The draft Plastic Waste Management (Amendment) Rules 2021, which the Union environment ministry announced on March 11, has proposed a blanket ban on a list of plastic items, among other changes.
The draft notification is in keeping with India’s announcement at the UN Environment Assembly in 2019, where it piloted a resolution for a global phase-out of single-use plastics by 2025. While the resolution failed to muster enough support, especially in the face of tough opposition from the US, India made a political decision to move ahead with the implementation.
Bans have been an integral part of the Indian policymaking landscape. The Sikkim government passed the country’s first plastic-bag ban in 1998. Plastic bags have since been the poster-children of governments keen to showcase proactive environmental action. In the last decade, 22 states and union territories have imposed complete or partial bans on plastic carry bags.
India’s ban culture can’t be seen in isolation, and warrants scrutiny from a historical perspective.
Addendum: What’s new in the Plastic Waste Management (Amendment) Rules 2021?
The applicability of rules has been extended to brand-owners and plastic waste processors (including recyclers, co-processors, etc.). In addition, new definitions for the terms ‘non-woven plastic bag’, ‘plastic waste processing’, ‘single use plastic’, ‘thermoset’ and ‘thermoplastic’ have been introduced.
The amendment also proposes a ban on the following items:
* Manufacturing of carry bags below 120 µm thickness (effective from September 30, 2021)
* Manufacture, import, stocking, distribution, sale and use of earbuds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, polystyrene (Thermocol) for decoration (effective from January 1, 2022)
* The manufacture, import, stocking, distribution, sale and use of single-use plastic (including polystyrene and expanded polystyrene) items: plates, cups, glasses, cutlery such as forks, spoons, knives, straw, trays, wrapping/packing films around sweet boxes; invitation cards; and cigarette packets, plastic/PVC banners less than 100 µm thick, and stirrers (effective from July 1, 2022).
Unilever has worked with Chinese ecommerce giant Alibaba to create a system of recycling machines which use artificial intelligence to automatically identify and sort plastic packaging.
The initiative, Waste Free World, is the first of its type and could accelerate the process of returning high grade plastic back into a closed-loop recycling system.
There are currently 20 of the recycling machines installed in offices and community spaces in Shanghai and Hangzhou.
During the course of 2021, 500 of the deposit machines will be put into market, mainly in the Shanghai and Hangzhou area, collecting up to 500 tonnes of plastic.
The project will also contribute to changing consumer behaviour through the incentive of Unilever coupons and AliPay rewards.
The system works by:
Customers scan the QR code on the bottle they want to recycle before placing it into the machine.
The AI technology identifies the type of plastic and sorts it accordingly.
The bottle’s recycled plastic granules will then be applied to the packaging of future Unilever products, before going back on shelf.
Rohit Jawa, executive vice president of North Asia, Unilever, said plastic has its place, but should not cause environmental pollution.
“By 2025, we will make an absolute reduction of 100,000 tons in plastic use and promote the use of recyclable plastic, so that we can halve the amount of virgin plastic we use in packaging and help collect and process more plastic packaging than we sell. We believe WASTE FREE WORLD jointly launched with Alibaba Group will become the ‘green engine’ of the circular economy for plastic packaging in China.”
Claims about biodegradability and compostability are widely used to label products and packaging regarding their endof-life. Biodegradation can take place in different systems (industrial or home composting) and environments (soil, water).
What is biodegradability?
Biodegradability is the potential of a material to follow the process of biodegradation. Biodegradation is a biochemical process during which microorganisms that are present in the environment convert biodegradable materials into carbon dioxide, water, and new biomass. Whether or not a material is biodegradable, depends on the chemical structure of the molecule and not on the origin of the raw material.
The process of biodegradation is influenced significantly by the surrounding environmental conditions. Temperature, water content, nutrient availability, pH-value, supply of oxygen, concentration and activity of microorganisms etc. all affect the rate of biodegradation. Under similar environmental conditions, the rate of biodegradation can vary for different products or materials. Thus, for example, fruit pulp will biodegrade faster than fruit peelings or wood.
Claiming biodegradability
In general, the sole claim “biodegradable” on products and packaging, without indicating specific standards or environments in which the biodegradation takes place, is misleading and therefore should not be used. Biodegradability claims must be transparent and verifiable and supported by standards that define the scope, i.e. the reference framework, the testing methodologies and criteria to be used, as well as the relevant environment.
Industrial and home composting
When claiming compostability, a term which describes biodegradability under composting conditions, clear reference should be made as to whether the statement refers to industrial or home composting conditions. The isolated claim that a product is “compostable” is misleading and should not be used.
