Page 25 - ARUBA TODAY

BUSINESS Monday 20 May 2019
A25

China's ban on scrap imports a boon to U.S. recycling plants

By MARY ESCH per from wood fiber, the "The export of plastic scrap
Associated Press mills will add production played a big role in fa-
ALBANY, N.Y. (AP) — The lines turning more than a cilitating recycling in our
halt on China's imports million tons of scrap into country," Bagaria said. "The
of wastepaper and plas- pulp to make boxes, said downside is that infrastruc-
tic that has disrupted U.S. Brian Boland, vice presi- ture to do our own domes-
recycling programs has dent of government affairs tic recycling didn't devel-
also spurred investment in and corporate initiatives for op."
American plants that pro- ND Paper, Nine Dragons' Now that is changing,
cess recyclables. U.S. affiliate. though he said far more
U.S. paper mills are expand- "The paper industry has domestic processing ca-
ing capacity to take ad- been in contraction since pacity will be needed as a
vantage of a glut of cheap the early 2000s," Boland growing number of coun-
scrap. Some facilities that said. "To see this kind of tries restrict scrap imports.
previously exported plastic change is frankly amazing. "Ultimately, sooner or later, In this May 7, 2019 photo, plastic pill bottles are bundled for re-
or metal to China have re- Even though it's a Chinese- the society that produces cycling at a GDB International warehouse in Monmouth Junc-
tooled so they can process owned company, it's creat- plastic scrap will become tion, N.J. According to GDB International president Sunil Bagar-
ia, the domestic processing capacity of recyclable materials
it themselves. ing U.S. jobs and revitalizing responsible for recycling it," will need to increase as a growing number of countries restrict
And in a twist, the investors communities like Old Town, he said. scrap imports.
include Chinese compa- Maine, where the old mill It has also yet to be seen Associated Press
nies that are still interested was shuttered." whether the new plants
in having access to waste- The Northeast Recycling coming on line can quickly we're stuck in this rut," said tually found buyers in India,
paper or flattened bottles Council said in a report last fix the problems for mu- Ben Harvey, whose com- Korea and Indonesia.
as raw material for manu- fall that 17 North American nicipal recycling programs pany in Westborough, Mas- Keith Ristau, CEO of Far
facturing. paper mills had announced that relied heavily on sales sachusetts, collects trash West Recycling in Portland,
"It's a very good moment increased capacity to han- to China to get rid of piles and recyclables for about Oregon, said most of the
for recycling in the United dle recyclable paper since of scrap. 30 communities. recyclable plastic his com-
States," said Neil Seldman, the Chinese cutoff. "Chinese companies are He had a parking lot filled pany collects used to go
co-founder of the Institute Another Chinese compa- investing in mills, but until with stockpiled paper to China. Now most goes
for Local Self-Reliance, a ny, Global Win Wickliffe, we see what the demand a year ago after China to processors in Canada or
Washington-based organi- is reopening a shuttered is going to be at those mills, closed its doors, but even- California.q
zation that helps cities im- paper mill in Kentucky.
prove recycling programs. Georgia-based Pratt Indus-
China, which had long tries is constructing a mill
been the world's largest in Wapakoneta, Ohio that
destination for paper, plas- will turn 425,000 tons of re-
tic and other recyclables, cycled paper per year into
phased in import restric- shipping boxes.
tions in January 2018. Plastics also has a lot of ca-
Global scrap prices plum- pacity coming online, de
meted, prompting waste- Thomas said, noting new or
hauling companies to pass expanded plants in Texas,
the cost of sorting and bal- Pennsylvania, California
ing recyclables on to mu- and North Carolina that
nicipalities. With no market turn recycled plastic bot-
for the wastepaper and tles into new bottles.
plastic in their blue bins, Chinese companies are in-
some communities scaled vesting in plastic and scrap
back or suspended curb- metal recycling plants
side recycling programs. in Georgia, Indiana and
New domestic markets of- North Carolina to make
fer a glimmer of hope. feedstocks for manufactur-
About $1 billion in invest- ers in China, he said.
ment in U.S. paper pro- In New Brunswick, New
cessing plants has been Jersey, the recycling com-
announced in the past pany GDB International ex-
six months, according to ported bales of scrap plas-
Dylan de Thomas, a vice tic film such as pallet wrap
president at The Recycling and grocery bags for years.
Partnership, a nonprofit or- But when China started re-
ganization that tracks and stricting imports, company
works with the industry. president Sunil Bagaria in-
Hong Kong-based Nine stalled new machinery to
Dragons, one of the world's process it into pellets he
largest producers of card- sells profitably to manufac-
board boxes, has invested turers of garbage bags and
$500 million over the past plastic pipe.
year to buy and expand or He said the imports cutoff
restart production at paper that China calls "National
mills in Maine, Wisconsin Sword" was a much-need-
and West Virginia. ed wake-up call to his in-
In addition to making pa- dustry.