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Corus launches steel packaging plants after signs of recovery

Corus Steel Packaging Recycling has announced it is launching two new recycling plants in response to the upturn in demand for scrap steel.

The new Corus Approved Steel Packaging Recycling plants (CASPR) will buy steel packaging from local authorities, waste collectors and community collection schemes throughout the UK.

They will then prepare and bale the packaging before sending it to Corus UK plants to be recycled into new steel products.

Pontypool Steel in South Wales and Derwent Recycling situated near Workington, Cumbria will operate the CASPR plants with immediate effect.

Corus Steel Packaging and Recycling manager David Williams said: Demand for steel products on a global scale fell significantly, which in turn resulted in a sharp decline in demand for scrap steel. Unfortunately this led to the demise of Corus CanRoute collection network in October 2008. Since then we have been able to fulfil our own requirements for scrap steel by running down existing stock.

However, we recognise that we need to look to the future and are cautiously optimistic that the market is showing signs of recovery. The launch of the two CASPR sites is an ideal solution, offering us the right capacity given current market conditions. This move reflects our commitment to stabilise and encourage steel packaging recycling in the UK and achieve packaging targets set for 2010 and beyond.

Packaging Recovery Notes will be raised against all steel packaging processed at the plants, which will count towards the UKs steel packaging targets. Corus said it will offer collectors a competitive market price for scrap steel delivered to the plant.

Corus is not currently anticipating the establishment of additional CASPR sites, but it added that it will be closely monitoring the market and will respond accordingly.

Set up in 1998, Corus Steel Packaging and Recycling aims to promote the recovery and recycling of all types of steel packaging in the UK. It hopes to provide an end market for the recovered steel, increase recycling infrastructure and provide advice and technical information about recovery schemes to all types of organisations.

 

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