Seasonally slower generation and growing demand contribute to sideways or rising plastic scrap prices.

Plastic scrap generation has slowed as is typical in the early part of each year, which is serving to increase or maintain pricing.

“Availability is tight and pricing for scrap is steady to increasing,” a Midwest-based reprocessor of rigid polyolefin scrap says.

A contact with a material recovery facility (MRF) based in the Midwest says, “Supplies are going through their normal winter slowdown. For example, we ship 400,000 pounds of PET (polyethylene terephthalate) in the summer months, and [in January] we will ship 290,000 pounds.”

He says postconsumer high-density polyethylene (HDPE) scrap generation also is lower in the fall, winter and spring compared with the summer months because children are back in school.

The reprocessor says, “Generation always falls off, some grades dramatically, in the winter months.”

Regarding domestic demand as of mid-January, the MRF operator says, “PET seems to be perky, and it normally isn’t until March before summer buying trends start to develop.”

He adds that the company’s normal PET buyer came up 2 cents per pound from its December 2021 price for material it purchased in January.

“We expect this market to take off this year,” he adds of PET.

While PET bale pricing increased in January, natural and mixed-color HDPE scrap maintained its pricing month over month. “This could change by March when processors are starting to build volumes for furniture and pipe manufacturing,” the MRF operator says.

He adds that more HDPE reprocessing capacity is coming online in North America this year, which should help to maintain or increase prices for HDPE bales.

Austria-based packaging producer Alpla Group is among the companies adding HDPE recycling capacity. In late 2021, the company opened its $22.9 million plant in Toluca, Mexico, which is designed to produce more than 16,000 tons annually of recycled-content HDPE (rHDPE) in pellet form. A planned expansion could increase that capacity to more than 33,000 tons annually starting in the second half of 2022.

The plant’s rHDPE will be used to produce nonfood packaging, such as for personal care and household cleaning products.

“The demand for recycling material is so high in Mexico and Central America that the majority of the output will be used regionally,” Alpla says in a news release about the plant’s opening.

While virgin HDPE and rHDPE prices have declined from highs seen in 2021, they remain high historically, the reprocessor and MRF operator say.

The reprocessor adds, “Virgin pricing is still high, so wide-spec is not an attractive option for a lot of customers who are using regrind and repro.”

The MRF operator says he expected natural HDPE bale pricing to fall more than it did late in 2021. “Even at their low price point over the last 12 months, we are still above their highest value preceding 2021.”

Low-density polyethylene (LDPE) film scrap also is in strong demand, the MRF operator says. “Sustainability is driving this.”

Even MRF film is of interest, he adds. “You couldn’t give this away two years ago, but now it has decent demand with generous pricing. Beyond sustainability, processors have learned how to clean this material, making for better yields.”

Sunil Bagaria, president of GDB International, New Brunswick, New Jersey, is expanding his company’s film recycling capacity with the addition of three lines later this year. The company went from solely brokering this material to also reprocessing it in 2018. Bagaria says he expects to be able to produce 80 million tons of LDPE and linear-LDPE postconsumer resin (PCR) as of the first quarter of 2023.

“There is growing demand for PCR” because of voluntary commitments and legislative mandates, he says, such as the one recently signed into law in New Jersey.

New Jersey Gov. Phil Murphy signed S2515/A4676 into law in mid-January, establishing PCR requirements for rigid plastic containers, glass containers, paper and plastic carryout bags and plastic trash bags. Beginning five years after the effective date and every three years thereafter, the percentage of PCR required for rigid plastic containers will increase by 5 percent, until reaching 50 percent. Plastic carryout bags will be required to contain at least 20 percent PCR beginning two years after the bill’s effective date and 40 percent PCR after five years. Beginning two years after the bill’s effective date, all plastic trash bags must contain at least 10 percent PCR, increasing to 20 percent in five years.  

