it is important to separate fractions at the MRF to produce a separate raw material for reprocessing.”
“Veolia,” he says, “will now seize opportunities to serve the market through new regulations which offer new opportunities to those who want the standards.”
For Mr Bell, the materials recycling facilities (MRFs) are sound providers of material for recycling while he is aware of an ongoing need to improve quality.
“Improving quality is always a good thing. I think that the UK is unique in that a large quantity of arisings come through the materials recycling facility infrastructure, which benefits from the Code of Practice agreed jointly between industry and the government. It is enforced and policed by government departments and from the Code we can measure and evidence quality.”
This Code is increasingly recognised, according to Mr Bell who notes that “the Chinese government like it and it means we have new standards of evidence that we can meet prior to despatch.”
In terms of whether arisings meet the standards required in world markets, he says they are doing so. “The new levels and requirements are clearly presently setting China apart as the world’s premier market and are raising the bar. The UK can measure and evidence that it is meeting the standards. And, UK retailers have long-established that level of quality and the attractive price premiums for high quality material will help that evolve further.”
He adds that the waste paper produced also conforms to EN643, a benchmark standard for international shipments.
Dialogue
Mr Bell is pleased with the support of suppliers of material in the UK. He highlights that the company has maintained a regular dialogue with all of its supply chain, making sure that they have been kept abreast of developments in terms of both legislation and markets and as the waste stream continues to evolve.
He remarks: “Suppliers have taken this on board and I think they have accepted that there is a quality message out there. It is our responsibility to keep this message updated.
“The new levels and requirements are clearly presently setting China apart as the world’s premier market and are raising the bar.”
Kevin Bell
Veolia UK
“We should also be mindful of the broader environmental improvement programmes in China in this area. There is the 13th five year environment plan, which started in quarter one of 2016. Alongside this we are aware of specific actions such as National Sword and the new regulations that were effective this year.”
As he heads out for another visit to China, Mr Bell asserts: “We have excellent contacts in China and continue to visit regularly not only for Duty of Care, corporate governance and CSR purposes but also to maintain dialogue with existing customers and the regulators. We are observing that China continues to assess the improvements it has made and make adjustments and further progress as necessary.”
Sustainability
In terms of fibre sourcing, Mr Bell says that the market is continuing to evolve. In the incoming municipal streams, for example, we are seeing less newspapers and there is a greater degree of packaging. And, he also observes that the supply chain – in terms of product design and presentation for packaging – is becoming more focused on sustainability.
“Veolia is keen to support this activity. The sustainability aspects of packaging along the supply chain are important and we also welcome any initiatives that improve quality of the packaging for recycling and use as a further resource,” he concluded.
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