Novelis reduces UBC demand
resource.co | 20 February 2012

The UK's largest aluminium recycler, Novelis, today reported that it was temporarily reducing its intake of used beverage cans (UBCs).

A short-term restriction of UBC spot purchases is anticipated to have an impact on certain parts of the UK’s supply chain, though according to Andy Doran, National Manager for Novelis, this will not affect material from contracted customers. He added that this situation ‘is likely to remain the case for several weeks’ while the company manages its inventory of UBC.

Although global and domestic demand for aluminium has been reportedly strong, seasonal variations in both demand and supply has resulted in ‘larger than normal amounts of feedstock accumulating’ at Novelis’ UK plant in Latchford, near Warrington. This has been partly due to a surge in supply of UBCs following the Christmas holiday period. The company expects to resume normal levels of intake in the Spring.

In order to manage growth in it’s UK reprocessing capacity, Novelis has revealed plans for a further $2.5 Million (£1.6 M) capital investment in the Latchford Recycling plant. Mr Doran added: “This investment will allow us to upgrade our ability to consume more used beverage containers. Novelis is committed to growing recycling further over the long term. We have made a global commitment to increase our already extensive use of recycled aluminium to 80 per cent of all aluminium output by 2020.”

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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?

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There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.