low redemption value seen stunting consumer motivation : some centers close as container recycling lags - glass water bottle companies
Three recycling companies that operate most of California's 2,400 redemption centers have been forced to close several because the public has not returned enough aluminum cans, glass bottles and plastic containers under California's new anti-corruption measureslitter law.
Industry spokesman said the problem is simple-
The redemption value of 1 cent per container is not enough to ensure profitability or motivate consumers to hand in the container.
"Recyclers twist slowly in the wind," Ron Schweitzer, general manager of Orange County --
The mobile recycling center said Monday.
"This is something that must be acknowledged.
"Some companies are closing 10% out of 240 centers, and there may be more closures by the end of July 4," Schweitzer said . ".
Another company in Virginia
Environmental Products Based
Said it has slowed delivery of more than 800 automated machines-
Designed to accept aluminum cans, glass bottles and plastic containers-
Due to unspecified losses until next year.
"There is no doubt that we are struggling," Bruce H.
The company's president, de Wolfson, said.
"Before we see that the number reaches a certain level to make it a viable business, we may have to suffer three to five years of losses.
"It has deployed 450 machines across the state.
A spokesman for the two companies said the loss of mobile recycling and environmental products could reach "millions of dollars ".
Officials from the recycling department of the Ministry of State protection, which oversees the project, said they are not currently worried about shutting down.
"They now represent 1% of all centers," said spokesman Mercedes Azal . ".
She and others think complaining about 1-
The level of cent exchange.
"This is still a period of falling volatility," she said . ".
But some lawmakers in Sacramento are shocked by the closure.
"I find this very disturbing and it has the potential to disrupt the network (
"Member Bert magolin (D-Los Angeles)
Author of The returnable beverage containers act.
He said he would seek to increase the refund if this trend continued.
Since the plan came into effect on October. 1, state-
Authorized centers in 2,500 parts of the state began accepting containers.
Under the scheme, grocers are required to set up a recycling center to accept recyclable bottles, cans and containers.
However, the new law is a compromise that is the result of more than 20 years of lobbying by the legislature, where the beverage industry and others oppose recycling efforts.
Part of the compromise is to agree that the redemption value for each container is 1 cent.
If it does not reach the return level of 65% by January.
1. 1990, the redemption value will automatically increase to 2 cents.
If it does not reach 65% by January.
1,1993, the return value is 3 cents. As of Feb.
1. The return rate of aluminum cans is 57%, and the return rate of glass bottles is 46%.
Plastic container 02%
The project has been plagued by problems.
A major recycler, Owen's 20/20 recycling centers, had to close some of its 900 ice houses --
The center formed by lack of return.
But officials blamed the closure on the saturation of redemption centers in some parts of northern California.
It also had to respond to local requirements from some cities and owners for fees and permits to set up the center.
But the recycling company says the biggest problem is 1-
It is not enough to return a penny.
Schweitzer and others say they are lobbying for new legislation to increase the value of the redemption to 1/2 cents, and the rest to 5 cents by 1990.
These growth will also provide 5-
They believe that there is a return on the container.