Recyclers’ troubles are not getting better: Talking Points 

A lack of government support and few economic incentives are breaking an essential link in the sustainability chain.
Feb. 6, 2026
3 min read

Key Highlights

  • Plastics recyclers are struggling due to low-cost virgin resin production and imported recycled materials, making it hard to compete economically.
  • Limited government incentives and lack of regulations hinder the growth of recycling efforts in the U.S., unlike in Europe where stronger policies are emerging.
  • Advocates push for national funding, minimum recycled content laws, and product design improvements to support a circular plastics economy.
  • The European Union is actively working to address market fragmentation and unfair competition, with upcoming regulations to stimulate demand for recycled plastics.
  • Industry leader Ulrich Reifenhäuser has retired; his influence supported global plastics innovation and circular economy initiatives.

If you think your business has been tough, you are in great shape compared with plastics recyclers. Recyclers seem to be in a downward spiral with little reason to believe things are going to get better. 

The latest example of recyclers’ plight is the announced March closing of the PET recycling facility near Reading, Pa., owned by Alpek SAB de CV. 

I visited the bottle-to-bottle recycling plant in 2023 just as it was coming up to full production and was impressed. The facility was built for recycling. Machinery was new and state-of-the-art. Staffing was adequate and everyone appeared to be well-trained and motivated. 

That was not enough. 

Manufacturers of virgin resin have become very efficient at producing low-cost material in huge volumes. Low-cost imported recycled resin adds to the domestic supply. Processors do not want to pay the higher cost for recycled material unless they are forced to do so. Virgin resin is also easier to process.

There have been other closings of plastics recycling facilities. Alpek, based in Monterrey, Mexico, closed a plant in North Carolina that produced both virgin and recycled resin. Other high-profile plants closed were rPlanet Earth and Natura PCR, both in 2025. 

What’s missing? What could make business better for plastics recyclers? 

There is a lack of support for the U.S. plastics recycling industry. There have been government incentives for renewable energy, but little support for plastics recycling, which can accomplish many of the same positive things for the environment. 

There are no regulations to force brand owners to use recycled content. Only seven states have Extended Producer Responsibility (EPR) laws for packaging, which can provide funding to support recycling. 

The Association of Plastic Recyclers advocates for national funding and strategic coordination of plastics recycling efforts. It supports a national EPR program for packaging, minimum recycled content requirements, product design that facilitates recycling and bottle deposit laws. 

Why should a plastics processor or machinery builder care? 

Our goal has to be achieving a circular plastics economy. That will make all our businesses healthier and will lower the volume of the anti-plastics drumbeat.

Recyclers are a foundation for the circular plastics economy. Supporting recycling by developing strong markets for recycled resin will boost investment. 

Recyclers in Europe are in even more dire straits than here, but the European Union seems poised to help. 

“…We need to act faster when it comes to plastic recycling, because if we don’t do that, then we will not have a recycling industry in Europe — that will be very bad for our circularity,” EU Commissioner Jessika Roswall said at the recent 2026 World Economic Forum in Davos, Switzerland.

Sustainable Plastics magazine reported Roswall’s comments. She also described measures currently before the EU to address market fragmentation, unfair competition and the lack of a level playing field for plastics recyclers. A more comprehensive regulation to stimulate demand for circular products is coming later this year. 

Nothing like that is happening here. 

If you believe the plastics recycling chain is only as strong as its weakest link, then it is time we all worry about recyclers. 

A notable industry retirement 

Someone once told me that Ulrich Reifenhäuser was the most important plastics industry leader in the world. I would certainly put him in the Top 3. 

Reifenhäuser retired as managing director of the Reifenhäuser Group in early January after 33 years. He was the third generation to run the family-owned manufacturer of equipment for plastics extrusion. He is remaining as a member of the company advisory board and brother Bernd remains as CEO. 

He served multiple terms as board chairman or vice chairman of the prominent plastics and rubber machinery division of the German trade association VDMA. He has been chairman of the K show’s exhibitor advisory board since 2004. 

He was also passionate about supporting the plastics circular economy and in that touched the industry worldwide. 

Reifenhäuser was always available at shows and industry events to support his company, the German plastics industry and plastics worldwide. I spoke with him many times. He never dodged a question and was always factual and pragmatic with his answers.

I hope he stays involved in the industry for a long time. His voice is important. 

About the Author

Ron Shinn

Editor

Editor Ron Shinn is a co-founder of Plastics Machinery & Manufacturing and has been covering the plastics industry for more than 35 years. He leads the editorial team, directs coverage and sets the editorial calendar. He also writes features, including the Talking Points column and On the Factory Floor, and covers recycling and sustainability for PMM and Plastics Recycling.

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