Cawleys

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Brexit and the Waste Trade – Cawleys' MD Phil Gudgeon gives his view

The success of the waste industry in the UK owes a lot to its long-standing relationship with our overseas cousins. Not only are large quantities of UK recyclate exported across the globe every single day, the industries work force is made up of many hard working and reliable foreign nationals. Whilst the sector is no stranger to overseas policy changes, such as China’s recent waste import ban, the looming threat of Brexit is a whole different conundrum. The fundamental problem is that although EU leaders have approved the terms of the deal, we just don't know if UK politicians will back it. As such it's still undecided whether there will be a hard Brexit, soft Brexit or no deal at all, an uncertainty that makes it extremely difficult to predict or plan for an outcome. As such, assessing which areas of business are the greatest cause for concern is somewhat tricky however, after careful consideration I have identified two main areas on which to focus our immediate Brexit attentions.
Firstly, refuse derived fuel, or as it is known in the industry, RDF. RDF is an extremely important element of waste disposal. Of course, at Cawleys we do everything in our power to ensure as much as possible of the waste we received is recycled. Be it paper, plastic, wood, metal, food or even coffee, effective segregation at source combined with our state of the art materials recycling facility allows us to collect, sort and segregate thousands of waste items each day for specified recycling. However, as we all know life isn’t perfect and we live in a world where recyclate needs to be collectable, sortable and commercial for the recycling process to flourish. For waste that does not fulfil these elements, or is not currently recyclable, the next best option is to put it to use as fuel. The demand for RDF comes predominantly from Northern Europe and although there are a number of RDF facilities in the UK, our nation is not yet in a position to derive large volumes of power from this source. Luckily many northern European countries are ahead of the curve on the RDF trend and this provides an ideal and ethical way for UK waste management organisations to sustainably dispose of this waste without contributing to landfill. Currently significant quantities of RDF bales are packaged up our facilities ready for export.
Any changes to export laws could have a significant impact on our RDF pipeline. Exchange rate fluctuations may result in increased costs and if there are blockages on exports or delays at the ports, waste management companies could be left with a surplus that would need an alternative method of disposal such as short-term landfill. It goes without saying that this is not a desirable solution for anyone and if this were to happen we will do all we can to find a suitable alternative. However, limited RDF capacity in the UK means that if a viable alternative can’t be found resorting to landfill could be the only option causing a step backwards in the fight for a greener system and increased disposal costs.

The second fundamental cause of concern is that of labour. Like other recycling facilities across the country, Cawleys employ a large number of European nationals. In preparation for Brexit we are doing all we can to keep communication channels open. We are consulting with them on a regular basis to identify whether or not they are likely to stay in the UK or return to their home countries and we are mindful of the impact exchange rates could have on their decisions. We have an extremely loyal and reliable European work force who we value and we will do all we can to retain these individuals.

Ultimately our priority will be our customers and if Brexit were to have a negative impact on some areas of our business we are fully prepared to manage the changes whilst keeping any resulting price fluctuations to a minimum. As with all businesses, it is very difficult for us to predict with any precision what the actual outcomes will be, but whatever the end hurdles we are confident that our commitment to our key values and our long running family heritage we stand us in good stead for the storm ahead.