Industrially compostable
Industrial composting takes place in dedicated large-scale municipal or commercial composting facilities under controlled conditions specifying e.g. temperature, humidity, residence time, composition, and air oxygen supply. These parameters are constantly monitored and steered. In Europe, the standard EN 13432[1] provides requirements that need to be met to test and certify packaging as industrially compostable. It is the basis for certification programs developed by EUBP, DIN CERTCO, and TÜV Austria. In other regions, similar standards and certification schemes verifying industrial compostability are in place.[2]
The following labels prove biodegradability under industrial composting conditions:
When claiming industrial compostability, products should ideally be certified according to EN 13432 and the according certification schemes. In this way, it is ensured that the material has been tested for its composition, disintegration biodegradability under industrial composting conditions, to guarantee that the resulting compost is of good quality and that the products do not have a negative impact on the environment.
A claim of “industrial compostability” should be made only if the product helps to divert organic waste from landfill or incineration to composting facilities or if it prevents the formation of persistent microplastics from conventional plastic products commonly incorrectly disposed of in the organic waste stream. Products and packaging for which collection and treatment in an industrial composting facility is highly unlikely should not be labelled as “industrially compostable”. Local regulations on the treatment of industrially compostable products should be considered when communicating this end-of-life option. This could be done by a suggestion on the product to check with the local waste management authority.
Biodegradable in home composting piles/home compostable
A material is home compostable when it biodegrades under the conditions prevailing in home composting. When referring to “home”, “backyard”, or “garden” composting, an aerobic breakdown of organic material at ambient temperature is meant, usually in small-scale composters or by “slow-stack” treatment methods. However, compared to industrial composting, a precise control of temperature, moisture level, oxygen supply, and residence time is difficult to achieve. There is no final quality control of the compost. Home composting must be operated according to good home composting practice, as there are no standardized or completely controlled conditions. It is influenced by multiple factors such as weather conditions and composting practice. It is also a much slower process than industrial composting, involving a comparatively smaller volume of waste, and it is not suitable for treating large quantities throughout the year.
While there already exists a French norm for home compostability, a European norm for home compostable carrier bags is currently under development. This prEN 17427 sets the maximum duration to reach 90% disintegration at 26 weeks, compared to 12 weeks for the industrial composting standard (EN 13432), and includes a guidance on best practice of home composting. As with EN 13432, certification schemes for home compostability ensure a control of biodegradability, environmentally safe chemical composition, and disintegration.
Today, the following labels prove biodegradability under home composting conditions:
Biodegradability in other environments
Careful precision is essential in communicating bio- degradability in soil or water environments. In no way should there be any risk of the misperception that, based on such a claim, the product or material could be littered to the sea or on land.
Biodegradable in soil for agricultural applications
The European norm EN 1703313 sets the requirements for soil-biodegradable mulch films, manufactured from thermoplastic materials. Respective certification is offered by DIN CERTCO. For mulch films and other applications prone to being left behind in soil, in agriculture, or horticulture, a related certification scheme is offered by TÜV Austria. When claiming biodegradability in soil, the respective product should be certified with the appropriate logo or respective test reports should be available.
As soil conditions do vary broadly, depending on nutrients, temperature, or water content, the conditions for biodegradation differ as well. However, a soil condition suitable for plant cultivation will at the same time provide the necessary conditions, e.g. availability of microorganisms, for soil biodegradable materials.
The following certification schemes and logos can be used:
Biodegradable in marine or fresh water
Certain polymers are able to biodegrade in water. Biodegradability in water is an intrinsic product characteristic, but it is not a dedicated end-of-life option. There can be specific exceptions for applications where bioplastics are occasionally unavoidably lost in aquatic environments, such as fishing gear.
Also, for biodegradation in water, the specific environment is significant: marine water, freshwater, or wastewater/sewage. Even within these specific environments, diversity and concentration of microbes do vary, conditions at the sea floor will differ strongly from those found in a water column. Currently, ISO 22403 is the only international standard available providing clear pass/fail criteria for intrinsic biodegradation of plastics when exposed to marine microorganisms. This standard was not issued to make product claims but rather to assess any ecological risk in case of dispersion. Several test methods exist on ASTM or ISO level, and research on further standards is on-going.
Current certification schemes exist for biodegradability in fresh water and in the marine environment. TÜV Austria offers certification for both, OK biodegradable water and OK biodegradable marine, clearly restricting the authorization to communicate on this certification.
When the global plastics industry is gradually shifting toward sustainable production, another revolution is taking place among plastic businesses – the “green” revolution. The rapid transition to eco-friendly products along with green production and consumption promotion policies is motivating global plastic manufacturers to map out their development strategies for the future.
As a leading plastic Group in Vietnam with an ecosystem of 15 member companies closely following the core business of plastic, An Phat Holdings (Ticker symbol: APH) has found a new direction with a strategic move: Building Southeast Asia’s largest green material manufacturing plant.
