the sector fears for its activity

At a time of energy and ecological transition, the message may seem paradoxical. Last year, recycling companies recorded an overall turnover close to 12 billion euros, up 8% compared to 2021. Published by the Federation of Recycling Companies (Federec), these figures call out at a time when the Pollutec exhibition is being held in Lyon until Friday October 13. It is the annual international meeting for solutions for the environment in industry and cities.

>> Environment: France is a bad student of recycling

If the overall turnover is increasing, this is not the case for profits which are in decline. The turnover represents the volume of activity, the profits (net result), it is what remains after payment of contributions, taxes and various charges. Particularly this year, profits are falling because recycling companies have had to absorb rising energy and transportation costs, two essential items in this profession. Finally, also note a decline in collection combined with the drop in the costs of raw materials from recycling.

The difficulties of the sector

For example, the “Plastics” sector is facing a collapse in demand for recycled materials, and prices have fallen with the fall in the price of a barrel of oil used to manufacture plastic. As for major clients, particularly in packaging, they now prefer to use virgin, natural materials. There is therefore a double scissors effect on the profitability of recyclers, to which must be added the administrative hassle which increases with the reorganization imposed on several sectors. The profession itself is in the midst of a transition.

Recycling involves 1,200 companies spread across the country. They employ just over 34,000 people, 90% of them on permanent contracts (permanent contracts). Last year, forty million tonnes of recycled raw materials were produced and sold. Recycling scrap metal alone represented the equivalent of 1,150 Eiffel Towers.