Weak pound ‘boosts recycling business in Europe’
The weak pound may be making life difficult for importers and tourists, but could provide a much-needed boost for UK plastics recyclers.
The sterling’s weakness is allowing UK businesses costing their services in pounds to be more competitive abroad, according to one UK company.
Manchester-based Axion Recycling said it has found that its business is now more price-competitive for customers elsewhere in Europe.
It has seen increased interest in the high-grade recycled plastics it makes from waste fridges, computer monitors and mixed WEEE plastic since the value of the UK currency began dropping against the euro.
“Because our cost base is in pounds, this makes us more competitive in the European export market and, as a result, we have seen more interest from foreign buyers,” Axion’s commercial director Roger Morton said.
“For example, a Polish injection-moulding customer said that we are now more price-competitive than before Christmas.
“Injection-moulding and sheet extrusion customers in Europe buying both recycled polystyrene and polypropylene have commented on how the falling pound is working in their favour.”
Mr Morton added that there was still a buoyant market for recycled plastics despite the recent drop in the cost of virgin plastics.
“We are continuing to get many inquiries from companies that are committed to going green by using recycled polymers, while at the same time aiming to reduce their costs in the current climate,” he said.
“Given heightened consumer interest in the use of recycled materials in new products, we are confident this market will weather these turbulent times – and with the added benefit of the current weak pound.”