In an exclusive interview recently, Mr. Dinh Xuan Cuong – Vice Chairman and Chief Executive Officer of An Phat Holdings has shared APH’s development strategy.
Mr. Dinh Xuan Cuong – Vice Chairman, Chief Executive Officer of An Phat Holdings
From the decision to launch a key project in “the COVID Year”…
– Sir, why did APH choose 2021 – a difficult time for the Vietnamese and international economies to build this large-scale plant? Is this considered a risky “move” of APH?
The green development trend has been emerging for years and is increasingly popular in many countries with policies to protect the environment, reduce plastic waste, and prioritize the development of green and clean materials. Right now, we realize that the global green material market is in a flourishing phase although there is a shortage in supply compare to actual demand. However, it is expected that in the next 3-5 years, environmentally friendly products will dominate the market and gradually replace traditional products.
Besides, when embarking on any new project, we carefully consider 3 basic factors: Firstly, identifying the sector and products which are trendy and potential; secondly, a substantial profit must be estimated; thirdly, the market size should be large enough. At present, APH’s management board and I realize that this project is ensuring the three above factors, so there is no reason for us to delay. I understand that in this project, APH will be the pioneer in Vietnam, so there will certainly be many challenges, but in return, the chance of success is also greater.
– Is this the reason why APH decided to increase the scale of the PBAT material manufacturing plant from a capacity of 20,000 tons to 30,000 tons?
Currently, APH is providing the market with more than 100,000 tons of products per year. In 2019, we exported green products to 5 countries, and by 2020 this number has quadrupled. In Vietnam alone, we believe that if only a part of the traditional packaging product market is converted to biodegradable resins (PBAT), the upcoming plant will be just enough to meet domestic production needs. With an output of 30,000 tons, the market will be able to consume all of APH’s output after the plant comes into operation for one year.
– Why should it be PBAT but not another material in the bioplastics industry?
The cost and applicability of the product are the reason we choose to invest in PBAT. Firstly, compostable products from PBAT compounds will have production costs and prices closer to traditional plastic products because the price gap between these two products is the lowest compared to other bio-materials. Secondly, PBAT is a material that can be industrially produced, capable of being widely used in the production of compostable products that are environmentally friendly, such as knives, spoons, forks, packaging, etc. Besides, packaging product is our competitive advantage and core business for the past nearly 20 years. Thirdly, the PBAT market is forecasted to have the fastest growing among compostable materials, equivalent to a compounded annual growth rate (CAGR) of 18.3%. PBAT is also the material accounting for the largest proportion (17%) in bioplastics.
– Can the upcoming manufacturing plant solve the material problem for APH in the near future, sir?
Currently, the production of APH mainly relies on imported materials. In the context of global trade being affected severely by the Covid-19 pandemic, having to import 95% of raw materials from abroad will pose great risks to APH’s production activities. Also, our member company – AnKor Bioplastics in Korea only meets 1/10 of APH’s demand for compostable materials. Therefore, the construction of the plant will solve the problem of input materials and product prices. When the price barrier is removed, the price gap between the single-used plastic products and the compostable products will narrow, and the environmental-conscious users are ready to switch to eco-friendly products.
… To the goals of joining the global green supply chain
– In the current global scenario that still challenged by Covid-19 and the pandemic is hard to control in the near future, in your opinion, is it difficult to find output for green material products?
In my opinion, the Covid-19 pandemic has never slowed the global green transformation. On the contrary, practical policies to overcome environmental pollution and policies to promote the production and consumption of green products have been implemented. In APH’s traditional markets such as Europe, the US, Japan, and South Korea, the green transition has been speeding up. That is also APH’s target market in the coming time when the plant is completed.
In Vietnam, with policies to reduce, replace and restrict the use of single-use plastic bags to shift to more environmentally friendly products, market potential is huge. Vietnam is also the market where APH can assert its sole position in the supply of green materials.
– In your opinion, how will APH’s decision to invest and expand production of green materials affect the Group’s business and the material market in Vietnam?
From my point of view, businesses today are facing challenges of either catching up with the world’s trend or lagging behind and getting out of the race. Thus, building a green material manufacturing plant is a strategic step that ensures APH’s sustainable growth for at least 20 more years. At present, many domestic and foreign enterprises have also worked with us on the supply of raw materials to produce environmentally friendly products. Thanks to the construction of the first green manufacturing plant in Southeast Asia, APH will change its position from a material-dependent manufacturer to be a proactive player while promoting the development of eco-friendly product manufacturing industries in the coming years.
– What has APH prepared to ensure the success of the project from construction to operation?
There are 3 critical factors that will determine the success or failure of the project: People, technology, and finance.
