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How wastes generate revenue

Sergei Lazarev, CEO of EcoStar Factoring LLC (resident of TOD Nadezhdinskaya), told EastRussia about how to do business on waste processing

How wastes generate revenue
Special project TORA and Free Port
Sergey Lazarev, General Director of EcoStar Technology LLCDue to changes in legislation, recycling in Russia is becoming an attractive industry for investors. The institute of regional operators for the treatment of municipal solid waste is introduced, as well as a standard for the disposal of waste from the use of goods for producers and importers. The details of EastRussia told Sergey Lazarev, General Director of EcoStar Factory LLC, which implements a project for processing industrial waste in the Nadezhdinskaya ASEZ (Primorsky Territory).

- Sergey Y., your company on the market from 2009 year. Are there any changes in the industry?
- Earlier I would have estimated the investments in such a business as attractive, but risky. But the state is now creating prerequisites for increasing the profitability of the industry. In the 2016 year, the law "On production and consumption wastes" came into force, and a number of subordinate regulations were issued. On this basis, the development of the industry will now proceed along two vectors. First, it is the definition of regional operators that will take on the function of managing solid municipal waste in the regions, from collection to disposal or placement on their landfill.

Secondly, waste processing will be stimulated, which is included in the list of expanded responsibilities of producers and importers. For each type of goods produced or imported into the territory of the Russian Federation and included in the specified list, the government established an annual recycling standard as a percentage of the volume of production (or imports). For this volume, producers and importers are obliged either to pay an environmental fee to the state, or to conclude an agreement with a processor to organize the collection and utilization of the amount of a similar product established by the norm. Since the rates of waste recyclers are lower than the rates of environmental charges, it will be profitable for producers and importers to pay the processor, not the state. At the same time, the recycling standard will grow annually. Already, the standards for 2017 year are higher than the norms of 2016 year. Revision of the standards is possible at least once a year, and in the next 5-10 years can reach 70-80% for certain groups of goods. Thus, the waste reprocessors will have additional stable resources for development. The most important is that in the industry there will be clear to investors mechanisms that will minimize possible risks.

- What is the path of your processing company in the Far East?
- For eight years, we are moving along the second vector. At the moment, a decision has been made to substantially expand the industrial base for the deep processing of industrial waste (by the way, all the waste processed by us is included in the same list of extended liability of producers and importers). In 2015, our company, EkoStar Factory LLC, became a resident of the Nadezhdinskaya Tor (PRD) in Primorye. For the construction of the plant has already been allocated land area 7,2 ha. We already have a constant pool of customers throughout the Far East at the expense of legal entities. After the introduction of expanded responsibility of producers and importers, the volume of waste processing and recycling will increase dramatically, and therefore we plan to enter new markets for recycled materials. Recycling tires gives rubber crumb, which is used for laying safety coatings on sports and playgrounds. There is a high demand for metals in the Asian markets, which we receive when processing electrical equipment and batteries. And the recycling of plastic waste can replace the primary raw material in packaging production by 95%.

- Why Primorye was chosen as a site for such an object?
- Firstly, a short transport arm from the ports of Primorye to Asia makes us attractive to buyers in China, Korea, India and Japan. China, by the way, is the world's largest importer of recyclables with stable demand and prices. According to the agency "EXCAR", in the APR countries demand is expected to increase.

Secondly, these are significant tax and non-tax preferences of the resident of the TOP. Thirdly, the necessary infrastructure is built at the expense of public funds, which significantly reduces the investment burden.

- At what stage is your project now?
- Design has been started. Our company invests in the first place the project, it is a tire recycling complex, and plans to launch it in 2018 year. It is also planned to organize complexes for the processing of electrical equipment and batteries. The launch of these queues will require an additional order of 1,8 billion rubles. We are currently looking for investors for the final implementation of the project.

In the photo: the enterprise of the resident of the TOR "Nadezhdinskaya" LLC "EcoStar" Factory "
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