The German government's plans to introduce a deposit on beverage cans will not hurt demand for aluminum. In fact, the policy could even increase it, the head of the German aluminum industry association said.
The German cabinet approved plans for a compulsory deposit on cans of beer, water and soft drinks sold, starting Jan. 1, 2003.
The move responds to public concern about litter and the beverage industry's failure to reach its target of selling 72 percent of drinks in reusable containers.
The plan faces legal challenges by retail chains and large beer brewers. However, the law is supported by small and midsize brewers and drinks companies that have a high level of reusable containers.
Stefan Glimm, chief executive of the German Aluminum Association, said, "If a deposit should be introduced it is possible use of cans will be reduced but I do not believe the overall volume of aluminum used in can production will fall."
About 10 to 15 percent of German canned drinks are sold in tins comprising an aluminum body, base and lid, he said.
The rest largely have a steel body and base with an aluminum lid.
"A deposit could even be a chance to raise the proportion of aluminum used in can production as aluminum has very good properties making it suitable for recycling and multiple use," he said.
"Countries which already have a compulsory deposit on cans such as Sweden have a much higher proportion made from aluminum because of its good recycling properties, and this could happen in Germany too." Reuters