Waste management industry Waste giant Remondis buys the Green Dot

Waste management industry Waste giant Remondis buys the Green Dot

Waste management industry Waste giant Remondis buys the Green Dot

Germany’s largest waste disposal company buys the Green Dot. One hundred percent of the company Duales System Deutschland (DSD) was acquired, announced on Thursday in Lünen. The previous owner was a British group of investors, the purchase price was not known. DSD holds the trademark rights to the Grüner Punkt recycling symbol. The antitrust authorities have yet to give the go-ahead for the takeover to be valid.

The Cologne-based company is the largest of nine dual systems that handle the disposal and recycling of sales packaging for trade and industry. The name dual system originally meant that there is a second system organized by the private sector in addition to the municipal waste disposal company.

DSD was founded in 1991 as a self-help organization in the private sector and has long been a monopoly. After the intervention of 2001, competitors emerged. In 2016, DSD achieved a turnover of 561 million euros, the number of employees was last at 442. The company regulates the collection of around a third of the packaging waste that ends up in yellow bins or yellow bags in Germany. However, the market share has decreased in recent years as the company lost major customers.

DSD does not collect the waste itself, but places orders with garbage disposal companies and sorting plants. So if DSD commissions Remondis garbage disposal in the future, the job would remain in-house, so to speak. A Remondis spokesman pointed out, however, that you cannot give preference to your own subsidiaries when collecting the goods, but always have to accept the best offer. Competitor Alba already has its own dual system with Interseroh. The Berlin group is much smaller than Remondis.

Representatives of municipal and smaller private waste companies are critical of the merger – they warn of an industry giant and less competition in the waste disposal market. The antitrust authorities should prevent such a “wedding of the giants”, demands Eric Rehbock from the Federal Association for Secondary Raw Materials and Disposal (bvse).

In 2017, Remondis increased its sales by 1.2 billion euros to 7.3 billion euros. The family company is the market leader by a large margin – the number two in the industry, Alba, only achieved 1.8 billion euros. With around 33,000 employees, it is involved in classic refuse collection, disposes of commercial waste and operates sorting and recycling systems.

The recycling of plastic is a big political issue, said Remondis boss Ludger Rethmann. The market prospects are good, DSD is opening up “completely new opportunities” for its group of companies.

The dual systems have been under pressure for years because black sheep on the market calculate the quantities of waste and thus reduce costs – in fact, there is more packaging waste in the bins and bags than reported. This harms other dual systems, as costs for waste collection and sorting are distributed across all systems. A new authority, which will start its work in January, is supposed to bring more transparency and eliminate these problems – that is one reason for Remondis’ optimism. With the purchase of DSD, the company is now suddenly the market leader for dual systems as well.