When GDB began producing PCR, Bagaria said the biggest issue would be limited demand for recycled plastics. Now he says securing sufficient supply to feed his lines will be his foremost concern.

David Hudson, founder of Houston-based Circulus, a new reprocessor of LDPE and LLDPE film with a plant in Riverbank, California, that can produce more than 40 million pounds of PCR annually, says scrap is generally available as of early 2021.

“For the most part, pricing is up year over year,” he says. “When prices rise, volumes typically are a little healthier because more people are collecting.”

He adds that demand for the company’s PCR is good. “We produce a higher quality resin than most,” Hudson says, adding that much of the company’s PCR is being used in packaging.

Circulus has two additional plants under construction in Oklahoma and Alabama that Hudson says will be operational this year.

South Carolina-based Atlas demonstrates mobile composting unit in Connecticut.

Spartanburg, South Carolina-based Atlas Organics held an event in West Haven, Connecticut, in mid-January to demonstrate its EASP Modular Unit. Atlas describes the system as “a fully remote, off-grid solution to diverting organic waste and creating quality compost.”

The EASP Modular Unit powers all blowers as well as monitoring and control systems needed to run an extended aerated static pile (ASP), says the company.

“Our hope for this project is that it demonstrates to the people of West Haven and other municipalities, that when you are faced with solid waste management decisions, there are things you can do,” says Doug Colter with the city of West Haven. “This ASP project will show that we can incorporate more and more organics from our waste stream into a usable product,” he adds.

Colter, the city’s project manager, is overseeing a food waste diversion and compost pilot project funded in part by a grant from the U.S. Agriculture Department’s Natural Resources Conservation Service Urban Farming program.

He says the composting project is permitted by the department as a pilot and is a public-private partnership with Atlas.

“Modular Units like these can finally provide a much-needed solution for municipalities with limited space,” says Atlas Organics CEO Joseph McMillin. “The Modular Unit allows for a large amount of material to be processed in a small space with limited infrastructure.”

According to Atlas, which recently was acquired by San Francisco-based Generate Capital, the Modular Unit is made using a 20-foot shipping container that is outfitted with a newly developed control system that allows operators, managers and engineers to see and communicate with the unit remotely.

The unit comes equipped with temperature probes, a solar photovoltaic (PV) system, a three-blower EASP system with piping, an operations manual and Solvita maturity kits used in soil testing.

PepsiCo Beverages North American invested $35 million in the fund, which will finance small-scale, modular MRFs in underserved communities.

Closed Loop Partners has created the Closed Loop Local Recycling Fund with an initial investment of $35 million from PepsiCo Beverages North America, Purchase, New York. The fund will establish small, modular recycling systems in communities across the U.S., reducing the need for the costly transportation of recycled materials to larger material recovery facilities (MRFs), increasing recycling in areas with no or limited access to these services. The material processed at these sites will be used to support PepsiCo’s sustainable packaging goals, the companies say. 

“This first-of-a-kind investment from PepsiCo ushers in a new future for local recycling, empowering communities across rural America and small cities to reduce waste and harness the value of their recycled commodities,” says Ron Gonen, founder and CEO of Closed Loop Partners, which is based in New York City. “By closing the loop on these commodities, which can then re-enter local manufacturing supply chains, we are better equipping communities with the tools needed for resilience against a globally changing climate, while also creating new revenue opportunities and jobs. We look forward to continuing our long-standing partnership with PepsiCo to build and strengthen circular supply chains.”

“As companies—including PepsiCo—set ambitious goals to use more recycled content in their packaging, there is more need than ever for partnerships and investments to increase recycling in the U.S.,” Jason Blake, chief sustainability officer and senior vice president at PepsiCo Beverages North America, says. “We need to develop the infrastructure that makes recycling available to more Americans so we can recover the high-quality material that can be used in our packaging. Through pep+, our end-to-end strategic transformation, sustainability is at the heart of everything we do. As the exclusive investor in the Closed Loop Local Recycling Fund, we are actively driving the changes needed to transform the US recycling system and move towards a circular economy.”

