Fromto, a Belgian plastics recycler, is set to close its factory in Houthalen. The site saw residual plastics processed into new products, but the facility has been posting heavy losses for multiple years. The closure will affect thirty employees, with the company citing persistent price pressure on the European plastics recycling market, particularly from low-cost virgin material made from fossil feedstocks and cheaper recycled material imports from China as the main reasons.
Fromto
Fromto closes its Houthalen facility
According to Fromto, the European plastics recycling industry is facing significant economic pressure, with new capacities of virgin plastics production being built in the United States and the Middle East, leading to increased competition. Additionally, the company notes that imports of recyclates from China are estimated to be up to EUR 200 per tonne cheaper than comparable European materials, as another challenge.
EU regulations have also presented their own challenges, as it sets recycling targets and aim for plastics recycling to take place within Europe. However, Fromto believes that the existing rules are not sufficient to strengthen the use of recyclates quickly and across the board. Current plans will see a mandatory minimum recycled content for all single-use plastic packaging; however, they will not apply until 2030.
“We regret the discontinuation, but unfortunately, we see no other option. The entire plastic recycling sector in Europe is under heavy pressure due to cheap virgin plastics and imports from China,” said Philip Peeters, Managing Director of FROMTO. “The international situation is therefore forcing us to change tack.”
The closure will not initially affect the second site in Beringen. The facility will continue processing plastic films from the blue PMD collection bag. Fromto is seeking an industrial partner for this site, who can contribute additional expertise to improve the quality of the recycled materials and further optimise operations.
