Tomra boosted by German recycling news
OSLO - Shares in Norwegian recycling firm Tomra rose 9.1 percent last week on news that Germany had moved closer to a new can and bottle deposit regime which would boost Tomra sales, the company and traders said.
Tomra, a leader in making machines that repay a deposit when customers return a bottle or can for recyclying, was trading up 10.0 Norwegian crowns ($1.12) at 120.0 crowns at 1148 GMT.
Tomra said the German environment ministry had rejected a proposal by Germanys upper house, the Bundesrat, to implement a self-regulating recycling system for the drinks industry.
Erik Thorsen, Tomra chief executive, said that meant that an extensive deposit system, agreed under the previous government, would come into effect before next summer.
"I assume that is the reason why the share price is moving," Thorsen told Reuters, noting that a new regime would open the way for increased sales of recycling machines in Germany.
The German government wants to impose a deposit of between 0.25 and 0.5 euro cents on all non-recyclable beverage packaging, excluding wine bottles, but crucially including soft drink cans.
Tomra shares, which have proved to be very sensitive to political developments in Germany, have traded between a year-high of 124 crowns on February 20 and a low 98.50 crowns on July 25.
"The new development in Germany is positive for Tomra. It is what many have been waiting for," a trader said.
The Oslo bourse had halted automatic matching of Tomra shares for 13 minutes early last week to investigate the share price movement, but resumed matching without further information.
REUTERS NEWS SERVICE
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