Market and Competitors Waste Glass is a volumes material unlike other recyclable materials, moving such materials incur high costs and handling is even more difficult. Processing waste glass requires high end optic sorting system and technical expertise to match the requirements of its customers the glass manufacturers. Manual or semi-automated systems are not effective loosing the customers and incur higher operating costs. With this inherent factor glass recycling has not developed to the extent that we actually think it does. In most countries and places, glass which is collected on the pretext of recycling actually ends up in the landfills Being the first and only player in this business does not ensure there is a lack of competition as it’s relatively cheaper for glass manufacturers to use virgin material, totally eliminating production losses due to quality issues than use processed recycled glass. To match this strict requirement and price restrictions is the challenging factor and once met is the competitive advantage the company has over imported processed recycled glass.
Product, Process and Competitive advantage of the Product The finished product is called glass cullet a technical terminology used in the glass industry to describe processed crushed recycled glass after separating and eliminating all impurities including ferrous and non-ferrous metal, plastic, paper & organic wastes, ceramics, stones & porcelain and segregated by colour. The processing is through an automated optic sorting machinery system. The company produces five variations of colour using batch processing system and are flint(clear), green, amber, mix green(a mix of clear, amber, other assorted colours and predominantly green), mix amber(a mix of clear, green, other assorted colours and predominantly amber). These variations are based on the current requirements of the existing customer’s, where as total elimination of all impurities is a fundamental requirement for all variations . The glass manufacturers also call the product as furnace ready cullet, and they can use up-to 50% in substitute of virgin material in making clear glass, up-to 60% as substitute of virgin material in making green glass and 70%-85% in making amber glass or darker shades of green(amber/green). In comparison European glass manufacturers use over 70% of recycled glass consistently in their manufacturing process due to the systematic organised network of collection, recycling and processing facilities established by the local authorities along with the glass processers and glass manufacturers. The first automated glass recycling and processing facility in Australia was commissioned in 2015, a partnership with the State Government, glass processor and glass manufacturer all three parties investing and supporting the project. It is imperative that without the support and assistance from the local government authorities this business is not commercially sustainable. Glass manufacturers using glass cullet saves on the energy cost, as it requires 40% less energy to melt glass cullet than melting virgin materials using silica sand, soda ash, limestone, potash feldspar, etc. therefore for each 10tons of glass cullet usage the overall energy costs reduces by 2% which is a significant cost savings. The furnace melting capacity proportionately increases with the usage of glass cullet which reduces the overall cost per ton of the melted glass. The environmental benefits are substantial reducing carbon emission on lower fuel consumption to eliminating waste accumulating in the landfills, which is in the direction given by the Government of UAE in line with the 2021 national agenda.
Customers Glass manufacturers are segregated into two distinctive groups one container glass manufacturers (glass bottles & jars) and the other float glass manufacturers. Though glass cullet can be used by both types of manufacturers, it’s the container glass manufacturers that predominantly use glass cullet worldwide due to limited availability and price and cost factors, which is the market segment for the company. The company does not have any direct competitors other than the indirect competition derived from the cost and free availability of virgin materials for industries to use. Glass recycling is in its initial stage within UAE and is being developed and expanded by Random Global giving them a total competitive advantage over any potential competitors in the future which at this stage is very unlikely due to the complexities involved in glass recycling.