32
A key component of pricing any recy- cled commodity is the cost of transporta- tion. Generally, profit diminishes for both the seller and the buyer according to how heavy the load is and how far it travels. By volume, scrap metal is the heaviest com- modity and must deal with the heaviest costs for transport. Even moving a ton of scrap iron a short distance from a fabricat- ing shop to a local scrap yard involves numerous expenses – labor to load the material, the wages of a truck driver; vehi- cle depreciation, maintenance, insurance and fuel, miscellaneous road expenses and deadhead return of the vehicle. As inland distances increase to a port whether by truck, barge, rail or intermodal the transportation costs multiply to include costs for regulation compliance, and depending on the marine terminal, a grow- ing number of increasingly expensive environmental, security and foreign cur- rency exchange fees. Obviously, the main driver of price is supply and demand, but higher transporta- tion expenses must come out of the pock- ets of the exporter or the foreign importer. In a buyers’ market, the seller likely eats the lion share. “Transportation costs are quite an important component of ferrous scrap, because the product is usually free on board (FOB) mill whether it’s across town, across the state or nation or to a for- eign destination,” said Greg Crawford, vice president of operations at the Scrap Recycling Institute (SRI), a department of the American Iron and Steel Institute. The Institute of Scrap Recycling Industries (ISRI) recently released its 2009 export statistics. The volume in met- ric tons of ferrous (including stainless) showed that United States domestic exports rose 4.7 percent in 2009 over 2008 (21.5 to 22.4 million metric tons), but the monetary value dropped precipitously by a hefty 31 percent from $10.3 billion to $7.1 billion. Marc Azous, chief executive officer of Iron Industries LLC, who exports United States scrap metal primarily to India and South Korea, gave his opinion on what is happening. “Prices have nearly doubled over the last year. Prices were get- ting up to $700 a ton delivered to many places back in 2008. I see history repeat- ing itself right now. Prices are rising too high too fast again and I think there is going to be a correction because of what is happening in Asia. Although there’s demand, they have huge inventories of fin- ished steel products. Until they offload the new products there’s no need to raise prices for the scrap. In South Korea, for example, they inventoried scrap when prices were low so they have supply in their yards.” Meantime, increasing costs for trans- portation are tightening margins for United States scrap yards and exporters all along the supply chain. Wildly fluctuating fuel prices over the past several years have been largely stabilized by the transporta- tion industry with fuel surcharges imposed by truckers, railroads and ocean carriers. And, fuel prices are on the rise. “Truckers are basically making their money by killing everyone with fuel sur- charges. We’ve recently had fuel sur- charges as high 27 percent. There are ecycler R A R ® Vol. 13 • Issue 5 May 2010 NewsVoice of Salvage, Waste and Recycling AmericanRecycler.com $6.00 ecycler R 05.2010 900 W. South Boundary, Bldg. 6 Perrysburg, OH 43551-5235 CHANGE SERVICE REQUESTED PRSRT STD U.S. Postage PAID Columbia, MO Permit No. 353 Scrap Metals MarketWatch On Topic Salvaging Millions Business Briefs Events Calendar New Product Showcase AR Classifieds Focus Section Equipment Spotlight A Closer Look Pennsylvania awards $20 million in recycling grants. Page A5 EPA certifies first electronics recyclers. Page A11 Steel imports decrease by five percent in February. Page A7 Copper volatility leads to calls for regulation. Page B1 More vehicles scrapped than added to fleet. Page A9 Alcoa dedicates expanded recycling operations. Page B3 WHAT’S INSIDE Focus Section Cover, Page B1 Current scrap markets on upswing by MIKE BRESLIN [email protected] Bulk vessels are an important link in the global supply chain of scrap metals, but containerization has grown substantially over the past several years. See EXPORTERS, Page 4 Escalating transportation costs deflate profits for scrap metal exporters PHOTO COURTESY OF IRON INDUSTRIES LLC. 8 10 16 18 18 20 21 B1 B4 B6 Recovery Act funding jumpstarts new waste-to-energy facility The United States Environmental Protection Agency (EPA) joined the Ken- tucky Infrastructure Authority (KIA) to recognize a $1.95 million project funded in part through the American Recovery and Reinvestment Act (ARRA) of 2009 in Lexington, Kentucky. The Kentucky Horse Park received loans through the Clean Water State Revolving Fund for the purchase and installation of a manure bioenergy management facility. The Kentucky Horse Park spends an average of $200,000 per year to dispose of horse manure. The construction of the new manure bionergy management facil- ity is a practical and sustainable solution that will eliminate costs associated with waste disposal while providing many environmental benefits. The productive reuse of horse manure to generate electricity is expected to substantially offset electric charges incurred. Energy from waste produces less greenhouse gases than the continued transport of manure to the landfill. The project will serve the North Elkhorn Creek watershed and provide regional water quality benefits to the area. The on-site storage of manure will not con- See RECOVERY ACT, Page 5

