On October 1 a national deposit system was implemented in
Germany for non-refillable beverage containers. Many retail
chains representing over 100.000 points-of-sale, have
established independent deposit systems or joined third-
party operated systems. Retailers which currently are not
participating in established deposit systems have delisted
non-refillable packaging from the stores.
In connection with retailers` preparations for the
introduction of deposit in Germany, TOMRA has signed two
frame agreements for the delivery of reverse vending
systems for non-refillable containers valued at
approximately 90 MNOK. The first installments under these
agreements will be completed during the fourth quarter.
Technology sales in Germany for refillable containers have
significantly improved during the third quarter. This is
expected to continue in the fourth quarter.
71% revenue increase in Sweden, driven by the Coop Sweden
order signed in second quarter
The growth in revenues during the third quarter was driven
by installations at Coop Sweden`s stores. The majority of
the remaining machine placements and upgrades at Coop
Sweden`s stores will be completed in the fourth quarter.
Signed frame agreement with Royal Ahold in Europe worth up
to 250 MNOK
TOMRA has entered into a frame agreement with the Royal
Ahold group in Europe worth up to 250 MNOK. The term of the
agreement is from October 2003 through January 2006.
Signed contract with US retailer, Shaw`s Markets, for
delivery of 500 machines
TOMRA entered into an agreement with a a new customer,
Shaw`s Markets, to deliver approximately 500 machines
throughout Connecticut, Massachussetts and Vermont.
Legislative approval in California for increase in deposit
New legislation in California has been approved resulting
in an increase in deposit as of 1 January 2004 from 2,5
cent to 4 cents for containers higher than or equal to 24
ounces. TOMRA anticipates that the increase in deposit will
have a significant positive effect on revenues and profit
in California in 2004.
Consumption of beverages sold in aluminum cans has dropped
significantly in Brazil due to the overall depressed macro-
economic situation, and is estimated to decrease by over 10
% in 2003. As a consequence, used beverage container
collection volumes have also dropped at a similar rate,
which has negatively impacted TOMRA`s operations in Brazil.
Volumes are expected to return to normal in 2004.
New unit in TOMRA - Recycling Solutions
In order to further accelerate execution of new growth
opportunities in the non-deposit markets, TOMRA has
established a new unit called Recycling Solutions. With the
establishment of the new unit, TOMRA will strengthen and
better coordinate its activities within business
development and technology solutions for non-deposit