Discover how embracing recycled content in polythene packaging not only reduces costs but also enhances competitiveness in the face of increasing taxes.

Unlocking Cost Efficiency: Embracing Recycled Content in Polythene Packaging

This guide aims to aid firms in reducing overall blend costs.

Chase stated that PPT receipts have exceeded HMRC’s year one estimate, indicating that many manufacturers are yet to adopt recycled content to mitigate the tax burden.

With PPT impacting the competitiveness of UK polythene packaging manufacturers—especially with the rate hike to £217.85/tonne on April 1st—Chase has released the guide.

It underscores that for every tonne of polythene packaging produced without the mandated recycled content, the actual cost of PPT on the 300kg of virgin material used amounts to approximately £726 per tonne.

David Harris, chairman of Chase Plastics, expresses genuine concern that UK-based manufacturers risk their competitiveness by not embracing rPE opportunities.

The company emphasizes that aside from the price disparity caused by the tax, products made with 100% virgin polymer lack appeal to end users seeking sustainable packaging solutions.

Understanding the cost differential between virgin polymer and 30% recycled content is crucial for safeguarding margins and competitiveness, especially with the impending PPT increase on April 1st.

Our Cost Comparison Guide features a ready reckoner highlighting the breakeven points for recycled content to avoid PPT and significantly reduce overall blend costs.

Chase continues, "The PPT was designed to incentivize the use of recycled content, yet not all manufacturers have realized the financial benefits. As we approach year 3 of the tax, it's vital that UK-based polythene packaging manufacturers grasp the cost implications. To aid this, we're publishing a cost comparison guide to showcase the savings achievable with our RECOTHENE rPE product. We hope this simple guide will drive greater adoption of recycled content, thereby contributing to the Circular Economy."


Keywords

blend costs reduction , recycled content , polythene packaging tax , competitive advantage , circular economy

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