In this interview with Sustainable Plastics, Manfred Hackl, CEO at Erema Group, discusses the consolidation in the plastics recycling industry as well as the firm’s sales outlook and R&D innovations ahead of K 2025.
Q:What is Erema’s reaction to market consolidation in the plastics recycling industry?
Hackl: Market consolidation in the plastics recycling sector is a natural response to the increasing complexity of efficiency and quality requirements. Erema addresses this through strategic partnerships, such as the joint venture with the Lindner Group. This partnership enables us to better align extruders and washing systems, further increasing the value we provide to our customers, for example through optimized energy management, overall process optimization, etc. Through these and other initiatives, we are solidifying our market position and ensuring that we not only respond to current market changes but actively shape the future of the plastics recycling industry. We remain optimistic and are committed to sustainable growth, offering both technological progress and efficiency improvements for our customers.
Q: Erema saw modest growth in the 2023/2024 financial year. How have sales developed since?
Hackl: The ongoing global economic challenges have certainly impacted the market, and as a result, we are anticipating a projected revenue decline by just under 10 percent for the current fiscal year 2024-2025. Looking ahead, our outlook for the next fiscal year is one of cautious optimism, where we expect a stabilization in our revenue performance, with no significant growth. We believe we have reached the lowest point and will see a period of consolidation moving forward. Additionally, the K 2025 is approaching, and we view it as an opportunity for the industry. There is also growing global recognition, particularly from political bodies, that increased support and impact are necessary for the industry’s development. With this in mind, we are focused on securing incoming orders in the coming months, and each quarter will be crucial as we navigate through these challenging times.
Q: What R&D innovations does Erema have in store?
Hackl: At Erema, we are continuously refining our digital technologies, particularly through our online platform BluPort. This platform integrates various digital tools designed to enhance the efficiency and predictability of recycling operations. For example, our app PredictOn, which collects real-time data to predict maintenance needs, helps our customers maximize productivity and reduce downtime. Our latest machine technology, the INTAREMA TVEplus DuaFil Compact, has been well-received by the market and is the industry benchmark for recycling challenging materials with high levels of contamination and moisture. It is an energy-saving recycling system featuring safe and particularly high-performance degassing and filtration. We are also preparing for K 2025 of course, with exciting innovations in the pipeline that will continue to drive our leadership in the recycling industry.
Q: What is your outlook for the future of the plastics recycling industry in the next couple of years?
Hackl: The plastics recycling market has great potential due to evolving regulatory requirements and the conservation of resources, which is being driven by both governments and well-known brands. The current low recycling rate of only 8% of plastics worldwide illustrates the enormous growth potential. We remain firmly convinced that the circular economy for plastics will be a reality by 2030. The journey toward this goal will be driven by continuous advancements in recycling technologies to further enhance the efficiency and quality of recycled materials. Erema will continue to lead these developments, with innovative solutions that meet the demands of the market while also contributing to a reduction in CO2 emissions. However, we must remain vigilant and proactive: innovation alone will not be enough - cooperation along the value chain and appropriate framework conditions are crucial for long-term success in a global market.
Q: If you had to pick one sustainability trend that will drop off the agenda by 2030, what would it be?
Hackl: One sustainability trend that I believe might drop off the agenda by 2030 is the push to reduce or ban plastic in packaging - a concept that has often been positioned as a sustainability measure. In recent years, this approach was primarily driven by environmental concerns, aiming to minimize plastic usage. However, we are beginning to see a shift in public perception, where more and more brands are recognizing the inherent advantages of plastic packaging, such as its light weight and recyclability. Consumers shouldn’t need to worry about whether a packaging is sustainable or not. All packaging, be it plastic, paper, glass, or other materials, should be part of a closed-loop recycling system. By 2030, I believe plastic will be seen more as a valuable material for sustainable packaging solutions, fully in line with the potential of advanced plastic recycling.