Coral clinches recycling products deal
PLASTIC bins to DVD box manufacturer Coral Products has signed a three-year deal with two local authorities for its new range of home recycling products.
The Haydock-based business has signed the framework agreement with the Eastern Shires Purchasing Organisation (ESPO) and the Central Buying Consortium (CBC).
The contract means that it will supply councils with its new range of kerbside crates, lids and dividers as well as its kitchen and kerbside food caddies.
ESPO and CBC have a potential geographical spread from North Nottinghamshire through to Hampshire, including Bristol in the West and Norfolk in the East.
Coral did not provide a value for the contract in a trading update for the period since December 2 but added that its media packaging products remained its core business.
But it did say that sales of these media-based products had started slowly in 2010 after being at the top end of expectations in the final months of 2009.
The statement said: “Expectations are that turnover of DVD cases will improve in line with the launch of several new films this year.
“Some additional capital expenditure is necessary in order to introduce a lightweight box with improved environmental qualities.”
Coral said that its margins have recently been under pressure from raw material price increases but the company was still optimistic that its diversification into the new recycling products will be justified.
