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Corus Steel Packaging Recycling, the UK's largest steel reprocessor, has called on the government to set higher recycling targets so the industry can maintain momentum.

Despite record output in 2006, the firm said it was still operating well below its potential capacity.

The UK's steel packaging recycling rate stands at 57.3%, exceeding the 2008 target of 54%, but Corus manager David Williams said this was a mixed blessing.

"Hitting this target two years early could leave the industry in the doldrums and lacking momentum," he said. "We need the government to set its targets for 2015 or 2020 to give the industry something to work towards."  

In its 2006 PRN (Packaging Recovery Note) annual report, published last week, Corus said that by recycling more of the can scrap used in the basic oxygen steelmaking (BOS) process, it could increase its recycling capacity to 175,000 tonnes per year.

However, Williams said the firm was geared up for much higher output levels. "Given the right trading conditions, Corus could already handle a capacity of up to 330,000 tonnes," he said. "This would depend upon having a full order book and the make-up of the steel we were producing, but it's theoretically possible."