Our advantage is that we have nearly 20 years of experience in this profession and the global customer network. However, to ensure project run smoothly from construction to operation, we must take up the challenges of the forerunner. Fortunately, we have leaders who have many years of experience in the marketplace, as well as young leaders with creative ideas and a team of enthusiastic staffs.
In terms of technology, after acquiring and having ownership of the company in Korea since 2018, APH has become the only Vietnamese enterprise to hold the patent for compostable materials. In addition, we also have exclusive production technology from Germany, the formula for production is researched by leading experts in the field of compostable plastics at AnKor Bioplastics factory (Korea) and registration for patent protection in Vietnam.
Regarding finance security, APH has prepared comprehensively to ensure that its financial resources will not be depleted during the project’s implementation. In addition to listing on the stock exchange to raise capital, APH’s Board of Directors recently approved the plan to change the project structure from APH’s plant to subsidiary’s plant. This will help open up opportunities for cooperation with investors who want to participate directly in the project, especially in the current context that many foreign financial investors have expressed their interest and desire to invest in the project that APH is implementing.
Manufacturing compostable products at APH’s factory
– The first step is to increase the scale of the green material manufacturing plant in Vietnam, and after that is the plan to build a manufacturing plant in the United States – What is APH planning?
After researching the market and expanding the supply of eco-friendly products in the US market, we see that the scale and growth rate of this market will be the fastest growing in the world. That’s why we have formed a human resource team, built brand image, and established relationships with customers and partners in this market.
Recently, many investors have proposed to cooperate with APH to build factories in the United States, but we prioritize building factories in Vietnam first while continuing research investment opportunities and chance to set up factory in the US with partners. Meanwhile, our member companies – An Phat International or AFC Ecoplastics have been established in the US to promote green product trade and begin preparation to enter these potential markets in the next 2-3 years.
APH invests in research and development activity
APH at the forefront of radical transformation in 2021
– As the first Vietnamese enterprise to invest in green material production, in your opinion, what challenges are awaiting APH?
The challenge of being a market leader is to create market for its product. At present, the cost of environmentally friendly products is 2-3 times higher than conventional products. Also, we just can not change consumer habits in a day. That is a common difficulty for many green material manufacturers.
However, in the middle of every difficulty lies opportunity. APH’s advantage is having modern and exclusive production technology from Germany, production formula researched by leading experts in the field and prestigious international certification for products. Besides, we have nearly 20 years of market experience and brand reputation to confidently bring our products to the most fastidious markets. The price issue will soon be resolved when the manufacturing plant goes into operation and APH takes the initiative in materials.
– In 2021, along with the plan to expand the production of green material, why did APH decide to increase its ownership in An Phat Bioplastics JSC (Ticker symbol: AAA)?
AAA is one of the flagship companies in APH’s business ecosystem, in charge of the packaging segment that accounts for a large part of the Group’s profits. Also, most of the compostable materials we produce will be used as inputs for AAA’s packaging production and consequently, AAA will be the biggest beneficiary thanks to the material autonomy. Thus, raising ownership in AAA will add value to APH’s shareholders.
– As a multi-business corporation, besides green products, can you share more about APH’s development strategies for the next 5 years?
APH aims to become the leading high-tech and environmentally friendly plastics Group in Southeast Asia. Regarding the traditional packaging and engineering plastics segments, we focus on stabilizing production and improving operation efficiency. Meanwhile, the two new areas including compostable materials and industrial real estate will be the key drivers for the Group to fuel growths and enhance its position in the next 5 years.
– The industrial real estate sector is mentioned as a strategic segment in APH’s business plan is also an area of interest to many investors. What are APH’s orientations in this segment in 2021?
In the next 5 years, we aim to develop a huge land bank in Hai Duong, where has a favorable geopolitical position for attracting foreign investment into Vietnam. These industrial zones can create tens of thousands of jobs and are oriented to focus on attracting investment in environmental friendliness in industrial production fields such as manufacturing industries, mechanics, electronics; food processing industry and consumer goods; supporting industries, etc.
– With so many strategic moves, can you give guidelines of the overall picture of APH in 2021?
In 2021, AAA will be back on track thanks to the packaging business continuing its growth momentum, the industrial real estate segment will stay stable, and the supporting industry segment of Hanoi Plastics (Ticker: NHH) will recover post Covid-19 pandemic. Newly-consolidated businesses of AAA and NHH will also fully contribute profits from 2021. We set APH’s net profit target of VND590 billion (~$ 25 million), nearly doubling 2020’s. The net profit target in 2021 for AAA and NHH are VND550 billion (~23,5 million) and VND150 billion (~$ 6,3 million) respectively.
