Following the launch of the Confederation of European Paper Industries (CEPI) Key Statistics for 2006 (1), CPI can confirm that the UK has increased recovered paper collection to above the European average when calculated using the same methodology. However, a degree of caution is required, as the UK is in a rather unique position in terms of the trade and utilisation of already converted paper and board products and packaged goods.

Using data from CPI mill returns, and HM Revenue and Customs export data, it is calculated that the UK collected 65.1% of the unconverted paper and board products consumed in 2006, 1.5% above the European average of 63.6%. However, the calculation method for the above figures does not take into consideration the net trade in already converted paper and board products (such as printed books, magazines, cards), or the net trade in packaging around finished goods (such as corrugated boxes around imported goods). At a European level, the net trade in this type of paper and board is taken to be in balance.  However, CPI estimates that in the case of the UK this added over 1.5 million tonnes in 2006 to that available for collection from the UK waste stream. If this additional tonnage is incorporated into the calculation, the UK’s collection rate drops to 57.8%, 5.8% below the European average.

The CEPI statistics also clearly show the major differences between the UK and the rest of Europe in terms of the UK’s reliance on the export market for paper and board recovery. Whereas Europe on average recycled 88% of the material it collected, the UK recycled only 52%, with this figure set to fall further through 2007. UK paper mills continue to lead the way in terms of recovered paper usage against production, with a recovered paper utilisation rate of 75% against a European average of only 48%.

The figures suggest there is still a degree of low hanging fruit for recovery in the UK without resorting to high-risk collection methods such as single stream (co-mingled) collections of mixed recyclables.  This is key given the new landfill pre-treatment requirements coming into force in October for non-household waste streams, and the increased landfill tax escalator which will make the economics of recycling more attractive. Other European member states are achieving much higher collection rates for recovered paper through traditional recovered paper collection methods which protect the integrity of the material and reduce the burden on the recycling chain.

Commenting on the figures, Peter Seggie, CPI’s Recovered Paper Sector Manager, said: “These figures confirm the continued development of recovered paper collection in the UK and are encouraging, but they need to be taken in context.  The UK is in a rather unique position in Europe with regard to its increasing collection of recovered paper, but in reality, the UK continues to have one of the lowest domestic recycling rates in Europe: 33.9% against a European average of 56.3%. This is mainly due to the huge imbalance between UK production and consumption. The UK produces less than 50% of its domestic paper and board needs, and has a low level of exports. This means that even with a very high utilisation rate in the mills, domestically we only use just over 50% of the material we collect.

“Because of the improving collection rate, 2006 saw the UK export just under 50% of the material collected, however exports have overtaken domestic usage through 2007. This position is sustainable as long as there are expanding overseas markets (as currently being experienced with China), but the increasing collection rates of European partners mean they will become strong competitors in the future. Should any issues arise with overseas demand, the UK will be among the first to suffer because of our low domestic reprocessing level. There have been no further announced UK closures in 2007, and some signs of new production capacity; however, in the short term the export market will need to continue to absorb increased collection levels.”

(1) http://www.cepi.org/content/Default.asp?PageID=4

ENDS

For further information please contact Peter Seggie, Recovered Paper Sector Manager, on 07887 641481 or email pseggie@paper.org.uk.

Notes to Editors

• CPI is the voice of the paper industry in the UK, representing papermakers, tissue manufacturers, corrugated packaging producers, and recovered paper merchants.
• The Recovered Paper Sector represents three main categories within its Membership:
  • UK Mills using recovered paper as a raw material;
  • UK Integrated Recovered Paper Merchants affiliated to Papermill Groups; and
  • UK Independent Recovered Paper Merchants independent of Papermill Groups.
• The Recovered Paper Sector integrated and independent Recovered Paper Merchant Members manage around 67% of UK collected recovered paper.
• The Recovered Paper Sector Mill Members utilise around 75% of UK used recovered paper.
• For additional information on the UK paper industry, in the first instance, please contact Catherine Watson, External Affairs Coordinator, on 01793 889612 or email cwatson@paper.org.uk. Alternatively, please visit: http://www.paper.org.uk.