Pros and cons
of a global value chain
We are currently utilising raw materials and recycling capacities available worldwide - for example in Bangladesh and India, but also in Europe. The reason for this is that Europe does not currently have a fully circular value chain. Some individual recycling solutions exist, but the infrastructure is not sufficient to efficiently map all processes - from collection to recycling to production. Such a set-up is a long-term process and will not be fully realisable until 2030 at the earliest.
Pros and cons
of a global value chain
We are currently utilising raw materials and recycling capacities available worldwide - for example in Bangladesh and India, but also in Europe. The reason for this is that Europe does not currently have a fully circular value chain. Some individual recycling solutions exist, but the infrastructure is not sufficient to efficiently map all processes - from collection to recycling to production. Such a set-up is a long-term process and will not be fully realisable until 2030 at the earliest.
Arguments in favour of using offcuts
Sustainability aspect
By recycling leftover goods, waste is avoided and resources are utilised efficiently. By recycling existing materials and reintegrating them into the market, the ecological footprint is reduced.
Availability and logistics
There are already large stocks of leftover goods that are directly available. Utilising these stocks is efficient and cost-effective, as less energy and material is required for the production of new raw materials.
Lack of infrastructure in Europe
There is currently no fully developed recycling infrastructure in Germany or Europe that can cover all steps of a circular value chain. Such a development is a long-term process that is currently only in the initial stages in Europe. Some individual solutions already exist, but a fully-fledged circular value chain cannot yet be realised here.
Global value chain
Utilising international recycling capacities creates an efficient and competitive value chain. Countries such as Bangladesh and India already have advanced systems and production facilities that make it possible to provide high-quality products for the global market.
Flexibility and market potential
As the demand for recycled products is growing on the European market, utilising leftover goods as a source of raw materials for the production of finished products can be an attractive way to serve the market quickly and flexibly.
Cost savings and competitiveness
The production of recycled products outside Europe can be economically advantageous, as production costs are lower in countries such as India and Bangladesh. This enables competitive pricing on the European market.
Long-term goal - value creation in Europe
As a company, we are very keen to map the entire value chain in Europe in the long term. However, due to current capacity bottlenecks and price constraints, this is not yet fully realisable. For many companies and authorities, price remains a decisive factor that must be taken into account when choosing production and recycling locations.
Arguments against the use of leftover goods and against transport abroad
Transport emissions
Transporting leftover goods abroad or within Germany and then importing recycled products increases the carbon footprint. This could be seen as a contradiction to the sustainable approach.
Dependence on third countries
Utilising international recycling capacities creates a dependency on foreign markets and manufacturers. This could lead to problems in the event of future political or economic uncertainties.
Loss of jobs in Europe
Outsourcing some elements of the value chain could lead to job losses in the recycling and waste management industry in Germany and Europe.
Lack of transparency and control
The relocation of recycling and production processes abroad can lead to challenges in terms of transparency and quality control. Environmental and labour standards vary greatly internationally, which can lead to ethical and legal risks.
Delay in the expansion of recycling infrastructure in Europe
If the demand for recycling is met abroad, this could hinder the expansion of corresponding plants and technologies in Germany and Europe.
Competitive disadvantages due to regulations
Strict environmental and recycling regulations within the EU could penalise companies that outsource such processes. This could lead to additional costs, especially if the EU directives become even stricter.
Conclusion
In the short term, the lack of recycling capacities in Europe and economic considerations are the decisive factors as to why recycling and production are taking place abroad. In the long term, however, we are endeavouring to map the entire value chain in Europe as soon as the corresponding capacities are available and the economic viability is given. However, the transition to a fully recyclable value chain in Europe is a lengthy process and cannot yet be properly realised. Although selective solutions such as fibre-to-fibre recycling are already possible, complete integration into a comprehensive, closed economic system is not yet feasible.
However, we are also in a position to integrate this business model in Europe with correspondingly greater effort. Until then, the international utilisation of the recycling and production infrastructure remains a pragmatic interim solution to meet demand and pursue sustainable goals at the same time.
However, we are also in a position to integrate this business model in Europe with correspondingly greater effort. Until then, the international utilisation of the recycling and production infrastructure remains a pragmatic interim solution to meet demand and pursue sustainable goals at the same time.
