South Africa’s recycling sector has long been framed around waste collection and diversion. But according to Steffen Schröder, managing director of Reclite SA, that mindset limits both sustainability and scale.
Steffen Schröder, managing director of Reclite SA
“Waste gets value from being a raw material,” he says. “We work from the end product, what people want to buy, all the way back to the consumer.”This manufacturing mindset has allowed Reclite SA to influence market dynamics rather than simply respond to them. “We are a manufacturer. We are reacting to and changing the market dynamics,” Schröder notes. “We haven’t had price increases because of that position; we are sellers of products, not just processors of waste.”
Waste as a resource, but not a given
Unlike traditional manufacturers, Reclite SA does not start with consistent, virgin raw materials. Instead, it deals with variability, contamination and uncertainty, which Schröder likens to mining. “We see waste as a mining process,” he explains. “The quality of the ‘ore’ means there are differing values. Waste doesn’t have value; it has value potential. If it’s not beneficial, then it’s just a waste.” That distinction has major implications. The quality of the end product, Schröder says, is directly linked to the quality of the waste coming in. “We have the power to dictate prices based on cleaner separation,” he explains, “and to refuse material based on contaminants.” Rather than buying raw materials and hoping the numbers work, Reclite SA works in reverse. “We look at the raw material after processing, then we look at the market, and then supply and demand, incoming waste and outgoing products,” Schröder says. “We have stockpiles, not unlike the supply chains of manufacturers using virgin material.” The risk is high. “It’s maybe one in ten solutions that succeeds,” he admits. But those successes help stabilise the business. “Our products in the market help us keep our service costs down.”Research and development as a survival tool
Steffen Schröder and Dr Dominic Vooght, research and development engineer at Reclite SA. Part of Reclite’s strategy is relying on the expertise of their partners
R&D at Reclite SA is not driven by assumptions or trends. “We only go forth on true information,” he explains. “We interrogate research. We look at what people think and feel, and then we look at the facts and figures.”
Failure is treated as part of the process. “We aren’t afraid of failing,” Schröder says. “If something is wrong, then stop and start from scratch.” Importantly, efficiency gains do not translate into job losses.“When we reduce costs, we usually end up employing more people,” he notes. “If you drive the circular economy purely socially, there’s a missing sustainability link. Growth is through jobs.”For Schröder, the circular economy cannot be one-dimensional. “It has to be social, sustainable and economical aspect,” he says. “It’s not either-or.” Reclite SA’s progress has also relied heavily on collaboration. “We can’t see or know everything,” Schröder says. “We’re all good at something. Collaborating brings more ideas, more data and better solutions.” These partnerships range from universities and think tanks to other companies with dedicated research capacity. Producer Responsibility Organisations (PROs), Schröder adds, play a critical role. “PROs like Circular Energy are very collaborative,” he says, alongside growing SMMEs that bring agility and fresh thinking. One practical example came from machine design. “Something as simple as seals in a machine came from collaborative research,” he notes ,a reminder that innovation is often incremental rather than revolutionary.
Custom machinery built for purpose
Glass is a key industry for Reclite who have managed to turn a negative waste stream into a positive one
As a closing argument Schröder says: “We plan that in the next 10 years we will have the opportunity to industrialise these new circular solutions and create a true meaningful circular economy with an overall value add to the environment, industry and in turn society as a whole.”