Bottles from landfills go back to production - Recycling plant, Alwag, continues investments and plans PET packaging production

(Alwag in Nova Gajdobra)

Undeveloped collection network and absence of primary waste separation in our country caused that thousands tons of PET packaging are thrown away and that only some 15% is recycled. Alwag decided to face all the difficulties which this industry in Serbia brings and to invest EUR 7 mil in the recycling plant at Backa Palanka. As they announce, they will continue with investments and they might start production of PET packaging in our country.

- Alwag’s majority owner is Aling Conel, which is one of the leading producers of electric installation material in the region and 10% is owned by the Austrian Reiwag. Plant for PET packaging in Nova Gajdobra started production late last year. We invested EUR 7 mil, EUR 2,6 mil of which went to most modern German technology. We invested in infrastructure in industrial zone in Nova Gajdobra and we also implemented the waste water treatment system so that everything would be environment-friendly -Stojan Dangubic, a director Alwag said for eKapija.

Plant for PET packaging recycling and production of RPET flakes are based on an innovative equipment of German B+B Anlagenbau GmbH.

Alwag exports 95% of its production to Austria, Italy and Germany and the product is placed mainly to companies which produce foils or bottles for food or pharmaceutical industry.

(Stojan Dangubic receiving Aurea award)

- Plants in Serbia also buy but smaller quantities because they do not have big production which is mostly limited to this market. Since our daily output us is 50 tons we are however focused on export.

Our collocutor says that the annual plant capacity is 13.000 tons but that the biggest issue is to work with full capacity because they do not have sufficient raw materials.

- We are now trying to collect as much packaging as possible since Serbian market is not maintained and that packaging is disposed just as it did 5o years ago. In the European Union and neighboring countries, there is a collection of some kinds of materials such as PET packaging, paper, glass, rubber or there is a fee for secondary raw materials collection. We built the plant dealing with recycling and we thought we are not going to dealt so much with collection – Dangubic explains.

Alwag procures raw materials from public utility companies and private secondary raw materials collectors.

The collocutor of eKapija points out that more than 60.000 tons of PET packaging is thrown away and if there were for organized collection in Serbia, four plants such as the one in Nnova Gajdobra would be essential.

- Due to problems with raw materials collection and lack of organization in our country, the plant operates with the capacity of 35 do 40%. We have a constant problem because our buyers want to sign annual contracts with larger quantities. They visited our plant and saw we have the most modern equipment and big capacities so they expect from us large product quantities as well.

(RPET flakes)

The General Manager at Alwag says they cannot, as other recycling branches, import raw materials because transport is expensive but that this way they will have to get to raw materials as well unless the collection method in Serbia changes.

- We will try in all ways to use as much as our capacities as possible. Our plant could process PET packaging from the entire Vojvodina territory. For our efforts to provide bigger quantities, we will have a new investment in the next three months totaling EUR 1, 3 mil. It is a new sorting facility which will enable us to buy from our suppliers PET packaging which is not sorted by colors which will be done in a new sorting facility. Apart from that, we will make two new mills which will enable us to clean packaging coming from landfills mixed with biodegradable raw materials before it enters in the recycling process –Dangubic is announcing.

Alwag has 55 employees and as the company reps say, the number of collectors on site is bigger than 300. Taking into account that the company has capacities for the third shift, another 50 people could soon find a job in Nova Gajdobra.

Innovation, financial potential and social benefit of the plant for PET packaging recycling was recognized by eKapija, and the jury of this year’s Aurea award, awarded Alwag with the special acknoledgment for social benefit .

Apart from increasing the quantity of PET packaging recycling, Alwag has other plans as well. As the company representatives say, if they succeed in procuring raw materials which will cover 70-80% of capacity, they would like to start production of bottles or PET packaging which is in increasing demand in the world.