Market and Competitors
Waste Glass is a material unlike any other recyclable materials due to the high costs incurred, as well as material handling challenges. Processing waste glass requires high-end optic sorting systems and technical expertise to match the requirements of its customers, the glass manufacturers. Manual or semi-automated systems are not effective, thereby losing customers and incurring high operating costs.
With this inherent factor, glass recycling has not developed to the extent that consumers of glassware actually think it does. In most countries, 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 is relatively cheaper for glass manufacturers to use virgin material, which totally eliminates 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.
With this inherent factor, glass recycling has not developed to the extent that consumers of glassware actually think it does. In most countries, 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 is relatively cheaper for glass manufacturers to use virgin material, which totally eliminates 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:
These variations are based on the current requirements of the existing customers, where total elimination of all impurities is a fundamental requirement for all variations. The glass manufacturers also call the product as furnace ready cullet, which can be used:
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, which was a partnership with the State Government, a glass processor and a glass manufacturer, whereby all three parties invested and supported the project. Our initiative aims to mirror this success. 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 such as silica sand, soda ash, limestone, potash feldspar, etc.
Therefore for each 10 tons of glass cullet usage the overall energy costs reduces by 2% which is a significant cost saving. The furnace melting capacity proportionately increases with the usage of glass cullet which in turn, 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 the United Arab Emirates in line with the 2021 national agenda.
The company produces five variations of colour using batch processing system:
- Flint (clear)
- Green
- Amber
- Mix green (mix of clear, amber, other assorted colours and predominantly green)
- Mix amber (mix of clear, green, other assorted colours and predominantly amber)
These variations are based on the current requirements of the existing customers, where total elimination of all impurities is a fundamental requirement for all variations. The glass manufacturers also call the product as furnace ready cullet, which can be used:
- Up to 50% in substitute of virgin material in making clear glass
- Up to 60% in substitute of virgin material in making green glass
- Up to 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, which was a partnership with the State Government, a glass processor and a glass manufacturer, whereby all three parties invested and supported the project. Our initiative aims to mirror this success. 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 such as silica sand, soda ash, limestone, potash feldspar, etc.
Therefore for each 10 tons of glass cullet usage the overall energy costs reduces by 2% which is a significant cost saving. The furnace melting capacity proportionately increases with the usage of glass cullet which in turn, 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 the United Arab Emirates 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 is the container glass manufacturers that predominantly use glass cullet worldwide due to limited availability, price and cost factors, which is the main 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 the 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.