| DIAB manufactures core materials based on various polymers, including recyclable PET and a PVC-based material that is not recyclable. In 2018–2019, industry expectations pointed toward a sharp increase in PET demand, particularly driven by the wind energy sector. This optimism triggered significant capacity expansions across the market. However, the projected demand growth failed to materialize. Today, the main market for PET is the Chinese wind energy sector, which is characterized by intense price competition—an environment in which DIAB currently lacks competitiveness.
Consequently, DIAB has shifted its strategic focus toward its PVC-based core material. This product is positioned in higher-value segments and is widely used in the marine industry, for example in the construction of hulls and decks. While commercially attractive and in strong demand, the material presents a significant sustainability challenge: it is not recyclable.
Production waste is currently primarily sent for incineration. However, incineration capacity is limited and expected to face further regulatory restrictions under upcoming legislation. Despite sustained efforts over time, DIAB has not identified a viable long-term or sustainable solution for managing this waste stream. Furthermore, the material is not expected to become circular within the foreseeable future.
DIAB now faces a strategic crossroads. The company markets a non-recyclable product with strong and growing demand, yet its production generates waste that is likely to become increasingly difficult—both economically and legally—to manage.
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