Wisynco to see $1 billion cut in sales with styrofoam ban - Mahfood
Chairman of Wisynco Group, William Mahfoood says the ban on plastic and styrofoam will affect the company's revenues negatively by about $1 billion or four per cent of total sales.
“Styrofoam represents four per cent of the company’s revenue and approximately three per cent of the company’s net income," said Mahfood in a statement.
Locally manufactured styrofoam food and beverage containers are to be banned effective January 1, 2020.
A ban on plastic straws will take effect on January 1, 2019. However, plastic straws represent less than 1/10th of one per cent of the company’s revenue.
The styrofoam impact works out to $980 million in sales and about $68 million in profit. Wisynco revenues for its June year end totaled $24.5 billion with net profit before tax at $2.26 billion.
Mahfood has maintained that a ban on plastics is not the answer to the solid waste problems in Jamaica; but rather, requires education and increased recycling mechanisms. Part of that drive involves his call for Government to fast track a deposit refund system for plastics bottles.
Starting January 1, 2019 single use plastics bags will be banned from use within stores for sizes below 24” x 24”. Also, plastic straws (both imported and locally manufactured) are to be banned.
Plastic straws attached to beverages (boxes/tetra packs and pouches) will be banned effective January 1, 2021. Imported styrofoam food and beverage containers are to be banned effective January 1, 2019.
Exemptions will be granted for Styrofoam packaging used to maintain public health and food safety standards, e.g. raw meat.