As revealed by letsrecycle.com, DS Smith began a “strategic review” of its UK recycling operations in May (see letsrecycle.com story).
The consultation will not impact the company’s paper making operations at Kemsley, but some of its recycling sites could be sold off rather than closed, industry sources suggest. Sites at Bolton, Keynsham, Leeds, Willenhall and Caerphilly could find a buyer. However, the company’s Uxbridge site is thought likely to close.
While discussions are said to be ongoing, nothing has been announced as of yet. However, it is understood the company could sell their recycling depots to waste management companies or even to existing merchants. Sales are expected to include the baling equipment and other infrastructure.
Waste management firms such as Veolia who have retail contracts and Biffa who also handle large volumes of paper could be contenders to buy one or more of the sites.
When asked about the potential for some sites to be sold rather than closed, a spokesperson for DS Smith decline to comment, saying there is “nothing to add” at the moment.
Retail
DS Smith is at the centre of the UK cardboard recycling market as it supplies major users of cardboard packaging, including online giant Amazon.
The depots could be useful for waste firms servicing retail and commercial contracts as well as local authorities.
To make cardboard at its Kemsley plant, DS Smith sources material through the recycling facilities from both domestic, retail and commercial sources. With retail volumes often now coming direct from retail hubs, the depots are thought to be less important to the papermaking business.
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