Chase Plastics Publishes Cost Comparison Guide Highlighting True Cost of Plastic Packaging Tax

Chase Plastics has launched a comprehensive Cost Comparison Guide aimed at UK packaging manufacturers currently facing rising costs under the Plastic Packaging Tax (PPT). Highlighting the breakeven points for incorporating recycled content, the guide serves as a strategic tool for businesses looking to transition toward a circular economy while avoiding the increasing financial penalties associated with virgin polymer use.

Based in Suffolk, Chase Plastics is one of the UK’s longest established plastic recyclers and manufacturers of recycled polythene pellets and compounds. Committed to the highest standards of quality and service their comprehensive experience in both plastics recycling and film manufacture provides invaluable know-how when it comes to meeting their customers’ requirements. As a supply partner to leading flexible and rigid packaging manufacturers, construction film manufacturers, rigid product producers and refuse sack manufacturers, Chase Plastics aims to provide the standards of service and consistency comparable with the major suppliers of virgin polymers.

Operating from their RecyClass accredited factory, Chase Plastics regularly invests in recycling machinery and production technologies to enable the manufacture and continual development of the RECOTHENE™ range of post-consumer recycled polythene pellets. RECOTHENE^TM rPE, which can be manufactured to suit a customer’s precise requirements, is engineered to ensure the highest levels of processability and product quality.

Key to running a highly efficient extrusion operation is a reliable supply of highly consistent feedstock. Chase Plastics understands the importance of uniform plastic recyclate in the manufacture of polythene films that contain recycled content. They know that high quality recyclate (which has fewer impurities) runs better throughout the manufacturing process and performs better within the finished product. They understand that, as with virgin materials, the parameters of recycled polyethylene such as material composition, tensile strength, density and melt flow rate all have to be of a consistent quality to ensure there is no impact on finished product integrity.

Thanks to 60+ years of experience, Chase Plastics can overcome the inherent inconsistency in recycled materials to deliver uniform recycled polythene pellets. RECOTHENE^TM rPE which is batch blended to ensure each batch consists of homogenous pellets of the highest quality, is compatible with all extrusion machinery from mono lines with limited blending capability to advanced multi-layer co-extrusion machinery.

Since the introduction of the Plastic Packaging Tax in April 2022, several manufacturers have adapted their products to incorporate at least 30% recycled content to avoid incurring the tax which rises to £228.82 per tonne from April 2026.  Prior to the PPT, using recycled content was an ambition for businesses working towards sustainable manufacturing but was often considered technically challenging. Since then, reformulating packaging products to incorporate recycled content has been a rewarding experience for many but some manufacturers have yet to embrace the use of recycled content to mitigate the tax.

Reflecting their concern that the PPT is impacting the competitiveness of these UK polythene packaging manufacturers, Chase Plastics has published a useful Cost Comparison Guide. This handy guide highlights the actual cost of the PPT on the 300kg of virgin material used for every tonne of polythene packaging made without the required recycled content.

Chase Plastics has a genuine concern that UK manufacturers not incorporating recycled content are risking their competitiveness through not embracing the opportunity presented by RECOTHENE^TM rPE.  The company also highlights that in addition to the relative price disadvantage created by paying the tax, 100% virgin polymer products do not appeal to many end users seeking to embrace the circular economy through the use of more sustainable packaging.

“Understanding how the costs of a virgin polymer formulation compare to one with 30% recycled content is key to protecting margins and competitiveness, especially with the PPT rising again on 1^st April.” says David Harris, CEO of Chase Plastics. “Our Cost Comparison Guide includes a costing ready reckoner which highlights the breakeven price points for the recycled content required in order to avoid the PPT and appreciably reduce overall blend costs.” 

He continues, “The PPT was designed to provide an economic incentive for the use of recycled content but the financial incentive has not yet been realised by all manufacturers. As we approach the 5^th year of the tax, it is essential that UK based polythene packaging manufacturers fully appreciate the cost of the PPT.  To  support this, we are publishing a cost comparison guide to highlight the savings possible through the use of our RECOTHENE^TM  rPE products.  We hope this straightforward guide will encourage greater use of recycled content which, in turn, contributes to the Circular Economy.”

Copies of the Cost Comparison Guide are available upon request from Chase Plastics via sales@chase-plastics.co.uk or by calling 01842 810751.

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