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2006-06-03 News Headlines
Tomra Recycling Centres
to accept plastics, metals, glass and packaging for Tesco
Tesco Plc to invest in Tomra Recycling Centres that recycle plastics,
metals, glass and packaging materials as a part of its on-going commitment
to WRAP.
TOMRA has entered into an agreement with UK's number one retailer Tesco Plc for delivery and service of 100 Tomra Recycling Centres (TRCs) at
Tesco superstores and Tesco Extra stores in the UK. Tesco is making the
investment as a part of its on-going commitment to encouraging and improving
customer recycling, and for TOMRA this means the first major sale of Collection
Technology to a market without deposit on beverage containers. The 100
TRCs will be installed from late 2006 and throughout 2007.
The world's first fully automated recycling center
TRC is a state-of-the-art recycling center based on cutting-edge material
recognition and compaction technology. Objects made of plastics, metals,
glass or other types of household packaging material are recognized with
almost 100% accuracy as they are inserted into user stations in the center.
After the objects have been identified, they are sorted and compacted
into separate high capacity storage bins.
Significant quantities of discarded materials can be stored in the center
due to unique volume reduction. Plastics and aluminum objects are granulated,
typically reducing the volume with 15:1, whereas glass bottles are crushed,
reducing volume by 3:1. As an example, the Tesco configuration of the
center can typically hold 20,000 PET/HDPE bottles, 35,000 aluminum cans,
10,000 glass bottles, 2,000 tins and steel cans and 2 tons of paper and
card.
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TOMRA recycling centers provide
a convenient and cost-effective way for communities to
recycle bottles and cans made of plastic, glass and metals.
Click
Go for larger image. photo: Tomra Systems ASA
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Through a combination of voice and visual guidance, this revolutionary
center also communicates with consumers. It offers information about recycling
and can also offer incentives such as lotteries, coupons, charity donations
etc. Furthermore, the centre automatically alerts the recyclers when it
needs to be emptied or calls for cleaning and other service when necessary.
Concept embraced by UK consumers
TOMRA and Tesco have together piloted the TRC in the UK since 2004 with
support from WRAP (the Waste & Resources Action Programme). The results
from the pilot centers and supporting research clearly show that UK consumers
appreciate the possibility to return all types of rigid packaging to a
convenient, clean, safe and automated facility. On average, approximately
100,000 objects are being returned to each of the current 6 centers per
month.
David North, Community Director for Tesco said: "Our customers want
to do their bit for the environment by recycling more. These machines
make it as easy and convenient as possible for them. Recycling will now
be fun, quick and easy to use."
A viable business model for TOMRA and its customers
The decision by Tesco to order 100 TRCs is important to TOMRA. Firstly
it proves the viability of the TRC business model itself. Secondly it
demonstrates the fact that TOMRA will become less dependent on introduction
of deposit legislation going forward.
The viability of the TRC business model is based on two key elements:
1) Advanced material recognition and sorting technology in order to obtain
clean material fractions and hence maximize the value of the collected
materials; 2) Cutting-edge volume reduction to minimize transportation
and handling costs. The value of the collected materials, in particular
aluminum and plastics, pays for a significant share of the TRC costs.
Other sources of revenues such as subsidies from local municipalities
and/or advertising can cover the remaining costs and even generate profits
for TRC operators. In certain markets, packaging taxes/recovery fees will
also be reduced when retailers take responsibility for collecting and
recycling the packaging they put on the market.
TOMRA's growth has historically has been linked to the introduction of
deposit legislation on beverage containers. With the TRC a new set of
opportunities opens up for the company in terms of commercializing its
technology. Instead of passively waiting for politicians to introduce
deposit legislation, TOMRA can now proactively focus its attention on
developing markets that need to improve their recycling efforts. TOMRA's
success with the TRC model will depend on the company's ability to understand
and respond to the needs of the local markets and tailor the TRC business
model accordingly.
Says Terje Hanserud, Senior VP, TOMRA: "The Tesco order shows that
it is now possible for TOMRA to establish a viable and sustainable business
model in a major market without deposit. TOMRA is looking forward to working
with Tesco and potential other future customers to further develop the
business model and the technology."
Find information about Tomra Systems ASA.
Read a recent press release from Tomra about - 'Tomra and Sumitomo sign
partnership agreement to develop
market for reverse vending machine solutions for collection and recycling
of used beverage container packaging.'
Find Information and Suppliers for recycling machines.
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