Shoppers in Jakarta will soon be unable to carry their groceries in single-use plastic bags as the Jakarta administration has issued a long awaited gubernatorial regulation banning such plastic bags from traditional and modern markets starting June this year.
Indonesia has been ranked the world’s second-largest user of plastic bags, while their harmful impact on the environment has become a serious concern. (Shutterstock/File)
The regulation – Gubernatorial Regulation No. 142/2019 on eco-friendly bag usage – was signed by Jakarta Governor Anies Baswedan on Dec. 27.
“According to the regulation’s Article 30, the ban will take effect six months after the regulation was enacted on Dec. 31,” Jakarta Legal Bureau head Yayan Yuhana told The Jakarta Post.
The regulation, a copy of which was obtained by The Jakarta Post, imposes a ban on single-use plastic bags in modern department stores, supermarkets as well as traditional markets. Aside from the ban, the regulation will also serve as a legal basis for the usage of eco-friendly bags in stores and markets.
According to the regulation, eco-friendly bags can be made from leaf, paper, cloth, polyester and its derivatives as well as recycled materials. It also should have adequate thickness, be recyclable and designed to be used several times before being disposed of.
The administration defined single-use plastic bags as transparent bags made from various kinds of plastics, including polyethylene and thermoplastics.
The regulation also carries punishments for shopping centers found violating the ban, which range from written warning and fines to permit suspension and termination.
Despite the ban, a number of articles in the regulation still allow shops to provide single-use plastic to “accommodate foodstuffs that have not been wrapped by any packaging.” Such exception, however, will not applicable if alternate eco-friendly packaging is already available.
The plan to issue a regulation banning single-use plastic bags in the city has been in the pipeline since early last year. However, it was put on hold as Governor Anies wanted to include the provision on substitute materials to replace plastic bags in the regulation draft.
Jakarta will be added to the long list of regions across the country that have imposed a ban on single-use plastic bags. The list includes South Kalimantan’s Banjarmasin (the first city to do so), East Kalimantan’s Balikpapan and Bali’s Denpasar.
One supplier’s 700,000 ton capacity buildup dwarfs global demand
Chinese material manufacturers plan to dramatically increase their output of biodegradable plastics made from plants in response to China’s ban against disposal plastic bags.
A single company, China BBCA Group, aims to build up its capacity to produce the plastic to a level that far outstrips global demand.
The scale of these plans attests to the size of China’s plastic waste problem. But it also raises concerns among competitors of a Chinese-driven supply glut the likes of which was seen in solar cells and and wind turbines.
“We want to show our answer to white pollution,” said BBCA President Li Rongjie, using the term coined for waste plastics.
A supplier of lactic acids used in food additives, BBCA in August started up a plant capable of producing 50,000 tons of polylactic acid (PLA) polymers a year, later breaking ground on another plant in December. The group plans to reach the capacity to produce 700,000 tons of PLA annually by 2023.
That same year, the global PLA market will grow to 370,000 tons, according to the Fuji Chimera Research Institute in Tokyo, up from less than 200,000 tons in 2019.
PLA, a biodegradable compound derived from corn and other plants, has a wide range of uses including as nonwoven fabric masks, apparel and drinking straws. Nearly 10 other Chinese companies besides BBCA have plans to raise their PLA capacity, a July survey by China’s Huaan Securities shows.
China BBCA Group made prototype masks, cups and apparel with a biodegradable plastic. (Photo by Shuhei Yamada)
Similar activity can be seen in other biodegradable plastics. Huaan says about 15 companies plan to boost production of polybutylene adipate terephthalate, a petroleum-based compound also known as PBAT.
Major Chinese producers plan to increase annual output of PBAT and polybutylene succinate (PBS) by a combined 1.24 million tons, according to interviews conducted by BBCA’s Tokyo-based partner HighChem. This is 4.8 times their capacity in June 2020.
This trend traces back to January of last year, when the National Development and Reform Commission, China’s top economic planning body, announced a policy to limit the use of non-biodegradable plastic.
In China, 40% of used plastics end up in landfills or as litter. The country is estimated to account for a quarter of the worldwide plastic waste that pollutes oceans.
The Chinese public has complained strongly about the inadequate plastic waste management, to the point where both the state and the Communist Party were forced to respond. The draft five-year plan unveiled by the party in November, which lays out key economic and political goals through 2025, included a provision to “strengthen governance of white pollution.”
The build-up of biodegradable plastic production also aligns with the goals of local governments. The city of Bengbu, where BBCA is headquartered, and the surrounding Anhui Province are providing financial subsidies and tax incentives to the company, and also assisting with PLA business meetings.
Shopping bags and pellets made with PBAT. (Photo by Shuhei Yamada)
HighChem, a materials trading company, sees a large potential for PBAT and recently signed a contract with a separate Chinese manufacturer to import and sell film for agricultural use.
