A North Wollongong electronics recycling business is closing its doors, putting nine people out of work, after being forced by "cost pressures" to shut down.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Renewable Recyclers is a not-for-profit social enterprise which recycles e-waste - computers, televisions and other electrical goods - by dismantling them and "harvesting" materials that have re-use value.
It was established in 2010 with a mission to provide jobs for people who were experiencing social disadvantage and problems finding employment.
The Mercury understands moves have been under way for two years to lobby the federal government for reforms to the way the recycling sector is managed.
Social enterprises have complained that the National Television and Computer Recycling Scheme (NTCRS), introduced in 2012, was introducing cost and supply pressures that were threatening some recycling businesses' viability.
A statement on Friday from Renewable Recyclers' parent company, Richmond PRA, confirmed the closure.
CEO Pam Rutledge said the business was not able to achieve commercial sustainability in a competitive recycling market.
She said Richmond PRA was trying to find other jobs for the nine employees.
"Given that Renewable Recyclers has had a number of wins over recent years, the decision to suspend operations was difficult," Ms Rutledge said.
"However as time progressed and market circumstances changed, it became clear that we couldn't keep supporting a loss-making enterprise.
"We cannot thank enough the many people and organisations that have supported Renewable Recyclers over the years, including partners, customers and suppliers, and of course the employees themselves."
The operation on Ralph Black Drive is in the process of being wound up.
The NTCRS requires television and computer industries to fund collection and recycling of a proportion of their products disposed of each year.
As the industry's obligations have ramped up each year, to 33 per cent last financial year, cost pressures have increased on the recyclers. The Mercury understands Renewable Recyclers' workers dismantled appliances manually, which resulted in a "cleaner" recovery of materials. But other, larger, recyclers which used machines were able to do it more cheaply.
Community or social enterprises usually have higher costs than commercial operations.
Richmond PRA said it remained committed to the Illawarra.
