What you need for a Recycled paper business

In this article, we discuss the various logistics and requirements for starting a business in recycled paper. Furthermore, we also discuss the merits of doing so.

The paper we use is largely biodegradable trash that decomposes quickly with the passage of time. There has been a significant increase in the use of paper in recent years. 

We can clearly see papers almost wherever we walk. Paper is widely used and is becoming more so over time. 

Newspapers, books, text copy, pamphlets, posters, magazine pages, calendars, and other basic uses of paper are only a few examples.

The global paper market is enormous, with billions of dollars at stake. The pulp from trees is used to make paper. Every year, 398, 975 thousand tonnes of paper are produced as of 2011.

If you want to create your own paper recycling factory, read this article all the way to the conclusion to learn all you need to know about profit margins and the cost of starting up a paper recycling facility.

China is the world’s leading manufacturer of paper. The United States is ranked second, and Japan is ranked third. The paper production sector is enormous, with a yearly revenue of billions of dollars.

What are the resources required to open a paper recycle plant

The following resources are a crucial requirement in order to start a paper recycling plant:

  • Land Space and Factory
  • Requirement of Resources
  • Required Official Permissions
  • Equipment for Recycling
  • Waste Paper Collection
  • Labour and Expert

How Paper is produced?

Wood pulp, fibrous plants, rice, water plants, stubbles, and other resources are used to make paper. 

Fibre is the most fundamental element needed to make paper, and it is an important part of the process. This pulp is mostly obtained from two sources.

The first is made of wood pulp, while the second is made of old recycled papers. The manufacturing of papers necessitated the felling of trees. 

In general, one tree yields 16.67 reams of paper, whereas 12 trees yield one tonne of paper. Every year, millions of trees are felled to generate such a large quantity of paper. 

The increased chopping down of trees has resulted in deforestation, which has resulted in increased global warming. To combat this, individuals are now focused on paper recycling.

Recycling Paper

Every country has embraced paper recycling in recent years in order to reduce the number of trees chopped down. 

Recycling not only protects trees from being chopped down, but it also lowers and reuses paper trash that would otherwise pollute the environment.

Recycling paper has a distinct benefit in that it is useful in a variety of ways. It takes roughly 5 litres of water to make one A4 sheet of paper. A tonne of paper recycled saves 26,500 litres of water, 682.5 litres of oil, and 17 trees.

Recycling Paper as a Business

The entire globe has invested a large amount of money in recycling paper waste as a result of such a successful strategy.

Earlier these recycling jobs were conducted by either government owned businesses or big recycling businesses but now even common man can own a paper recycling business.

The paper recycling industry is a thriving enterprise that pays off handsomely to its owners. Recycled paper is in high demand due to its low cost.

If one develops a strategy, implements it, and invests a reasonable quantity of money, one may expect a satisfactory return in a short period of time.

To create a business plan, you must first comprehend the fundamentals of recycling a business, including its requirements, investment, and return, among other things. 

Resources required to open a paper recycle plant

The following resources are a crucial requirement in order to start a paper recycling plant:

  • Land Space and Factory
  • Requirement of Resources
  • Required Official Permissions
  • Equipment for Recycling
  • Waste Paper Collection
  • Labour and Expert

We shall discuss these in more detail below.

Land Space and Factory

The first prerequisite is to have a location where you can recycle paper. If your home permits you to set up your factory, that’s okay; otherwise, you’ll need to find a suitable location. 

You can buy or rent the area depending on the size of your recycling operation. A minimum of 250 square feet should be available. 

Rooms for collecting paper trash, a clean room for storing recycled paper, a location to set up machinery, and so on should be built into the area.

Requirement of Resources

Everywhere, basic utilities are essential. You’ll need a constant standard power connection as well as a reliable water supply. 

You’ll need a lot of water for the paper recycling plant, so make sure you have it. Because you require a regular supply of waste paper for your recycling facility, your plant should not be too far away that transportation becomes a difficulty.

Required Official Permissions

Because you’re opening a recycling facility, you’ll need authorization from the appropriate authorities in your city. 

You must also pay taxes on your space if it is used for business purposes. The next step is business registration, followed by excise duty registration for tax payment. 

Because you’ll be using a lot of power, you’ll need special clearance. The last one is a water supply connection which you must definitely take as your water requirement will be huge.