If biodegradable plastic production continues to grow in China, “the cost of use in environmental products will drop,” said HighChem President Ushio Taka.
China’s current demand for non-biodegradable plastic for such uses as bags is estimated in the millions of tons. The government’s policy change could spur a shift toward plastics that break down naturally, which would further expand the market. In that scenario, a supply glut would not immediately occur.
But when Beijing hands down such decrees, local governments typically dangle incentives to increase production, and companies answer the call in anticipation of subsidies and profits. This was the pattern seen previously with solar cells, wind-power equipment and LCD. The scaleup in production disregards profitability, resulting in excess supplies and global price slumps.
In Japan, the government and chemical makers are not as active in biodegradable plastics as Chinese peers, instead focusing on biomass plastics. These are made from non-biodegradable plant material that can be incinerated for energy. The goal is to produce 2 million tons of all bioplastics a year by 2030.
But Japanese suppliers’ ability to meet this target remains limited. Mitsubishi Chemical has the capacity for only 20,000 tons of biodegradable plastics a year through its joint venture with Thai petroleum major PTT. Another supplier, Kaneka, has just 5,000 tons in annual capacity.
There are plans to raise capacity, but “the concern is that we would lose if we competed head-on with the Chinese in investing,” said a Mitsubishi Chemical representative.
Despite the mounting scale among Chinese competitors, Germany’s BASF sees China as a promising market where demand will grow. The company is teaming with a local maker to position itself for a larger market, granting Red Avenue New Materials the license to manufacture and sell PBAT. Red Avenue is building a new plant that will launch in 2022 at a yearly capacity of 60,000 tons.
An Phat Holdings, a leader in the plastic industry, plans to invest in one of the largest compostable material manufacturing plants in Southeast Asia.
Nguyen Le Thang Long, General Director of PBAT An Phat JSC, a member of An Phat Holdings, said the green material market poses great potential with global industry gradually shifting toward environmentally friendly products.
In Europe, the Americas, Australia, Canada and many other countries, governments have enacted bans or imposed high taxes on the production and consumption of traditional plastic and thin monolayer film. The demand for compostable and environmentally friendly products poses the demand for raw materials, opening up golden opportunities for businesses.
Global production capacity forecast for of bioplastics in 2019 – 2025. Graphics by the European Bioplastics Association.
According to the European Bioplastics Association, the green consumption trend has led to the rapid development of bioplastics, forecast to hit 2.87 million tons by 2025 with a growth rate of about 36 percent in the next five years.
Asia remains the major manufacturing hub, accounting for 46 percent of bioplastics production while Europe produces about 25 percent, predicted to increase to 28 percent by 2025.
Future of bioplastics
Besides raw materials produced from corn starch or cane sugar (PLA) and polymerized starch, PBAT – a compostable raw material source is forecasted as the future of the bioplastics industry.
Globally, leading manufacturers like BASF (Germany), Novamont (Italy), AnKor Bioplastics (South Korea) and recently Hengli Group (China) are supplying PBAT at a capacity of about 500,000 tons by the end of 2020.
In Vietnam, An Phat Holdings is one of the first enterprises to enter the PBAT market. “The compostable material PBAT manufacturing plant will open in September 2021, with an expected capacity of 30,000 tons per year, and will be inaugurated in 2023 to participate in the global PBAT material supply chain,” An Phat Holdings stated.
The production of compostable products at an An Phat Holdings factory.
Despite its huge potential, the compostable material market requires Vietnamese enterprises to develop a strong financial and technological background to compete with global players.
“An Phat Holdings is very confident to enter the PBAT market with its position as the largest capitalized enterprise in the plastic industry in Vietnam, boasting a large customer network and global patents for green materials and products,” an An Phat Holdings representative commented.
The PBAT manufacturing plant aims to produce materials meeting BPI Compostable (U.S.) and European TUV OK Compost and DinCertco Compostable standards.
Long said An Phat Holdings utilizes German production technology and South Korean expertise, ensuring the plant’s PBAT material could compete in the international market.
Seventy percent of the PBAT volume would be used to bolster the supply chain of An Phat Holdings, including manufacturing compostable products like compostable garbage, food, and shopping bags, along with straws, paper cups, and cutlery.
The rest will be used for trade and supply to domestic and international manufacturers. Target markets include in the U.S., Europe, Canada, South Korea, and Australia.
An Phat Holdings stated it would reduce the cost of compostable material input by about 20-30 percent for subsidiaries like An Phat Bioplastics and An Trung Industries due to their taking the initiative in raw materials. Thus, the product cost would be reduced, creating a chance to expand domestic and international customer networks.