The smaller, local MRFs lay the groundwork for the future of recycling, the companies say. Each individual system creates the capacity to recycle at least 8,000 tons per year of materials, including keeping 400 tons of polyethylene terephthalate (PET) in circulation annually. The companies also expect these MRFs to yield higher quality plastic while also reducing the costs and greenhouse gas emissions associated with transporting materials longer distances.

How companies and communities can take better care of waste and recycling truck drivers.

It is increasingly difficult to hire drivers, and that includes waste and recycling collection drivers.

There is high demand for commercial driver’s license (CDL) drivers, and many companies do everything they can to get drivers in the door. But these companies could be doing more for their CDL drivers. The best companies, those with low turnover, value their drivers and know how to care for them from the start of the job application process all the way to retirement.

Finding great, qualified CDL drivers happens to be Inflection Poynt's recruiting specialty. It’s more important than ever to recognize value, and companies should take note of a few important tips that will help engage driver candidates, retain their drivers and show them the appreciation they duly deserve. We’ve seen it all over the last few years and can provide several tips.

A new driver going through the hiring and onboarding process gets a firsthand look at how a company really operates. A streamlined hiring process that is easy to navigate will keep the driver engaged and moving forward. When candidates don’t know the next step in the hiring process and are not getting answers from the hiring department, they get frustrated and move on.

It’s important to value the individual from day one as well as welcome them with open arms when they come in for an interview. Approaching a driver with this attitude will help the prospective candidate realize that you know that your business and surrounding community could not function without him or her.

Also ensure the interview location is easy to find. Provide detailed instructions about where to go and who to ask for. After the interview, be clear about the next steps. If it’s not a good fit, then be upfront with the driver. No one likes to be ghosted or led on.

The same principles apply to the onboarding process. Today, processing paperwork for background and drug tests seems to take longer than ever, but that doesn’t mean you leave your new hires in the dark about the process. Switching jobs is stressful and waiting for paperwork to finalize is tough for people who enjoy a physically demanding job. So, update your drivers on where things stand with their paperwork.

Finally, once drivers are hired, value your new employees by overcommunicating with them. Build trust with your drivers by connecting with them frequently as they are learning the job.

Compensation tells a driver a lot about how the company values its workers. Is what you plan to offer competitive with what other local companies pay? Also, have you increased current employees’ pay to meet what you offer to your new hires?

Keep in mind—employees talk. The quickest way to devalue a current employee is to offer a new hire more pay. The same goes for a sign-on bonus. Sign-on bonuses attract attention, but at what cost? Your current employees need to be compensated as well, or you may end up needing to fill more jobs.

If companies were to stop offering sign-on bonuses and instead focus on investing in current employees, turnover rates would decrease.

Overall, consider evaluating driver compensation against the current market every six months, even if it doesn’t increase each time, to ensure you offer competitive pay to your drivers.

Employees want to be proud of who they work for and feel valued, and in turn, they will value the company. So, put money back into your employees by providing ongoing training as well as programs such as tuition reimbursement. Growing employee skills always improves a company.

Additionally, try to promote from within rather than looking to a new hire. This will help your employees to grow in their profession. This benefits both employees and the company.

Health and dental insurance, of course, are good to offer as benefits. But there are some other benefits that could help to set your company apart.

Consider offering a yearly boot credit or provide incentives such as bonuses for a good performance review.

Find alternative ways to thank your drivers. Acknowledgements of gratitude keep your employees feeling valued and will, in turn, keep them with you longer term.

In addition, offering a retirement plan means an employee will be in there for the long haul. Employee turnover is common, but there are ways to help you improve your retention rate. Use the Ultimate Guide to Driver Retention-Ideas and Programs from Inflection Poynt for more ideas.

