Most people think recycling is as good as never having consumed in the first place.
Not everything collected through recycling must be "recycled" in the traditional sense. It should be called "landfill diversion", not recycling.
Is it incompatible? The article makes it sounds like a clear win for the city, and a sometimes-win for the plant:
All of this may mean that at any given moment, recycling can be anything from highly profitable to a struggle to cover costs. If we were to shut these facilities down during periods where they weren't profitable, however, we'd be wasting infrastructure and expertise we'd want when costs shift in the other direction.
The city does pay a tipping fee to get rid of the materials, but it's less than what it would pay to landfill them—plus it avoids the cost of transporting everything to the landfill.
The city even has a chance to get some of its tipping fee back. When recycled materials are sufficiently valuable, Sims shares a percentage of the profits back with the government. During periods where these materials are priced low, the company gets to keep any profits it can eke out.
The net result is that the city can benefit when recycled materials are valuable. And when raw material prices are low, it's still profitable to keep the facility operating.
But it requires ceramics that are resistant to heat, pressure, and chemical erosion, which turns out to be the usual 'pick two' situation.
I had heard someone was working on composite ceramics to deal with this (heat and pressure resistant bulk, enameled with heat and chemical resistant coatings) but have heard nothing since.
So far they only seem to be price competitive in hazardous waste situations.
I believe Danon yogurt made a similar decision when they went to thinner plastic on their single serving cups.
I think Method has since figured out a recyclable solution so their refill bags are recyclable but still made of next to nothing.
In the meantime, recycling technology is still in relative infancy, so while it may not make business sense now, it may be essential in the future for the recovery of certain materials. And, like solar before it, the only way to get it to a useful enough efficiency for that future use is to suffer through adopting it while it's inefficient.
Of particular interest was the bit on plastic bags (edit: which are largely considered “contamination” in the USA) - the worker complained that they put them into a dedicated stream to bale and sell, “but no one is buying them”.
Economics wrote the truth on the wall for these “recyclable” materials back in 2015 (or before). The world is just now catching up to the reality that reducing is the only real way to improve the situation we’re in - recycling should be a last resort.