While enjoying New Year celebrations, many Chinese residents noticed they had to bid adieu not just to 2020, but also convenient, single-use plastic items at supermarkets, food stalls, and coffee shops.
And atop the list are plastic straws, which are almost indispensable in the lives of milk-tea-addicted Chinese young people.
The first day of 2021 also marked the beginning of China’s plan to reduce plastic pollution by banning single-use plastics. The plan was unveiled in January 2020, and details steps to reduce plastic pollution from 2020 to 2025, with the likes of plastic bags and straws targeted in phase 1.
Plastic items banished from markets
A degradable plastic bag used for shopping. /CFP
In Shanghai food establishments, paper straws or polylactic acid straws have already replaced plastic ones, while others have just stopped providing straws all together.
Chen Shi, communication director of the Nayuki milk tea chain, told China Media Group that paper straws have been in use since September 2020, so plastic straws could be completely replaced by year’s end, according to the plan.
“In all the Starbucks stores in China, the plastic straws have been replaced as well, and it could help us reduced plastic usage by 200 tonnes every year,” said Zhu Jingwen, brand manager in Shanghai.
Plastic straws are not the only disposables making an exit. In several supermarkets including Carrefour and RT-Mart in Shanghai, cheap and convenient plastic bags have already been withdrawn from the cashier desks, though customers can pay a premium for recyclable bags.
Degradable straws are used in a milk tea shop in Beijing, in December, 2020. /CFP
In Beijing, supermarkets have also promoted recyclable bags and baskets for rent to replace non-degradable single-use bags. But free rolls of plastic bags provided by supermarkets for packaging food remain as the cheaper and more convenient option for packaging loose items or fresh foods.
The plastic bags ban has also not been well-implemented in areas such as open-air wholesales markets as well. But in Shanghai, supermarkets have been seeking ways to stop such waste, for example, by charging for additional plastic bags used.
Changes behind the scenes
As many companies embrace the new rules, or are trying to, those in the business of producing single-use plastics are also trying to adjust. The main problem – the price gap between single-use plastic items and degradable ones.
In a plastic item producing company in Yiwu City, east China’s Zhejiang Province, Lou Zhongping, chairman of the board, said the cost of production for degradable plastic items are much higher than single-used ones. For instance, it costs the company only 8,000 yuan ($1,225) to produce about a ton of single-use plastic straws, but for the same amount of paper straws, the cost is about 22,000 yuan ($3,367).
The polylactic acid straws cost even more – five-six times of the single-use plastic ones. But Lou said they will complete the degrading process and stop production of plastic straws within 90 days.
According to a plastic products supplier in Anhui Province, the cost of a single-use plastic bag is only 8 fen ($0.012), however, it could cost 25 to 40 times more to produce a high-quality degradable plastic bag.
A degradable plastic bag in RT-Mart in Haikou City, Hainan Province, December 5, 2020. /CFP
Besides the price, technical difficulty is another challenge in the mass production of the degradable plastic items. Not all plastic item producers are qualified enough to produce degradable products.
But as demand continues to rise, Li Erqiao, general manager of a company in Yiwu engaged in producing straws, said that orders for degradable straws are sky rocketing in their factories. While Yao Xinhong, who runs an agency for catering products, said at least 500 boxes of degradable plastic catering products are ordered now, compared to 200 boxes before the rule was implemented nationwide.
According to a report released by Zhongjin Qixin, a consultant company in May this year, the consumption of domestic degradable plastics market is about 22.6 tonnes, mainly used in catering, packaging, and toiletry industries.
A report released by Hua’an Securities predicts that by 2025, the consumption demand of domestic degradable plastics is expected to reach 217 tonnes, with the market scale values 47.7 billion yuan ($7.3 billion). By 2030, the demand is expected to reach 388 tonnes, with a market worth 85.5 billion yuan ($13.9 billion).
AnBio does not only supplies compostable materials to eco-friendly product manufacturers, but also assists customers and partners in distributing those products to consumers.
As a pioneer enterprise operating in the field of biodegradation in Vietnam, AnBio is not only a green material trader, but its business ideal goes beyond that. Born with the mission of promoting the green development strategy of businesses and the whole society, and building a sustainable environment for many future generations, AnBio has been realizing that mission with a clear and thorough roadmap.
AnBio’s vision is to bring green and eco-friendly solutions to our business and manufacturing partners. We can deliver eco-friendly products to our business partners and green materials to our manufacturing partners so that they can switch from conventional plastics.
Accordingly, AnBio builds a closed ecosystem for compostable products and at each point in which the role of AnBio is flexible, shifting from lead to companion and support. The compostable product ecosystem encompasses input materials, the technology and the manufacturing process, and distribution and marketing the finished products to the end consumers.
