Novel business on DURable and COMPostable products based on REcycled plastic

Project Information

ReDurComp

Grant agreement ID: 674067

DOI

10.3030/674067

Project closed

EC signature date 8 April 2015

Start date 1 May 2015

End date 31 October 2015

Funded under

• SOCIETAL CHALLENGES - Climate action, Environment, Resource Efficiency and Raw Materials

Total cost

€ 71 429,00

EU contribution

€ 50 000,00

Coordinated by

INDUSTRIAS TERMOPLASTICAS VALENCIANAS, S.A.
Spain

Periodic Reporting for period 1 - ReDurComp (Novel business on DURable and COMPostable products based on REcycled plastic)

Reporting period: 2015-05-01 to 2015-10-31

Summary of the context and overall objectives of the project

INTERVAL intends to launch innovative, low-cost products onto the market based on the premium recycled PE through a specific procedure for the collection and treatment of plastic. Initially, the company want to start with two products for which a clear market need in recycled polymers has been identified (“durable plastic covers for pallets” and “compostable plastics sacks for household waste collection”), extending this activity at a later date to other plastic markets.
Both markets present a clear attractiveness. Regarding the market 1, Plastic sacks for household waste collection, 136,000 million of sacks are sold per year (272 per EU citizen). Moreover, a rising demand for biodegradable/compostable sacks has been boosted with the introduction of the selective collection of organic waste in several European regions.
The market 2, Plastic covers for pallets, accounts for 150 million units per year solely in the cement and ceramics sector in the EU28. They are used in a wide range of products stocked in the open air for long periods of time including construction materials, chemical substances, industrial appliances, and packaging.
INTERVAL has worked in a Research for SME Instrument Phase 1 (ReDurComp-674067) with a view to evaluate the technical and economic feasibility.
Both product have shown a highly positive economic feasibility. Both the market assessment and the business plan have demonstrated a clear opportunity for the company. Concretely, the business of the two new products, which could be extended to the whole EU28, will initially be focused on Spain, Italy, The Netherlands, and France, and will highly increase the sales of the company in a 5-year period. Considering as reference data, the plan is to start with a progressive gathering of new customers reaching 60 clients (retailers for Product 1 (plastic sacks) and construction and ceramic companies for Product 2 (plastic covers)) by 2021.
Regarding the technical viability, some initital limitations have been observed in the compostability and resistance of the products. Therefore, INTERVAL will follow with the work in the improvement of the formutation of both products.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

At phase I, Interval undertook a Feasibility Study to reduce risks. This study was focused con four key areas: a) technical feasibility analysis, b) market analysis, c) stakeholder analysis, and d) business plan.
A feasibility assessment of both products (plastic sack and plastic cover) has been carried out in Phase 1. Product 1 (plastic sack) has been validated regarding biodegradability/compostability according to ISO 14855-1:2012 and EN 13432:2000 and recyclability/resistance (UNE-EN 13592:2003). Product 2 (plastic cover) has been tested on oxidative stability and UV stability (ASTM D3895-07; ISO 4892-3:2006). The results show some initital limitations in the compostability and resistance. Therefore, INTERVAL will follow with the work in the modification of the formutation of both products. Some of the strategies to be followed will be to increase concentration of certain additives as well as to select improved plastic sources subjected to lower sun exposure.
A market analysis has been carried out on both products. This has been focussed on customers and stakeholders. Regarding the product 1, two focus groups were done in Barcelona and Valencia. People in charge of organic waste management in each city were invited. The main aim was to test the new sacks solution (opinion, likes, dislikes, interest of use in their cities, etc.) through a qualitative guideline. The results show that there is a demonstrated market interest for new solution. New plastic sacks for household waste collection should focus at the beginning on more developed markets were organic waste collection is already a reality. Regarding the product 2, personal in-depth interviews were conducted with sustainability responsible of different ceramic companies to study market penetration for pallet covers showing a high interest on the product.
Finally, a business plan has been elaborated. It has included the study of the business models, competivite advantages and commercial and marketing plan. Moreover, this work has been structurated taking into account the results of the coaching plan. Finally, this information has been compiled in a financial plan, based on the fact that the business of the two new products, which could be extended to the whole EU28.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

ReDurComp brings a highly innovative response to environmental concerns and represents a considerable growth opportunity for INTERVAL. This project presents important economic, social and environmental impacts.
Economic impact. The introduction of both products in the market will create new economic activity in INTERVAL as result of potential new sales. Demonstrated demand and non direct competitors for both solutions ensure a clear market penetration in a mid-term period.
Social impact. The entrance of the new products in the market will allow Interval to increase activity in purchases, production and sales, involving the creation of new local jobs.
Environmental impact. New Interval products (plastic sack and plastic cover) will boost demand for recycled materials since they will offer an affordable and environmentally compatible solution. This is directly related to the EU objective to push SMEs towards a more resource-efficient, circular economy for which improving waste management, stimulating innovation in recycling, limiting landfill, and creating incentives to change consumer behaviour are defined. Making this recycled PE material and its derived products available on the market will mean a significant reduction in the use of products made from non-renewable petroleum raw materials, and will therefore contribute to reduce CO2 emissions.

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