4- R PET Irineu GlobalPET ICIS LATAM 2013_2 PET Recycling in Brazil and Latam

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7/23/2019 4- R PET Irineu GlobalPET ICIS LATAM 2013_2 PET Recycling in Brazil and Latam http://slidepdf.com/reader/full/4-r-pet-irineu-globalpet-icis-latam-20132-pet-recycling-in-brazil-and-latam 1/18 Recycled PET: assessing the impact on the industry as a whole - A closer look at the Latin American R-PET market  – evolution of R-PET as an alternative source to virgin PET; - Review of Brazilian and Mercosur legislation to R-PET on bottle to bottle applications (food grade and non-food grade); - Perspective on challenges to increase the PET recycling index in Brazil By Dr. Irineu Bueno Barbosa Junior Owner of Global PET Reciclagem S.A.

Transcript of 4- R PET Irineu GlobalPET ICIS LATAM 2013_2 PET Recycling in Brazil and Latam

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Recycled PET: assessing theimpact on the industry as a whole

- A closer look at the Latin American R-PET market – evolution of R-PET as an alternative source to virgin PET;

- Review of Brazilian and Mercosur legislation to R-PET onbottle to bottle applications (food grade and non-food grade);

- Perspective on challenges to increase the PET recyclingindex in Brazil

By Dr. Irineu Bueno Barbosa JuniorOwner of Global PET Reciclagem S.A.

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 Brazilian PET Recycling and it’s particularities: -Recycling index is now close to 60% of total consumed on packaging.

Source: www.abipet.org.br 

Recycled PET: assessing the impact on theindustry as a whole

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Source: www.abipet.org.br 

Textiles38%

Insaturated and Alquil Resins

24%

Food / Non FoodBottles18%

Laminates6%

Strapping Tapes6%

Pipes2%

Others6%

R-PET Final Uses in 2012

Recycled PET: assessing the impact on theindustry as a whole

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Brazilian PET Recycling and it’s particularities: 

- Recollection policy is based on poor people and not in public systems;

- Economy growing and unemployment decreasing is leading PET Bottles

to higher recollection costs.

-National Solid Waste Policy has

not changed this reality until now;

- Probably the supply chain of raw

material will collapse and some final

uses will migrate to otheralternatives as raw material.

- New opportunities, see www.clubedareciclagem.com.br

Recycled PET: assessing the impact on theindustry as a whole

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 Year Net price of bottles bales(R$/Kg) (US/Kg)

Var. peryear (%)

RecyclingIndex * (%)

Var. peryear (%)

2009 1,01 0,47 55,6%2010 1,28 0,70 27% 55,8% 0,36%

2011 1,52 0,91 19% 57,1% 2,33%

2012 1,76 0,90 16% 58,9% 3,15%

2013 2,15 1,00 9% 59,5% ** 1,02%

2009 to 13 1,01 to 2,15 0,47 to 1,00 113% 7,01%

• Acquisition prices increased 113% within 5 years;• Recycling index is no more sensible to price increase.

Recycled PET: assessing the impact on theindustry as a whole

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Regular PET Flakes

Applications

Low specification:

- Laminates;

-Fibers;

- Strapping tapes;

- InsaturatedResin

Competitor: VirginPP, PVC, PS, PET,

PTA, Chinese Fibers

Super-washed PETFlakes

Applications

Highspecification:

- Laminates;

- Fibers;

- InsaturatedResin

Competitor: VirginPP, PVC, PS, PET.

PTA, ChineseFibers

PET – PCR BottleGrade

Application:

Bottles

Competitor:

Virgin PET

Recycled PET: assessing the impact on theindustry as a whole

Higher Production Costs

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Recycled PET: assessing the impact on theindustry as a whole

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• BTB market to food contact

 – ANVISA RDC 20/2008 established in

Mercosur the authorization to use PET-

PCR in direct contact with food;

 – In Brazil ANVISA is the sanitary authority

responsible to evaluate all process of

registration of BTB PET-PCR Resin;

Recycled PET: assessing the impact on theindustry as a whole

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• BTB Recycling – Obstacles to development:

 – Homologation process is new, confuse and highly

bureaucratic;

 – The tree steps to a recycling company homologateit’s product are:

Recycled PET: assessing the impact on theindustry as a whole

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• 1st Step – Approve recycling technology used:

 – Equipment may have FDA-NOL to allow the

technology, formalize the maximum concentration of

PET-PCR accepted;• Buy an equipment/technology already approved (doubt – 

 ANVISA may ask to do the challenge test again with Brazilian

raw material);

• Do the challenge test and conquer your own NOL (GlobalPET choice NOL # 133 / 2010).

Recycled PET: assessing the impact on theindustry as a whole

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2010 – FDA NOL # 133 Issued;

Recycled PET: assessing the impact on theindustry as a whole

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• 2nd Step – Approve Industrial installations to

food contact production:

 – Main requirements:

• Food contact ANVISA’S standards to production machinesand building structure;

• Traceability of all raw material used;

• Quality control by gas crhomatography of all batches / lots

produced.

Recycled PET: assessing the impact on theindustry as a whole

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• 3rd Step – Registration of final product :

 – Main requirements (to acid and non acid aqueous food

products):

• Total Migration tests (EN 1186-1, EN 1186-9);

• Specific Migration to Terephtalic Acid (SFS-EN 13130-2);

• Specific Migration to Mono and Diethylene Glicol (SFS-EN

13130-7);

• Gas Chromatography – Volatiles Profile;

• Sensory Analysis (ISO 13302:2003(E) and ISO4120:2004(E)).

Recycled PET: assessing the impact on theindustry as a whole

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• 3 steps to packaging producers: – Sanitary Authorization - Food contact ANVISA’S

standards to production machines and building

structure; – Traceability of all raw material used (PET-PCR resin,

preforms, bottles);

 – Register of final product (same procedure that

recyclers have to do – New requirement: Registeronly Preform or Bottle).

Recycled PET: assessing the impact on theindustry as a whole

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• Food producers: – Use only registered packaging;

 – To keep traceability documents of packaging;

 – Label may contain:• Producer identification;

• Traceability code;

• The expression “PET-PCR”. 

• So many bureaucracy generates… 

Recycled PET: assessing the impact on theindustry as a whole

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Recycled PET: assessing the impact on theindustry as a whole

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• Our future? – R-PET Industry depends on the raw material offer:

• Depending of public politics specific to correct destination of

all recyclable material;

• PNRS going this way.

 – Lower prices of Virgin PET / final products = Lower

possibilities to recycling in Brazil;

 –  Actual scenario:

• Some final applications (laminates & pipes) losingcommercial viability and returning to PVC/PP/PS;

• Larger producer of preforms has lower prices buying Virgin

PET.

Recycled PET: assessing the impact on theindustry as a whole

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GLOBAL PET RECICLAGEM S/ASÃO CARLOS - SP

Global PET would like to kindly thanks for yourattention.

Special thanks for ICIS Staff by the invitationand opportunity

Contact:

Irineu Bueno Barbosa Juniorwww.globalpetsa.com.br [email protected] + 55 16 3363-2000