Providing compostable raw materials
As a member of An Phat Holdings, AnBio has the source of green materials produced at the Group’s factory located in Korea to supply to manufacturer in Vietnam as well as globally. This is one of about 10 enterprises in the world which possess patents and technologies for the production of compostable materials, with 20 years of development history.
The range of compostable material AnBio is extensive, serving a wide variety of manufacturing and technology applications, including:
– Biodegradable resin PBAT
Possessing special features such as great tensile and tear strength, suitable for food-contact products such as food bags. Biodegradable resin PBAT of AnBio has obtained many international certificates including: OK Compost (DIN CERTCO), Reach, SGS Food contact.
– Biodegradable resin PBS:
Having optimal melting index, PBS material can be applied for coating, injection molding and extrusion to produce sheet, film and fiber (fishing net), etc. Biodegradable resin PBS of AnBio has many international certificates including: OK Compost (DIN CERTCO), Reach, SGS Food contact.
– Biodegradable resin PBST:
With high bio-based percentage and low melting index, PBST is mainly used for film blowing technology to produce shopping bags and films.
Biodegradable resin PBST
– Bio-compound:
Bio-compound takes many advantages of high impact resistance, durability and flexibility as well as ability to be used for diversified finished products such as mulch film, shopping bag, single-use gloves, 3D printing filament, etc. AnBio’s bio-compound has obtained many international certifications including: OK Compost (DIN CERTCO), REACH, BPI Compostable, SGS Food contact.
In 2021, An Phat Holdings will start the construction of a compostable material factory in Vietnam, with the design capacity of up to 30,000 tons/year. When the factory comes into operation in late 2022, AnBio will have an abundant supply of raw materials to supply manufacturers around the world.
With a team of experienced, professional and dedicated experts, AnBio has affirmed a certain position and became a reputable supplier in the field of biodegradation. We accompany businesses right from the step of building business strategies towards “Go Green” and supporting them to develop their own implementation solutions. Therefore, it can be said that with AnBio, each customer is a trusted and reliable partner.
Technology consulting and supporting for the production of compostable products
Although they can be applied directly on the machinery system of conventional plastic products, the compostable materials still require different and more stringent production standards and processes. It will take a lot of time and resources of conventional plastic manufacturer to self-adjust machines, train people to operate smoothly and successfully the production chain to produce products with this advanced material.
AnBio provides technology consulting and support for the production of compostable products
With that in mind, AnBio has a team of practical experts and engineers who are always ready to advise on technology, on-site training and production support for manufacturing partners. Businesses cooperating with AnBio must be reputable manufacturers with modern machinery, experienced in production, able to meet the requirements of customers in both quality and quantity.
Distributing and commercializing compostable products
Besides material supply and technical support, AnBio will also play the role of connecting customers with finished product manufacturers. Customers here can be businesses wishing to use compostable products such as chains of restaurants, hotels, supermarkets, retailers, etc. or end-users (through supermarket chains and convenience stores).
Accordingly, AnBio will assist customers to work directly with the processing plants from the first stages of selecting and checking raw materials to strict quality controlling throughout the production process to ensure products to reach customers with the highest quality. This will help customers to simplify working steps and optimize operating costs.
AnBio supports the distribution of compostable products in supermarket chains
Currently, we are cooperating with a number of partners to produce and process food wrap, shrink film, agricultural film. AnBio will constantly expand and develop new lines of compostable products to provide customers with more green choices …
Currently, many regions and countries have issued policies to limit disposable plastic products to protect the environment such as Europe, America, Thailand, Korea, Indonesia, Vietnam … The consumption market of compostable products are, therefore, very big and growing. AnBio is committed to accompanying all business and manufacturing partners who share the mission of protecting the environment and have a common strategic direction for green development.
Coffee giants Nestlé (Vevy / Switzerland; www.nestle.com) and Jacobs Douwe Egberts UK (Maidenhead; www.douwe-egberts.co.uk) have teamed up to roll out “Podback”, a recycling programme for coffee pods, set to begin early next year.
Coffee pods – The main object of the Podback program
The two companies claimed that the scheme will be UK’s first cross-industry collaboration of its kind within the coffee sector. The pair said they were in advanced talks with three UK local authorities – Exeter city council, Cheltenham borough council and South Derbyshire district council – to use the programme.
Launching in early 2021, the scheme will initially cover brands including Nespresso, Nescafé Dolce Gusto and Tassimo. The goal, however, is to expand the programme to include all coffee brands in the UK that use plastic or aluminium pods. Nestlé said that it has been recycling 39% of its Nespresso pods in the UK since 2010.
Coffee capsules are collected for recycling
Coffee capsules collected through the Podback programme can be picked up via standard kerbside collections, collection and drop-off points, or after they are handed over during grocery delivery.
