NACE 38.3 – Materials Recovery | Public Tenders

Definition: NACE 38.3 covers the mechanical, thermal or chemical processing of waste into secondary raw materials as well as the trade in scrap materials. It includes sorting plants for packaging waste, scrap trading and processing, paper recovery, glass recycling, plastics granulation and the processing of waste electrical and electronic equipment (WEEE).

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 38.3 cover?

NACE 38.3 (Materials recovery) classifies companies that transform waste into usable secondary raw materials — a high-growth area driven by the circular economy, with increasing public tender volumes.

Group 38.3 within Section E and Division 38 is divided into two classes:

Public contracting authorities under NACE 38.3 are municipal waste management operators, special-purpose waste management associations and dual systems (licensors for packaging recycling) that tender recovery services or procure sorting plant capacity.

Public Tenders: Scope of NACE 38.3

Municipal collection and recovery of recyclables is closely linked to public procurement through the Closed Substance Cycle Waste Management Act and the Packaging Ordinance — recovery contracts and sorting plant services are regularly tendered.

Typical contract types

• Sorting services for LVP: Tendering of sorting of lightweight packaging waste (yellow bin/sack) by dual systems or municipal örE; sorting capacity in tonnes/year, sorting qualities per DIN SPEC 91235
• Paper recovery: Off-take and recovery of municipally collected waste paper; revenue-sharing or fixed-price models; market-price adjustment clauses
• Glass recovery: Acceptance and processing of waste glass (container glass, flat glass) from municipal container locations
• Metal scrap processing: Recovery of scrap from bulky waste, recycling centres, municipal construction sites; dismantling and pollutant removal from end-of-life vehicles (ELV)
• Waste electrical equipment disposal (WEEE): Collection and initial treatment of waste electrical equipment under ElektroG (Germany) / WEEE Directive; tendering through municipal collection points
• Plastics recovery: Processing of plastic fractions into regranulate; increasing demand for high-grade mechanical and chemical recycling pathways
• Sorting plant construction and extension: Construction and equipment tenders for municipal or inter-municipal sorting facilities

Thresholds and procedure types

Recovery contracts for municipal waste streams regularly exceed EU thresholds depending on waste volume and duration. For service contracts, EUR 221,000 applies (classical contracting authorities). The open procedure is standard; for complex technical specifications (sorting qualities, process technology), the negotiated procedure is used.

Relevant CPV codes for NACE 38.3

CPV codes are the key to tender searches in recycling and secondary raw materials on TED and national procurement platforms.

Current tenders can be found on TED (Tenders Electronic Daily) and on national procurement platforms and the procurement portals of dual systems.

Who is NACE 38.3 relevant for in public procurement?

Public contracting authorities

Municipalities and districts as public-law waste disposal bodies (örE) tender recovery services for municipally collected recyclables. The dual systems (Green Dot, RECLAY, INTERSEROH and others) tender sorting plant services and recovery capacity for packaging waste — they are private-law entities but functionally part of the public waste management system. Where there is joint coordination with örE, procurement law requirements may apply.

Companies and bidders

• Authorisation: Certification as a specialist waste management company (Efb) for the respective waste types; permits for storage and treatment facilities under BImSchG
• Technical capacity: Evidence of available sorting plant or processing capacity; plant location and logistics concept
• Sorting qualities and output specifications: Binding minimum sorting qualities per DIN SPEC 91235 apply for LVP sorting plants; EN standards apply for waste paper (CEPI classes)
• Certifications: ISO 14001 (environmental management), Efb certification; specific certification obligations apply to WEEE initial treatment under ElektroG

NACE 38.3 in context: Section E and the circular economy

NACE 38.3 is the link between waste management and the raw materials industry — recycling companies create secondary raw materials from waste for industry.

• NACE E – Water supply, sewerage, waste: Parent section
• NACE 38 – Waste collection, treatment and disposal: Parent division
• NACE 38.1 – Waste collection: Refuse collection, separate collection
• NACE 38.2 – Waste treatment and disposal: Incineration, landfill
• NACE 39.0 – Remediation activities: Soil remediation, contaminated sites

Frequently asked questions on NACE 38.3 and public tenders

Must recovery contracts for municipal recyclables be tendered?
Yes, provided the contract values exceed the thresholds and no in-house privilege applies. Even revenue models (the contractor pays for the raw material) constitute contracts with economic value that may fall under procurement law — case law on revenue contracts is nuanced.

What is the difference between recovery and disposal in the procurement context?
Recovery (recycling, energy recovery) has priority over disposal (landfill) under the waste hierarchy (§ 6 KrWG). Under procurement law, both service types are subject to tendering when thresholds are reached; the CPV codes differ.

How do I find current recycling and recovery tenders?
On TED by CPV search: 90514000 (recycling services). Sorting plant tenders by dual systems are often published directly on their procurement portals or announced through the bidder portals of waste management associations.

Last updated: January 2026
All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.