The UK uses around 5 million tonnes of plastic per year and it is estimated that around 2.8 million tonnes of plastics arise in the UK waste stream each year. Of this, approximately 500,000 tonnes are recycled .
Data of wood waste arisings and recycling rates are difficult to obtain but estimates suggest that between 5 million and 7.5 million tonnes of waste wood are produced in the UK every year and, of this amount, 800,000 tonnes are recycled .
The majority of remaining waste material is sent directly to landfill. The UK Government has, therefore, set targets to reduce waste and to increase recycling and re-use. WRAP has a key role to play in helping to meet these targets.
WRAP has developed a number of targets for plastic and wood recycling to be achieved by 2004. One such target is to identify at least one new technology to produce a composite product using recycled polymer resins with wood. To meet this objective and to assist the wood programme target of identifying new end markets, WRAP commissioned Optimat Ltd in partnership with MERL to conduct a study of Wood Plastic Composites (WPCs) to understand what constitutes wood plastic composite products and to identify the characteristics of the potential UK market. This will assist WRAP in identifying opportunities to help in the development of WPCs (which can be manufactured using recycled materials) in the UK and to examine the viability of WPC manufacturing in the UK.
The key objectives of this study were:
1. To provide a characterisation and comparison of the range and type of WPC materials and end products currently manufactured (in Europe and the USA) to include the identification of input material by type, format and origin (focused on wood and plastic and the identification of recycled and virgin materials) and supply chains relating to that source material.
2. To identify manufacturing companies, licensing arrangements (and holders) and plant manufacturers. To map all current UK sellers WPC materials detailing the nature and size of their operations.
3. To provide a characterisation of current and emerging WPC manufacturing technology and production methods (to include indicative output rates for each)
4. To identify and compare against competing materials, benefits and Unique Selling Points of WPC materials and products for each end market identified. To understand the marketing techniques employed to capture end markets and how manufacturers sell their products
5. To identify and characterise current and emerging end markets for WPC material, to include the likely end-users of products in the UK.
6. To identify standards and specifications (national and international) that relate to WPC material and end products. To identify any standards and specifications which may represent a barrier to WPC material.
7. To identify emerging trends within the WPC market in Europe and the USA and to investigate and identify any future plans of manufacturing organisations to extend production of WPCs to the UK.
8. To examine and draw conclusions concerning the viability of WPC material manufacturing in the UK.
The methodology to achieve these deliverables consisted of a programme of primary (direct consultation with experts in the field of WPCs) and secondary (review of published data and information sources) research. These data sources included, but were not restricted to:
• The world wide web
• Commercial reference databases such as Kompass, Amadeus, Fame and Dun and Bradstreet
• Relevant trade and technical reports and journals
• Trade directories sourced directly or through the Trade Association Forum
• Business information collections such as Infotrac General Business File and Profound
• Commercial market research reports
• National and international statistics from sources such as OECD, National Statistics, and Eurostat
• Our own reference collections and proprietary data In particular we would like to acknowledge the valuable contributions made to this study by the WPC industry and/or technology reviews carried out by The Freedonia Group Inc. and The Chelsea Centre for Recycling and Economic Development, The University of Massachusetts.
Secondary research techniques were used to identify, as far as possible, the materials and products currently available, the raw materials used to manufacture WPCs and the process technologies involved. In addition, information was gathered on typical WPC product prices and manufacturing costs. Primary research was undertaken to obtain information that was not available through published sources and to verify the key findings of the secondary research. It should be noted, however, that much of this information is company specific and, therefore, commercially confidential. As a result, exact details on some of the aspects relating to the manufacture of WPCs could not be obtained, especially those relating to raw materials input and processing parameters. General information is provided for guidance.
Secondary research techniques were also used to analyse the current WPC market position in the USA, Europe and other regions wher WPCs have gained acceptance. This allowed us to estimate the size and value of the current range of WPC markets within these regions and assisted in the process of highlighting similar higher value, higher tonnage markets that may offer an opportunity in the UK. There were, however, limitations to the level of information that could be obtained from secondary sources alone, especially that relating to the European market, which is still at the very early stages of development. Primary research was, therefore, carried out to obtain a view on how the market is likely to develop in the UK and the rest of Europe over the next 5 to 10 years.
The first stages of this study enabled a list of current WPC material producers and product manufacturers to be generated. This list was developed and expanded through the use of trade directories and commercial reference databases to determine the current manufacturers of plant machinery for use in the production of WPC materials and products.
Finally, a competitiveness analysis of the developing WPC sector was carried out. This was done through direct dialogue – either e-mail, telephone or face-to-face - with key stakeholders in the field in the USA, Europe and, wher appropriate, the UK. This was done to determine current and future trends affecting the growth of international WPC markets, the strengths and weaknesses in the WPC supply chain and opportunities for development. Barriers to competitiveness were also discussed and included any that are presented by the enforcement of legislation and/or standards relating to WPC and other associated recycled materials.