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Page 1: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

A key component of pricing any recy-cled commodity is the cost of transporta-tion. Generally, profit diminishes for boththe seller and the buyer according to howheavy the load is and how far it travels. Byvolume, scrap metal is the heaviest com-modity and must deal with the heaviestcosts for transport. Even moving a ton ofscrap iron a short distance from a fabricat-ing shop to a local scrap yard involvesnumerous expenses – labor to load thematerial, the wages of a truck driver; vehi-cle depreciation, maintenance, insuranceand fuel, miscellaneous road expenses anddeadhead return of the vehicle.

As inland distances increase to a portwhether by truck, barge, rail or intermodalthe transportation costs multiply to includecosts for regulation compliance, anddepending on the marine terminal, a grow-ing number of increasingly expensiveenvironmental, security and foreign cur-rency exchange fees.

Obviously, the main driver of price issupply and demand, but higher transporta-tion expenses must come out of the pock-ets of the exporter or the foreign importer.In a buyers’ market, the seller likely eatsthe lion share. “Transportation costs arequite an important component of ferrousscrap, because the product is usually free

on board (FOB) mill whether it’s acrosstown, across the state or nation or to a for-eign destination,” said Greg Crawford,vice president of operations at the ScrapRecycling Institute (SRI), a department ofthe American Iron and Steel Institute.

The Institute of Scrap RecyclingIndustries (ISRI) recently released its

2009 export statistics. The volume in met-ric tons of ferrous (including stainless)showed that United States domesticexports rose 4.7 percent in 2009 over 2008(21.5 to 22.4 million metric tons), but themonetary value dropped precipitously by ahefty 31 percent from $10.3 billion to $7.1billion.

Marc Azous, chief executive officerof Iron Industries LLC, who exportsUnited States scrap metal primarily toIndia and South Korea, gave his opinionon what is happening. “Prices have nearlydoubled over the last year. Prices were get-ting up to $700 a ton delivered to manyplaces back in 2008. I see history repeat-ing itself right now. Prices are rising toohigh too fast again and I think there isgoing to be a correction because of what ishappening in Asia. Although there’sdemand, they have huge inventories of fin-ished steel products. Until they offload thenew products there’s no need to raiseprices for the scrap. In South Korea, forexample, they inventoried scrap whenprices were low so they have supply intheir yards.”

Meantime, increasing costs for trans-portation are tightening margins forUnited States scrap yards and exporters allalong the supply chain. Wildly fluctuatingfuel prices over the past several years havebeen largely stabilized by the transporta-tion industry with fuel surcharges imposedby truckers, railroads and ocean carriers.And, fuel prices are on the rise.

“Truckers are basically making theirmoney by killing everyone with fuel sur-charges. We’ve recently had fuel sur-charges as high 27 percent. There are

ecyclerRA R ®

Vol. 13 • Issue 5 May 2010

NewsVoice of Salvage, Waste and Recycling AmericanRecycler.com

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Scrap Metals MarketWatchOn TopicSalvaging MillionsBusiness BriefsEvents CalendarNew Product Showcase AR ClassifiedsFocus SectionEquipment SpotlightA Closer Look

Pennsylvania awards $20 million inrecycling grants. Page A5

EPA certifies first electronics recyclers.Page A11

Steel imports decrease by fivepercent in February. Page A7

Copper volatility leads to calls forregulation. Page B1

More vehicles scrapped thanadded to fleet. Page A9

Alcoa dedicates expanded recyclingoperations. Page B3

WHAT’S INSIDE

■ Focus Section Cover, Page B1

Current scrapmarkets on upswing

by MIKE [email protected]

Bulk vessels are an important link in the global supply chain of scrap metals, but containerization hasgrown substantially over the past several years.

