www.greentech.rs

Challenges in PET waste separate collection in Serbia

Mihail Mateski, MScMEOctober 9th, 2014 - Bucharest

• 100.000 tones PET bottles per year.

• 20.000 tonesothers types of plastic waste.

East - European leaderin PET bottle recycling

www.greentech.ro www.green-group.ro www.greentech.rs

We provide a complete set of services, in the following business areas:

Solid recyclable household waste collection biggest collector in Romaniaand Serbia of PET bottles waste, PE & PP packaging, WEEE (waste electrical and electronic equipment glass, wood, paper, etc.

GLASS110.000 tons/year

WEEE 35.000

tons/year

POLYERSTER

FIBERS50.000

tons/year

PET Strap5.000

tons/year

R-PET16.000

tons/year

PET100.000 tons/year

Mechanical treatment of waste East European leader for PET bottles and other polyolefin shredding and washing (100.000 tons/year), for WEEE recycling (including cables, batteries and lamps) (35.000 tons/year) glass waste recycling (110.000 tons/year).

WOOD ongoing

project

www.green-group.ro

www.green-group.ro

• 2002. GREENTECH plastic recycling

• 2004. GREENFIBER

producing PET fibers• 2009. GREENWEEE

WEEE recycling• 2010. GREENLAMP

luminaries recycling• 2013. GREENGLASS

glass recycling

Polyester (PET) fiber having wide application in furniture, textile, chemical and automotive industries.

Has a wide range of usage in construction industry, wood industry, paper and cardboard industry, metallurgy and pipes/cables manufacturing.

The advantages of PET strap against the other strapping (Steel, PP) are in excellent shock resistance, repeatedly curving capacity and long period stability.

PET strap band is designed to protect the workers from injuries while providing maximum load strength.

Polyester (PET) strap band

R-PET granules,substituting strictly imported virgin PET granules, and are utilized for food and beverage industry PET pre-forms production.

REPUBLIC OF SERBIA

• Area 88.361 km2

• 7.500.000 citizens• GDP per cap.: 5,200 $• GDP projections for 2014: -0,5%• Unemployment rate: 20%

• Headquarters: Novi Sad, Serbia• Factory: Mladenovo/B.Palanka• Capacity: 8.000 tones/year• Product: Hot-washed PET flakes• Investment: 4 million Euro• Number of Employees: 100• Market share: 60%

Greentech D.O.O.is established in 2005.

The first 5 years (2005-2009) of Greentech’s operations in Serbia were caracterised by unfavorable business and legal environment:

• Non-existing collection infrustructure.• Non-existing legal framework, set of Environmental laws voted

only in 2009 and implemented from 2010.• Public Utility companies not interested in separate waste

collection.• Small number of private collectors, many operating without

licenses.

Developement of Greentech’s collection network and succesfull business model were resulting from:

• Significant investments in collecting infrastructure.• Competitive and stable purchasing prices.• Secured payments and sales of recycled products.• Implementation of Know How in the collection and

recycling.• Cooperation with all sector stakeholders.• Educational campaigns for school children.

Major Utility Companiesin Serbia

PUBLIC:• JKP Gradska čistoća, Beograd• JKP Čistoća, Novi Sad• JKP Mediana, Niš• JKP Čistoća, Kragujevac

PRIVATE:• PORR, Leskovac, Jagodina• ASA, Kikinda, Lapovo • Brantner, Novi Bečej, Kanjiža

Collective scheme operators in Serbia

Operators Market share *

1 EKOSTAR PAK 49,3%

2 SEKOPAK 41,3%

3 TEHNO EKO PAK 6%

4 DELTA PAK 3%

5 CENEX 0,2%

6 EKOPAK SISTEM 0% **

* Acording to Environmental Agency report for 2013.** Established in December 2013.

9% 91%

2013

YEAR TOTALCOLLECTED

ton/year

UTILITY COMPANIES

ton/year

COLLECTED PET WASTE SHARE

COLLECTORSton/year

COLLECTED PET WASTE SHARE

2013 7.000 600 9% 6.300 91%

2012 5.800 1.300 22% 4.200 73%

2011 3.500 1.600 46% 1.900 54%

2010 2.700 1.200 45% 1.500 55%

2009 2.800 1.000 35% 1.800 65%

Collected PET waste by source2009 - 2013

Collected PET waste by source2009 - 2013

2009 2010 2011 2012 20130

1000

2000

3000

4000

5000

6000

7000

Total collected

Utility companies

Collectors

Growth of collected PET waste

20092010

20112012

2013

0

1000

2000

3000

4000

5000

6000

7000

Utility companies

Collectors

Total collected

Source of PET waste in Greentech’s collecting network in 2012

Primary selection 37%Commercial Source 20%Landfiels 15%Redemption 28%

Challenges in PET waste separate collection in Serbia (1)

• Insufficient collection infrustructure.• Scavinging on large scale (informal scrap collectors).• Non-existing insentives for the population to

participate in waste separate collection, only few municipalities with such policy implemented.

• Insufficient public awareness campaigns. • Missing inspection and control by authorities.

Challenges in PET waste separate collection in Serbia (2)

• Low national targets for collection and recycling of packaging waste.

• Non-existing State Environmental Fund (since 2013).• Low investments in major collection infrustructure

(sorting stations). • Low landfilling charges (15-25 Euro/Ton).• Utility companies usualy own/operate the landfield.• High political involvement in Public Utility companies,

from top management to strategies and operations .

THANK YOU FOR YOUR ATTENTION!

Mihail Mateski, MScMEGeneral ManagerGREENTECH D.O.O.Novi Sad, Serbia.mihail@greentech.rswww.greentech.rs