Equipment for Recycling

To recycle paper, you’ll need certain common items like soap, cleaning supplies, bleaching powder, tanks, containers, machines, jets, and paper printers, among other things.

There are three different types of paper recycling machines. The first is a modest machine that can recycle 20 to 100 kg of paper every hour. 

The big machine recycles 100-500 kg of paper trash, while the medium machine recycles 75-250 kg of paper waste. You may purchase the equipment based on your needs and budget. 

Start with a tiny machine and work your way up to medium and large machines, since this will assist you comprehend the company supply and returns.

Waste Paper Collection

To gather waste paper, you can form a network with scrap collectors, paper waste owners, dumping grounds, and so on.

Labour and Expert

You’ll need at least one individual who is familiar with big machines and equipment as well as paper recycling. You’ll also need a few labourers to help the primary worker with the recycling.

Cost of setting up a recycling plant

The cost estimate provided below is in Indian money and is aimed at Indian readers. This business plan is also applicable to other nations such as South Africa, Australia, the United States, the United Kingdom, and Canada. 

The cost of the equipment is almost identical worldwide, as is the recycling procedure.

Renting or buying a home depends on the size of the home, which may be calculated. Renting a space or using one that you already own is a better alternative for getting started because it will save you money. 

It is not expensive to gather waste paper. Almost ten cents is wasted on one kilogramme of discarded paper.

Purchasing equipment is expensive, therefore it’s ideal to rent it on a monthly basis, which is easy to do if you have contacts. A recycling machine is an expensive purchase that should be made with care. 

Begin with a tiny machine, which costs around 65 thousand dollars, followed by a medium machine, which costs at least 15,000 dollars, and a big machine, which costs around 40,000 dollars.

The cost of hiring an expert technician and labour is $500 per month. You can also include the cost of electricity, water, transportation, and other expenses. 

For the first time, you’ll need at least $15,000 USD to get your business up and running. After that, you must spend at least $2,000 every month.


In this article, we discussed how recycling paper is a growing business as time passes, and the resources that are required for opening a paper recycling factory. 

Finally, we discussed the capital investment that would be required to get a paper recycling business up and running. 


How to boost the income revenue from the recycling paper business?

Making the most of recycled and waste paper is the greatest approach to enhance your return. Not all waste paper is filthy and worthless.

Certain types of paper, such as textbook paper, text copy paper, and magazine plastic coated paper, can be used to make paper plates. 

All you need is a machine that makes paper plates. You may easily produce 1000s of plates every day using this method, which can be sold at a premium price. 

A conventional paper plate costs Rs 10 per 100 pieces, whereas a standard plastic coated paper plate costs Rs 20-25 per 100 pieces.

Apart from this, you can also manufacture paper boxes that are durable and are made from standard and little hard paper. 

Boxes used to store sweets can also be manufactured as they are simple to manufacture and cost less in manufacturing but give profitable returns.

Which are some of the prominent paper recycling businesses?

The following mentioned are some of the most prominent paper recycling businesses.

  • The American Forest & Paper Association (AF&PA): The American Forest and Paper Group (AF&PA) is a national trade association for the forest products sector that represents all of the country’s paper-based product producers and promotes sustainable U.S. forest products in worldwide markets. Around 75% of paper-based products in the United States are made by AF&PA members.
  • Independent Waste Paper Processors Association (IWPPA): IWPPA is the UK’s trade organisation for enterprises in the paper product sector, and it was founded in 1975. There are 80 member firms in the organisation, with a combined annual sales of more than £2 billion. Over 2 million tonnes of recyclables are produced by the association’s members.
  • The Confederation of Paper Industries (CPI): With approximately 70 member firms, CPI is another trade group representing UK paper-based product makers and recyclers. The total annual turnover of CPI member firms is £6.5 billion.
  • European Recovered Paper Association (ERPA): ERPA is a European trade group that represents federations of recovered paper from around Europe. ERPA is made up of federations for paper recovery and recycling from Belgium, France, Germany, Hungary, Italy, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom, and Finland.

What are the Current Trends in Paper Recycling?

Although reduced worldwide pricing and issues connected with contamination during the curbside recycling process have had a detrimental influence on the sector, the paper recycling rate continues to increase. 

The expansion of e-commerce and home delivery has resulted in a surge in curbside OCC production, which is a beneficial trend. 

Paper is being used less for communication and more for packaging, resulting in a changing mix of materials being produced.


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