Exporting and importing glass – What are the obstacles to packaging waste recycling development?

It is not a known fact that leaves, matches, ice for meat, potato, beans, onion and other is imported to our country. This list comprises recycling industry raw materials. Some will find the fact that we import old glass weird and others funny but that is the fact which worries Serbian glass recycling plant from Aleksinac. The only company in Serbia and region which deals with glass packaging waste, imports 1000-3000 waste glass for recycling annually.

Although it supplies raw materials for recycling from the region, the Serbian recycling plant is not fully exploited – it annually processes some 13000 tons in the section in Grejac. The final product is recycled glass, which leaves this section and goes to export of 10000 tons per year.

- The capacity of our factory is 30.000 tons and since we do not have sufficient raw materials we are forced to import waste packaging glass. Total glass quantities collected in a year range between 8.000 and 10.000 tons. The industry participates with some 60% in the structure, collectors with some 30% and public utility companies with 10% - Slavisa Ognjanovic, director of the Serbian recycling factory from Grejac, owned by Greek Youla Group.

(Slavisa Ognjanovic)

Our collocutor points out catering sector is very inetersted in glass packaging delivery and that local utility companies which do not have good organization are the biggest problem for obtaining larger quantities.

- Glass collectors are paid depending on cleanness of glass and there are no quantity limitations. We provide some incentives in order to stimulate increase in collection from utility sector- Ognjanovic mentions.

Violeta Belanovic-Kokir, director of Sekopak, an operator of packaging waste management, confirms that glass packaging waste is mostly generated from two channels - HoReCa and households.

- Every channel is specific for material quality and collection method. Collection costs per ton are very high and go to even EUR 50 euros per ton while purchase price hardly reaches EUR 10 per ton. This shows the major problem of collectors – with complicated collection logistics they do this job with a loss - Belanovic- Kokir says for eKapija.

Problem in glass export as well

The factory from Grejac warns that large waste glass quantities are exported, instead of being recycled.

- Companies which have a license for collection and transport and which apply for export of glass breakage export waste from Serbia.

Director of the Serbian glass recycling plant explains that this way the headcount number decreases in the process of recycling, collection and transport, discourage collection network from utility sector because incentives received from an operator do not go into collection infrastructure as well as that significant foreign exchange effect for land is lost because it is exported at damping prices.

Representatives of Sekopak say that a huge problem for glass recycling development is the fact that in Serbia there is no glass raw materials recycling which can make new ones out of waste bottles, which would, as they say, would be in best interested of both beverage industry and the state.

- The main question is how to recycle imported packaging in Serbia, i.e. how not to import glass packaging and export glass packaging waste. The answer is strategic partnership of the state, beverage industry and recycling industry, based on market and European standards – director of Sekopak says.

Since recyclers stand for defining minimal export price of glass breakage as a secondary raw material in order to protect domestic industry and decrease uncontrolled export of non-recycled glass, we asked the Ministry of Energy, development and environmental protection if the state is planning some changes on over-border waste flow.

However, the Ministry does not have specific answer.

- Waste for whose treatment or disposal in environmentally acceptable and efficient manner there are no technical options and facilities in the Republic of Serbia is exported. In the upcoming period, the Ministry will intensively work on supplements of the legislation in the waste management field which must be aligned with the regulations and guidelines of the World Trade Organization which proscribes terms for free turnover of goods and services – the Ministry replied.

What should be changed?

For all the entities it would be important to revive Serbian glass industry which could improve through section modernization.

(Violeta Belanovic-Kokir)

Director of Sekopak says that the state should recognize its interest which would definitely be well-prepared by the beverage industry which is activating Paracin-based Fabrika stakla.

- After a number of failed privatizations, this former industrial giant today cannot stand on their own feet . Essential investments in modernization of equipment and enabling Paracinka to produce glass raw materials in line with the European standards and industry requirements are definitely the most sustainable and all inclusive long term solution of this problem – the collocutor of eKapija explains.

The Serbian recycling factory say the state should regulate with the Law working conditions for an operator as well as minimal commitments of compensation payment to authorized collectors from operators.

The resource ministry is announcing changes and amendments of the existing legislation in waste management field.

- First of all, the Law on Waste management will be amended, we will pass on the revision of the Strategy on Waste management as well as all by-law documents generated from the mentioned law, by the end of 2013 and 2014. This would generate conditions to improve waste management system and special waste flows in Serbia and thus for waste glass management – the Ministry promises.

Apart from this regulation on licenses issuance, a new document on waste flow, more intensive role of inspection is planned through the system control in this industry.

Suzana Obradovic