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Valpak contemplates divestment of glass collection service for pubs and hotels

Valpak, the UK’s largest packaging waste compliance scheme, has restructured the way it runs its glass recycling division and is believed to be looking to sell off its free collection service for licensed premises.

The organisation has confirmed that its glass collection work with local authorities, run under the Recycle-more-glass initiative, has now been transferred to a direct Valpak operation rather than being carried out through Recycle-more-glass. However, the Recycle-more-glass free collection service for pubs, clubs and hotels is now under close scrutiny by Valpak and could be sold off or transferred to another company.

Earlier this year the service for licensed premises celebrated the collection of 50,000 tonnes of glass. But, this has been at an enormous cost, thought to be in the order of 50-80 per tonne, and with low prices for PRNs – packaging waste recovery notes – the compliance scheme is finding it hard to make the figures stand up.

If a sale or divestment of the licensed premises glass operation is confirmed, it will continue a policy change implemented by Jonson Cox who became chief executive of the compliance scheme last year.

Catalyst
Mr Cox said at the turn of the year: “We are not investing in MRFs and we are not going to be an asset owning business. We have a skilled role as purchaser, broker, advisor, catalyst, and are not a physical asset owning company. Our role is to use and develop the market system. We want to work with the waste management industry and the reprocessing industry.”

It is not known which company or organisation might take on the licensed premises operation. Interest could come from within the glass sector itself from companies such as Berryman or from the waste management sector.

Municipal
On the municipal side, Valpak-sponsored glass collection work is still to gain momentum although during 2003 the tonnages collected should increase.

In Peterborough and surrounding local authorities including East Northamptonshire, 10,000 properties will receive a glass collection service from May 2003. In Horsham, Sussex a small pilot scheme is already underway with glass going to the Days aggregate business near Crawley.

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