News: Beatson Clark to continue Rotherham's recycling at reduced price
Councillors and commissioners in Rotherham have agreed to a request from Beatson Clark to reduce the price the historic firm pays for the authority's blue box recycling.
Beatson Clark, which has manufactured glass in Rotherham for over 260 years, has held the contract to manage the town's recycling collections for a number of years.
The latest contract began in 2014 but since then, the market price for recycled material has plunged, which led to the firm requesting a new price paid as part of the contract that generates income for the Council. It added that if the price could not be agreed then it would terminate its agreement.
A report to the council said: "For the third annual review of the contract, Beatson Clark has requested a reduction in the contract price they pay to the council. The company cite the reason they wish to reduce the price paid per tonne as due to major reductions in the market price of recycled materials."
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The council has agreed to the new price from July and the market price is also to be reviewed quarterly. Whilst not disclosed, the negotiated price is "very competitive" in the current marketplace. It is estimated that introducing the new terms would cost the council some £72,000 this year.
The cost of re-tendering the contract and the potential of delivering blue box waste to another site was also taken into account by the council.
Caroline Bruce, interim director of Environment & Development Services at Rotherham Council, said: "Very similar to the report that came to cabinet a few months ago for paper [the council agreed a similar reduction for its contract with Newport paper recycling], the market for recyclates has significantly reduced over 18 months and we are getting to a position where rather than be paid for our recyclates, we could have ended up having to actually paying for that recyclate to be taken away.
"In conjunction with our partner, Beatson Clark, we are negotiating a deal which does create a reduction in income for this year but that reduction is better than it could have been had Beatson Clark decided to pull out of the contract - which they were well within their rights to do.
"This recommendation represents the most advantageous financial position for the council and we'll be looking at recycling as part of a waste strategy from 2017."
The Greasborough Road firm, which has been making glass bottles and jars in Rotherham since 1751, specialises in providing glass packaging solutions for niche brands in the food, drink and pharmaceutical markets worldwide. It receives 6,240 tonnes of mixed material from the council every year, of which 4,734 tonnes is glass.
Beatson Clark invested £840,000 in a new automated recycling system which makes recycling much faster and allow it to process more cullet (waste glass) for its furnaces.
Beatson Clark website
Images: Beatson Clark
Beatson Clark, which has manufactured glass in Rotherham for over 260 years, has held the contract to manage the town's recycling collections for a number of years.
The latest contract began in 2014 but since then, the market price for recycled material has plunged, which led to the firm requesting a new price paid as part of the contract that generates income for the Council. It added that if the price could not be agreed then it would terminate its agreement.
A report to the council said: "For the third annual review of the contract, Beatson Clark has requested a reduction in the contract price they pay to the council. The company cite the reason they wish to reduce the price paid per tonne as due to major reductions in the market price of recycled materials."
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The council has agreed to the new price from July and the market price is also to be reviewed quarterly. Whilst not disclosed, the negotiated price is "very competitive" in the current marketplace. It is estimated that introducing the new terms would cost the council some £72,000 this year.
The cost of re-tendering the contract and the potential of delivering blue box waste to another site was also taken into account by the council.
Caroline Bruce, interim director of Environment & Development Services at Rotherham Council, said: "Very similar to the report that came to cabinet a few months ago for paper [the council agreed a similar reduction for its contract with Newport paper recycling], the market for recyclates has significantly reduced over 18 months and we are getting to a position where rather than be paid for our recyclates, we could have ended up having to actually paying for that recyclate to be taken away.
"In conjunction with our partner, Beatson Clark, we are negotiating a deal which does create a reduction in income for this year but that reduction is better than it could have been had Beatson Clark decided to pull out of the contract - which they were well within their rights to do.
"This recommendation represents the most advantageous financial position for the council and we'll be looking at recycling as part of a waste strategy from 2017."
The Greasborough Road firm, which has been making glass bottles and jars in Rotherham since 1751, specialises in providing glass packaging solutions for niche brands in the food, drink and pharmaceutical markets worldwide. It receives 6,240 tonnes of mixed material from the council every year, of which 4,734 tonnes is glass.
Beatson Clark invested £840,000 in a new automated recycling system which makes recycling much faster and allow it to process more cullet (waste glass) for its furnaces.
Beatson Clark website
Images: Beatson Clark
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