Turning trash into cash has been a big business in Bahrain for the Gulf state’s recycling companies.
The country’s recycling industry has grown over the years, adding tens of millions of dollars to the economy.
But a slump in oil prices has hit the business, as commodities have become cheaper, reducing the demand for recycled metal, plastic, paper and glass.
It’s become cheaper for companies to buy new raw materials rather than invest in recyclable goods.
The recycling industry in Bahrain includes small outlets as well as large factories buying scrap metals such as aluminium, copper, iron, and brass, as well as cardboard and paper.
The scrap is recycled to a compressed stage and exported to countries such as India, Pakistan, China and Japan, where it is processed further.
Now, recyclers say they’re feeling the pinch.
“The way that we have been affected with the prices of oil in the world is that productivity has reduced world-wide and as such the demand for scrap is less. The quantity that we have can always have a buyer, but as a result of the lower demand, the price has really, really gone down over the past few years,” said Ali Al-Saad of Crown Industries.
Saad said his company’s turnover used to be more than 10 million Bahraini dinars ($26.5 million), but sales have now gone down by 35-40 percent.
Recycling company Crown Industries processes all types of metals, plastic and paper which is then exported to Asian markets.
Another recycling factory feeling the effect of the oil slump is Al Majid Plastic and Recycling Factory. It started its operations 1985, and now processes and exports recyclable materials to China, Saudi Arabia, India and Pakistan.
“For us Bahrain here, we have between 1.8 million, its going to jump to 2 million tonnes of refuse every year dumped in the ground,” said its founder and managing director, Hameed Al Majid.
“Losses we have, almost an impact of 40 percent,” he added.
Oil has fallen almost 75 percent since mid-2014 as global crude output exceeded demand by 1-2 million barrels daily. China’s economy has hit the lowest growth in a generation, further limiting demand for oil.
