News in Brief 16/05/2014
Sarah Jones | 16 May 2014

Scotland proposes new scrap metal law

Scottish Parliament’s new Licensing Bill has proposed the laws regarding scrap metal should be tightened in a bid to reduce metal theft.

The proposed rules could ban cash transactions for scrap metal, as well as enforce metal dealers to keep records of their acquisitions, processes, and details of anyone who buys scrap metal from them.

The law follows on from a similar tightening of scrap metal law in England - which came into force in December 2013. This requires all site-based and mobile scrap dealers to hold licences in an attempt to clamp down on rogue traders. It also gives local authorities and police the power to revoke licences if they suspect a dealer of illegal activity.

Speaking about the Scottish Licensing Bill, Justice Secretary Kenny MacAskill said that “reducing metal theft by strengthening a licensing regime for scrap metal dealers” was part of his aim to “support and encourage legitimate businesses whilst protecting public health and safety and empowering our communities”.

Read the proposals for Scotland’s new Licensing Bill.

Novelis announces fiscal 2014 results

Aluminium rolling and recycling company Novelis announced that ‘strong operating performance’ led it to end the fiscal year on a positive note. Excluding certain tax-effected items, its net income was $75 million (£44.5 million).

Higher global shipments were the primary driver behind the four percent increase in adjusted EBITDA versus the prior year to $250 million (£148.6 million) in the fourth quarter of fiscal 2014.

Net sales for the year were $9.8 billion (£5.8 billion), which is flat compared to the prior year and results from higher shipments partially offset by a 10 percent decrease in average aluminum prices and lower conversion premiums.

"Fiscal 2014 was a transitional year for Novelis and we closed it on a strong note… While 2014 provided market challenges, particularly lower can sheet pricing and volatile market premiums for primary aluminum, we have positioned the company well for the future", said Phil Martens, President and Chief Executive Officer.

Read more about Novelis’ fiscal results for 2014.

On-farm AD fund for Northern Ireland farms

(L-R): Alex Colombini, Assured Asset Energy; Minister of the Environment Mark Durkan; and Gerry Keogh, Assured Asset Energy.

Renewable energy firm Assured Asset Energy Ltd (AAE) has launched a £27 million fund to finance up to 30 new on-farm anaerobic digestion plants (AD) in Northern Ireland.

It is hoped the fund will help process up to 450,000 tonnes of farm waste to produce biogas and generate clean renewable energy for up to 5,000 homes across the region.

It will also bring the region in line with England and Wales, where there are almost 100 AD plants, compared with just eight in Northern Ireland.

Environment Minister Mark H Durkan, who officially launched the fund said: “This fund will help more farmers to seize the benefits of this renewable technology which can help them make savings and reduce running costs in the longer term. Anaerobic digesters can also assist in reducing carbon emissions and help meet Executive Renewable Energy targets.

“I am a strong supporter of renewable energy and believe that initiatives such as this will be a welcome boost for the rural economy.”

A similar fund is already operating in England.

Read more about how farmers can utilise AD on site in Resource 76.

BIG Recycle reaches 8,000 sign ups

Portsmouth City Council has seen 8,000 people sign up for its recycling reward scheme, BIG Recycle, since its launch eight months ago.

The scheme offers rewards to residents who are recycling the right things and randomly selects 81 winners each month.

There have been over 500 winners so far receiving prizes of £250, or lovetoshop vouchers worth £75 and £25.

Approximately 3,896.19 tonnes of recycling have been collected since the BIG Recycle launched.

Paul Fielding, Assistant Head of Service for Environment, said: "Residents are really getting on board with the BIG Recycle. We are happy to see that so many are signing up and recycling correctly. Our aim is to achieve 15,000 people signed up and to increase our rate of recycling from 23 per cent to 30 per cent.”

Find out more about Portsmouth BIG Recycle.

MEP Linda McAvan supports UK beverage carton recycling

Labour MEP Linda McAvan has visited the UK’s only dedicated beverage carton recycling facility, to see how it is boosting recycling rates and closing the loop.

Opened in West Yorkshire in September last year, the facility is capable of recycling up to 40 per cent of the cartons manufactured each year for the UK food and drink market - that’s 25,000 tonnes or 1.25 billion cartons.

Since the facility opened a further 19 local authorities have introduced kerbside collection of cartons, increasing the total to 57per cent nationally.

McAvan claims: “This plant is an excellent example of UK businesses taking responsibility for product at end of life and ensuring that valuable resources are not lost.”

Commenting on the visit Richard Hands, Chief Executive, ACE UK, said: “We are very pleased to welcome Linda McAvan to our new facility. The plant is a game-changer in our on-going work to increase carton recycling in the UK. As well as providing significant benefits to local authorities, we know from our research that consumers are even more likely to recycle their cartons knowing they will be recycled here in the UK.

“Ensuring that beverage cartons can be easily recycled is an important part of the beverage carton industry’s commitment to sustainability.”

Read more about the UK plant.

Shanks plc issues results

Waste management company Shanks Group plc has issued its results for the year ended 31 March 2014.

The group increased its profit before tax by 14 per cent compared to that reported in 2012/13 – reportedly due to its exit from loss-making UK Solid Waste.

It also reported a revenue growth of four per cent (one per cent at constant currency), driven by the Hazardous Waste Division and UK Municipal.

Ongoing focus on capital discipline delivered strong cash performance with lower than expected core net debt at £156 million and net debt to EBITDA reduced to 1.9x.

The group say it now has ‘leadership positions’ in all its core markets with a ‘clear strategy to deliver profitable growth and attractive returns in each division’.

Shanks’ CEO, Peter Dilnot, said: “In the last year we have made good progress with our strategic goals and have delivered a robust performance, outperforming the sector in very challenging markets….Highlights include investing where we have the clear advantage, actively managing our business portfolio and delivering structural cost reductions. With this platform in place, we have laid the foundations for sustained profitable growth.”

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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.