(Newswire.net — December 28, 2014) — New York passed a law last year to restrict the sale and use of polystyrene, widely known as Styrofoam food and beverage packages. The law, however, was put on hold because the law would strike many producers and traders of the Styrofoam.
A possible solution to an issue is to recycle the material, so the recycling companies were given time to come up with the way to recycle Styrofoam. If the city deems polystyrene recyclable, it will begin processing it at a recycling facility in Brooklyn. If it decides it cannot be recycled, the ban is expected to go into effect in July.
According to a statement from Michael Westerfield, director of Dart Container, the company that produces Styrofoam, the material can be successfully recycled within next five thin next five ears without reaching for a city budget. He did not, however, explain who would cover the recycling costs.
Despite recycling companies cry out they have a solution, New York officials decided to agree with a study by the Natural Resources Defense Council, which holds that there is no safe and cost-effective way to recycle polystyrene, because of its low market value. In addition, the research found the risk of food contamination, so a ban is the only option, authorities said.
There are companies that greet this decision more than others do. According to Goldman Sachs report, it would be good news for Berry Plastics Group, which makes cups out of recyclable material similar, to polystyrene.
Goldman Sachs report says the coffee and donut chains would be the biggest byers of Berry’s hot and colt cups, estimating it could generate additional $10 million in revenue next year for Berry Plastics.
New York is likely to ban the use of foam containers sometime over the next 12 months, the Investment bank sources suggest.
The Styrofoam ban in New York follows the same laws already in power in San Francisco, Seattle, San Jose and Portland, which all restricted Styrofoam containers.