Finally, waste and recycling drivers are important. We need to treat them like they are important and valuable. You keep employees by knowing employees. Know what they truly care about. You can offer all the incentives in the world, but if drivers feel like they don’t matter, they are more likely to find another company. Listen to what your drivers have to say and welcome feedback. Create an environment where employees feel comfortable with expressing concerns and offering suggestions.

Mark Mutton is a U.S. Air Force veteran, founder and CEO of Inflection Poynt recruiting. He founded Inflection Poynt in 2018 with a goal to innovate the recruiting industry through smart sourcing technology. Inflection Poynt’s smart recruiting engine presents job opportunities to qualified candidates from diverse backgrounds, cultures and ethnicities through data science strategies and marketing platforms.

Tire processor to sell BolderOil made from scrap tires to Tauber Oil Co.

Colorado-based Bolder Industries, Inc. says it has signed a 20-year marketing agreement with Tauber Oil Co. “for exclusive offtake of BolderOil,” a scrap tire-derived petrochemical product.

Under the agreement, independent wholesale petroleum and petrochemical product marketer Tauber will have exclusive access to what Bolder calls “the largest allocation and supply of tire-derived, sustainable oil known in the industry, by way of a proven industry pioneer.”

Houston-based Tauber Oil will be the exclusive purchaser of BolderOil for 20 years, acquiring approximately 2 million barrels annually as supply becomes available and Bolder adds capacity. Tauber will “manage all administrative and sales services including logistics, consulting, billing and fulfillment between Bolder Industries and its global customers,” according to a Bolder news release. “In turn, Tauber will consult with Bolder on the design and engineering of any storage offtake and infrastructure at its current facility and future planned facilities,” adds the company.

BolderOil has applications in renewable fuels, as a replacement oil in ASTM-grade carbon blacks, oil and gas well cleanup and chemical solvents. “As a sustainably derived product, BolderOil increases environmental savings for end customers and, because it is decoupled from oil indices, can also improve pricing stability,” states the 10-year-old Colorado company.

“For years, we’ve closely monitored the race to turn tires into high-quality petrochemicals but, until we met the Bolder Industries team, we had yet to see it accomplished successfully at commercial scale,” comments Jonathan Tauber, president of Tauber Oil.

“After visiting their facility, it was immediately apparent they were doing something special,” adds Tauber. “Now, through arduous due diligence, we are confident and eager to provide sustainably derived petrochemicals at the level of quality, consistency and specifications our customers demand. We expect this partnership will give way to expansion and deliver meaningful environmental impact that our customers and the world needs."

States Bolder Industries CEO Tony Wibbeler, “Strategic investments and alliances such as this signal the next phase for our hyper-growth company. This relationship enables us to grow our petrochemical business exponentially with a well-known and highly respected partner that we are very pleased to be working with day to day.”

Bolder says the partnership allows Tauber Oil to better serve its largest global customers by ensuring their ability to meet all regulatory guidelines while providing access to renewable petrochemicals on a consistent basis.

Tauber contributed to part of the 2021 $80 million investment in Bolder Industries, which assisted in the expansion of its current facility in Maryville, Missouri, and acquisition of a Terre Haute, Indiana, facility as well as a newly announced European expansion in the Port of Antwerp, Belgium.

Additional facilities, both domestically and overseas, are planned in 2023 and beyond to meet rising demand from automotive, plastics, rubber and sustainable petrochemicals manufacturers looking to meet their environmental, social, and corporate governance (ESG) goals, says Bolder.

In Bolder’s recovery process, 98 percent of each tire is repurposed, reducing greenhouse gas emissions, water, and power usage by 85 percent compared to traditional manufacturing processes, says the firm.

“To be able to take something as notoriously synonymous with pollution as an old tire and repurpose it into literally hundreds of different useful products is an incredible achievement by Bolder Industries,” says David Tauber Sr., board chair of Tauber Oil. “We at Tauber Oil are delighted to have a hand in bringing to market products from our industry that not only reduce production emissions and natural resource use but keep millions of tires out of landfills every year.”