Textile Recyclers Fighting for Survival in Face of Crime & Prices

High market prices, unfair competition and criminal activity are squeezing margins driving textile recyclers out of business in many parts of the world. Speaking at the recent BIR (Bureau of International Recycling) World Recycling Convention & Exhibition in Shanghai, Alan Wheeler of the UK’s Textile Recycling Association revealed that more than 10% of his organisation’s membership had ceased trading in the last year or so. According to Wheeler the main reason behind the failures was because some textiles collectors “could not afford to continue paying the prevailing market prices” for originals (unsorted collections). “I suspect that there are more to come,” he added. Wheeler, who was introduced as the BIR Textiles Division’s new general delegate at the meeting, also noted that used textiles were now “routinely targeted by criminal gangs”. And it is not just in the UK where the impact of criminal activity is being felt by textile recyclers. According to Mehdi Zerroug, vice president of Framimex, in France too, collection containers continue to “disappear overnight”, with some thefts even taking place even during the collection process. Zerroug reported that the productivity of collection containers in France had dropped 15% between 2011 and 2012. For Germany, re-elected BIR Textiles Division president, Olaf Rintsch of Textil Recycling K&A Wenkhaus warned that difficult market conditions and unfair competition were adversely impacting the traditional used textiles industry. Rintsch cautioned that prices of originals had reached “a zenith” and sorters were finding it “almost impossible” to make profits. “We have been here through the good and the bad days, so we ought to be given the space to survive rather than allow the destruction of a branch that has been around for 200 years,” he said. If the industry’s survival continued to be threatened by its inability to obtain originals at reasonable prices, then a “huge” number of jobs would be lost and “taxpayers will have to pay”, warned Rintsch. Beyond Europe, the Textiles Division’s honorary president Klaus Löwer of Germany based Hans Löwer Recycling spoke of margins being subject to “major pressure” in North America, with some business closures anticipated in Canada. In Japan, Löwer explained that prices for collected textiles had increased by 100% while volumes had declined by 20%. A perspective on the market in China was provided by guest speaker Lin Shidong, secretary general of the China Chain Store and Franchise Association (CCFA) Recycled Fibre Commission. According to Shidong, in China more used clothes are being discarded in line with the general improvement in living standards. However, he also noted that a significant volume are being collected and channelled into a variety of applications, such as anti-vibration materials, education and strong policy leadership were required to achieve a potential reuse level of close to 60%. Shidong added that there was also a need to upgrade technologies to boost recycling. The speaker confirmed that China exports some sorted used clothing but that the majority of the collected material is reused domestically. Read More Recycled Plastics Market Set to Triple, but China’s 'Green Fence' Hampering Exports The global demand for recovered plastics will triple over the next eight years, but China’s ‘Green Fence’ policy of import restrictions of scrap plastics is leading to oversupply in the U.S. market. Crime and Government Meddling with Markets Hampering Metal Recyclers The “natural” flow of metals around the world is being hindered by government “meddling” in the form of bans and other restrictions on non-ferrous scrap exports, according to Robert Stein. New Mexico Landfill to be Excavated in Hunt for Legendary Atari Merchandise A treasure hunt at a New Mexico landfill is hoping to uncover several truckloads of early 80s Atari merchandise, including the video game of Steven Spielberg’s 1982 smash hit movie E.T. – dubbed the “worst video game of all time”.