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【Hot attention from Chemical Machinery and Equipment Network ] Recently, Bohu County* has vigorously carried out special rectification work in the waste plastic industry, and investigated and rectified enterprises that recycle and recycle waste plastics within the county.
Law enforcement officers will follow up on those enterprises that are found to have problems in inspections.
Work reminders are issued, requiring companies to carry out strict rectifications in accordance with relevant regulations.
Next, the environmental management of the waste plastics processing industry will be further regulated, and further requirements will be put forward for waste plastics processing and utilization enterprises to prevent secondary pollution.
Hot attention of Chemical Machinery Equipment NetworkChemical machinery and equipmentLaw enforcement officers will follow up on those enterprises that are found to have problems in inspections.
Work reminders are issued, requiring companies to carry out strict rectifications in accordance with relevant regulations.
Next, the environmental management of the waste plastics processing industry will be further regulated, and further requirements will be put forward for waste plastics processing and utilization enterprises to prevent secondary pollution.
In recent years, under the guidance of environmental protection and national policies, the standards of waste plastics processing industry have continuously raised the threshold, and the risks have also increased.
For manufacturers and traders of recycled plastics, the main operating risks are as follows:
For manufacturers and traders of recycled plastics, the main operating risks are as follows:
01 Policy
The recycled plastics industry is a policy-oriented industry, and the impact of policies on the industry is very far-reaching.
For example, environmental inspections, for most producers, if the area in which they are located irregularly faces environmental inspections, the stability of production will naturally be affected; the same is true for traders.
If production is unstable, their own supply of goods will also be constrained.
Another example is the “ban on the import of waste plastics” that was gradually implemented in 2017.
For processing plants, it means that a stable source of wool is about to be cut off, and it needs to start building new wool collection channels.
For example, environmental inspections, for most producers, if the area in which they are located irregularly faces environmental inspections, the stability of production will naturally be affected; the same is true for traders.
If production is unstable, their own supply of goods will also be constrained.
Another example is the “ban on the import of waste plastics” that was gradually implemented in 2017.
For processing plants, it means that a stable source of wool is about to be cut off, and it needs to start building new wool collection channels.
02 Qualification risk
Under the environment-friendly production pattern, if a company wants to* be based in the recycling industry, it needs to improve various procedures and qualifications.
This aspect of risk is mainly for producers.
In the past two years, the frequency and severity of environmental inspections have been high.
Many home-based workshops have been repeatedly investigated for problems such as qualifications, incomplete procedures, or substandard equipment.
In addition, the scope of procedures in some regions is rather vague, and the procedures that some companies have gone through after the policy changes are no longer recognized.
Such risks are more common in small and medium-sized markets.
This aspect of risk is mainly for producers.
In the past two years, the frequency and severity of environmental inspections have been high.
Many home-based workshops have been repeatedly investigated for problems such as qualifications, incomplete procedures, or substandard equipment.
In addition, the scope of procedures in some regions is rather vague, and the procedures that some companies have gone through after the policy changes are no longer recognized.
Such risks are more common in small and medium-sized markets.
03 Channel
Channels are mainly divided into procurement and sales channels.
Only when there is buying or selling can it be called a transaction.
If only production is possible but sales are blocked, the producer's operating risk will inevitably increase.
In addition, the same is true for procurement.
After the original waste plastics were banned in 2018, many recycling companies that originally used imported waste plastics as wool face the risk of the collapse of their procurement channels and have to look for domestic waste plastics to replace them.
Only when there is buying or selling can it be called a transaction.
If only production is possible but sales are blocked, the producer's operating risk will inevitably increase.
In addition, the same is true for procurement.
After the original waste plastics were banned in 2018, many recycling companies that originally used imported waste plastics as wool face the risk of the collapse of their procurement channels and have to look for domestic waste plastics to replace them.
04 Profit risk
Compared with the profit of thousands of yuan/ton in the past few years, for most recycled plastic products, most recyclers are gone forever, and now low-profit operation is normal.
Taking recycled polyolefin as an example, the profit in 2020 will also drop to 100-300 yuan/ton.
If problems such as after-sales or debts are encountered, the profit will be further compressed.
How to operate smoothly in the era of meager profit will be the key to directly test whether a company can continue to survive.
Taking recycled polyolefin as an example, the profit in 2020 will also drop to 100-300 yuan/ton.
If problems such as after-sales or debts are encountered, the profit will be further compressed.
How to operate smoothly in the era of meager profit will be the key to directly test whether a company can continue to survive.
05 Capital risk
Whether for producers or traders, capital is a very important part.
At present, cash transactions are mainly used in the process of purchasing wool, which directly tests the cash flow of production enterprises and traders.
In the particle transaction link, the transaction between the production company and the trader is usually settled in cash, and the trader in this link needs to have sufficient cash flow; most of the transactions between the production company and the downstream product company have a certain accounting period or acceptance transaction.
This type of transaction requires the production company to have a certain amount of cash flow.
cash flow.
According to Zhuo Chuang Information, some downstream funds are currently in serious dilemma.
Recycling companies have a long payment period, which leads to a greater risk of capital return.
At present, cash transactions are mainly used in the process of purchasing wool, which directly tests the cash flow of production enterprises and traders.
In the particle transaction link, the transaction between the production company and the trader is usually settled in cash, and the trader in this link needs to have sufficient cash flow; most of the transactions between the production company and the downstream product company have a certain accounting period or acceptance transaction.
This type of transaction requires the production company to have a certain amount of cash flow.
cash flow.
According to Zhuo Chuang Information, some downstream funds are currently in serious dilemma.
Recycling companies have a long payment period, which leads to a greater risk of capital return.
06 Manage risk
At present, most recycled plastic companies are upgraded from family workshops, without systematic management and planning, and most companies have certain operational risks as a whole.
At the same time, according to industry development trends, most companies have not yet formulated a clear business plan.
At the same time, according to industry development trends, most companies have not yet formulated a clear business plan.
Observer said:
In the face of the above aspects, it is necessary for processing plants and traders to strengthen their risk management awareness, be familiar with the policies and follow the development direction of the industry, and do a good job in the industrial layout, such as consolidating the stability of raw material sources, opening up downstream product companies, etc.
, and do a good job in cost control, etc.
, To be invincible.
, and do a good job in cost control, etc.
, To be invincible.
Original title: Recycled plastics: What are the risks in processing and circulation? How to avoid risks?
