South Holland district council in Lincolnshire is to receive income for its dry recyclables for the first time under a new three year MRF contract with Casepak.
Under the contract, which comes into effect from April 1 2012, dry recyclables collected by the council at the kerbside will be sent to Casepaks Leicester materials recycling facility (MRF) where they will be sorted, baled and then sold on.
The deal will see the council receive an income for its recyclables for the first time as it had previously paid to send its materials elsewhere.
Councillor Roger Gambba-Jones, portfolio holder for waste management at South Holland district council, said: This deal will bring in much-needed revenue, to not only continue to provide and improve the refuse and recycling services our taxpayers value so highly, but to also support and sustain our other council services.
Casepak was chosen ahead of five other bidders following a competitive procurement process. The council has the option to extend the contract for a further three years at the end of the initial deal.
It is hoped that the income from the contract will encourage residents to increase the amount they recycle. The districts current recycling rate sits at 34%.
Cllr Gambba-Jones said: I sincerely hope that, having seen how recycling can make such and valuable contribution to council services, residents will work with us to increase even further the amount of household waste they recycle.
Casepak
Under the contract Casepak is expected to handle up to 9,500 tonnes of dry recyclables from the councils kerbside collection service including: paper, cardboard, plastics, cans, textiles and mixed glass.
Casepak is jointly owned by G.A.E Smith Holdings and SCA Recycling UK Ltd. SCA has a 50% share in the Leicester MRF however this looks set to pass to paper company DS Smith following its proposed acquisition of SCAs packaging business (see letsrecycle.com story).
The Leicester MRF was officially opened by recycling minister Lord Taylor last month (see letsrecycle.com story). The 21 million facility, on Braunstone Industrial Park, has the capacity to process 150,000 tonnes-a-year of commingled dry recyclables.
Mark Smith, Casepaks joint managing director said: Were delighted to have been awarded this contract. Weve installed the best technology here at Casepak and it is already proving popular. It enables us to be both competitive and flexible in our approach and in this instance it has helped us to make significant savings for South Holland District Council.
Walsall
In May 2011 Casepak and SCA was awarded a joint contract by Walsall metropolitan borough council (see letsrecycle.com story) to sort recyclable material collected from households in the area, as well as from recycling centres and bring banks.
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