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While Shanghai has set up a good system for recycling scrap metal and old newspapers, more than 20 tons of drink boxes consumed by local people every day are collected as garbage and burned every year.

Experts estimate that local consumption of paper packs for drinks is increasing by 20 to 30 percent annually.

"Used paper packs can be processed to make important materials for construction projects," said a manager of Caile Environmental Protection Products Company, surnamed Qian.

Established in 1999, Caile is the only company in town to recycle paper packs. With a handling capacity of 20 tons of paper packs everyday, it has been running at less than capacity in recent years due to people's indifference and lack of collection channels.

"Currently we can get 200 kilograms of paper packs everyday mainly from garbage transfer stations where these packs are mixed with various residential waste and very dirty," said Qian.

The company also accept used packs from individual collectors at a price of 400 yuan (US$48) per ton, yet they get very few from this channel.

Made of recycled materials, their paper plates sell well especially to foreign companies which Qian says are more aware of environmental protection.

Qian said they plan to raise the price they offer for waste to lure more garbage collectors to join this project and set up more collection spots in residential communities.

Local residential wastes departments haven't put recycling of paper packs onto their agendas.

"It might be a waste of resources but it doesn't pose immediate threat to the environment," said Tang Jiafu, director of the Shanghai Waste Materials Administration.

He suggested the low collection price Caile pays is limiting its business development.

(eastday.com August 5, 2004)