Platform economy opens market for recycled paper via online exchange

Thomas Reiner | 08.05.2019

The platform economy, as a central element of digital transformation, makes markets transparent and conveniently and efficiently brings supply and demand together for both sides. Online exchanges are an expression of this disruptive development, which is gradually conquering markets.

One of the most recent examples is the market for recycled paper. Here a joint venture will get things moving, which has been registered to the EU Competition Authority on the 25th of January.

Behind this online exchange for recycled paper are two industry heavyweights:

• On the one hand, the Weig Group as one of the leading European manufacturers of recycled cardboard (and packaging). The group participates with its daughter, the waste paper marketer and disposer, Nord-Westdeutsche Papierrohstoff GmbH & Co. KG (NWD) with 49%.
• The second partner is Greencycle, a subsidiary of the Schwarz Group, to which the discount giant Lidl and Kaufland belong. Greencycle will hold 51% of the joint venture.

The purpose of the joint venture, according to the company, is to make recycling activities more effective and to further develop trading in paper. There are no intentions to merge certain divisions of the two groups.

The packaging industry will eagerly follow the move.

Stats:
According to the specialist publication “Euwid Recycling”, NWD handles around 900,000 tonnes of recycled paper per year from trade, industry, municipalities and dual systems.
According to earlier data, the Schwarz Group subsidiary Greencycle, which is responsible for recycling and disposal, handles more than 500,000 tonnes of recycled paper per year.