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Egypt turns plastic waste into raw material amid regional supply crisis
A facility in Egypt’s Menoufiya Governorate is converting plastic waste into granules that can be used to produce hoses, seeking to reduce dependence on imported raw materials. Rising plastic raw material prices following the US-Israeli attack on Iran have increased the importance of local recycling.
In Sadat City, located in Egypt’s Menoufiya Governorate, plastic waste is being converted into granular raw material that can be returned to production lines. Facility owner Alaa Nasr said the method could reduce dependence on imported raw materials and external supply chains.
Plastic pieces collected and crushed at the factory undergo several processing stages. The resulting product is sent to other factories for use in producing hoses, particularly those used in the agricultural sector. Some of the hoses are used in Egypt, while others are exported to Arab countries such as Libya and Iraq.
Regional crisis deepens supply problems
Nasr said developments including the crisis around the Strait of Hormuz, wars and the detention of ships had worsened supply problems in the plastic recycling sector. He said production using imported raw materials could be disrupted by shipping delays and fluctuations in the dollar exchange rate.
The factory must deliver a specified quantity of its product to hose production lines by the agreed deadlines. Nasr said recycled plastic was less costly than imported unprocessed raw material and helped meet part of the demand in Egypt.
Plastic waste converted into granular raw material
The production line first processes plastic pieces that have previously been collected and crushed. The material known as “crushed plastic” is transferred to a filtered machine that separates foreign substances and substandard pieces.
In the second stage, the plastic material is turned into strands in a pool and then cut. Once processing is complete, the waste plastic becomes small granules suitable for delivery to hose factories.
The Egyptian government provides workspace and financial support to people working in the sector. The facility in Sadat City also aims to reduce external dependence by returning waste to production during a period of global supply problems.
Local product cheaper than imported raw material
Fluctuations in international trade have increased the importance of recycling activities in Egypt. Unofficial estimates put the global price of plastic raw material at more than $2,000 per ton after rising 100% following the US-Israeli attack on Iran.
The estimated price of recycled plastic raw material in Egypt after the crisis is approximately $1,000 per ton. The comparison highlights the cost difference between local recycling and imported raw material.
Waste volume reaches millions of tons in Egypt
Millions of tons of waste are generated in Egypt every year. In August, Ahmed Khayal, director general of strategic management at the Waste Management Regulatory Authority affiliated with Egypt’s Ministry of Environment, announced that the country generates approximately 29 million tons of waste annually.
Egypt’s Cabinet-affiliated Information and Decision Support Center calculated the amount of plastic waste generated in the country during 2022-2023 at 2.5 million tons. The amount of plastic recycled during the same period was 1.5 million tons, while total public- and private-sector investment in plastic waste recycling was estimated at between 1 billion and 2 billion Egyptian pounds.
Approximately 1,800 people work in this field, while Egypt’s total annual waste volume ranges between 26 million and 28 million tons, with plastic waste accounting for 10-14% of the total.
Egypt targets 50% recycling by 2030
Egypt is implementing plans to increase its plastic waste recycling rate. The country aims to recycle 50% of its plastic waste by 2030.
Investment in Egypt’s plastics sector exceeds $20 billion, while the sector contributes approximately $2.6 billion annually to the country’s exports and provides employment for more than 700,000 engineers, technicians and workers at approximately 12,000 factories.
A 2023 assessment stated that Egypt ranked first in the Arab world and 42nd globally among 180 countries for the recycling indicator in the 2022 Environmental Performance Index. Egypt ranked 14th globally and first among Arab countries in recycling rates in 2023.
Egypt has 28 recycling factories. The private sector collects more than half of the waste in Cairo Governorate, while approximately 80% of the capital’s waste is recycled, including 290,000 tons of plastic waste annually.
Approximately 50,000 processors and 150,000 collectors, sorters, traders and truck drivers work in the waste sector.
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