See EXPORTERS, Page 4

Escalating transportation costs deflateprofits for scrap metal exporters

PHOTO COURTESY OF IRON INDUSTRIES LLC.

8101618182021B1B4B6

Recovery Act funding jumpstartsnew waste-to-energy facility

The United States EnvironmentalProtection Agency (EPA) joined the Ken-tucky Infrastructure Authority (KIA) torecognize a $1.95 million project fundedin part through the American Recoveryand Reinvestment Act (ARRA) of 2009in Lexington, Kentucky. The KentuckyHorse Park received loans through theClean Water State Revolving Fund for thepurchase and installation of a manurebioenergy management facility.

The Kentucky Horse Park spends anaverage of $200,000 per year to disposeof horse manure. The construction of thenew manure bionergy management facil-

ity is a practical and sustainable solutionthat will eliminate costs associated withwaste disposal while providing manyenvironmental benefits.

The productive reuse of horsemanure to generate electricity is expectedto substantially offset electric chargesincurred. Energy from waste producesless greenhouse gases than the continuedtransport of manure to the landfill.

The project will serve the NorthElkhorn Creek watershed and provideregional water quality benefits to the area.The on-site storage of manure will not con-

See RECOVERY ACT, Page 5

Page 2: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

American RecyclerPage A2, May 2010

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Directories recycled withhelp from Oahu residents

This year, thousands of expired tele-phone directories in Hawaii were kept outof landfills and processed into reusableproducts thanks to Oahu community mem-bers and the Think Yellow, Go GreenRecycling Program. Oahu residents, Berryand Hawaiian Telcom Yellow Pages cametogether to repurpose more than 53 tons ofrecycled telephone directories, the equiva-lent of approximately 28,000 directories.Once recycled, directories were then con-verted into oil-absorbent materials andused to manufacture oil change kits,kitchen oil disposal boxes and mulch forlocal companies such as The Original OilChange Box and Green Lava & ProSeedHydro-Mulch.

The month-long recycling programwas supported by volunteers from the

Lokahi Giving Project, who staffed thedrop-off locations, and All Rolloff Serv-ices, who provided containers and haulingservices.

Residents were invited to recycle theiroutdated and extra phone directories atparticipating locations throughout theisland. Directories were accepted at theKahala Mall, Ward Warehouse, WinwardMall and Waikele Premium Outlets. Recy-cled directories were then shipped to localrecycler, Island Shell LLC.

“If you lined up this year’s total recy-cled directories, it would stretch fromHaleiwa to Honolulu and back,” saidSzczekocki. “Each one of those recycleddirectories is one step closer to a greenercommunity.”

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American Recycler May 2010, Page A3

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A Colorado Senate Committeeapproved comprehensive legislation toreform the state’s scrap tire laws. Morethan 60 million stockpiled scrap tiresare in Colorado, which is one of the fewstates where piles are growing.

The Rubber Manufacturers Associ-ation (RMA) has been working tochange Colorado’s scrap tire law sincethe last changes were made to the pro-gram several years ago. RMA testifiedin favor of the legislation this week.

HB 1018, which passed the Housein March, was unanimously approvedby the Colorado Senate TransportationCommittee. The measure will next beconsidered by the Senate Finance Com-mittee.

“HB 1018 is the result of eightmonths of negotiation among all majorscrap tire stakeholders in Colorado,”said Michael Blumenthal, RMA vicepresident, who testified in support ofHB 1018. “If enacted, Colorado will beable to address some of the gaps in theirprogram, while focusing on marketdevelopment and continued stockpileabatement.”

Colorado currently imposes a $1.50fee on new tires that should be used forenforcement of state scrap tire regula-tions, cleanup of waste tire piles andmarket development.

“Unfortunately, Colorado has noteffectively managed scrap tires,” Blu-menthal said. “The state has the greatestnumber of tires in stockpiles in thenation and unless the system is changed,those piles will continue to grow.”

HB 1018 would:•Place more of the scrap tire funds

directly into scrap tire activities. •Consolidate all waste tire pro-

grams under the Colorado Departmentof Public Health and Environment(CDPHE) and establish new require-ments for scrap tire market develop-ment, fire planning and prevention,waste tire hauler regulations and wastetire facility regulations.

•Create regulations that will benefitthe state and the scrap tire industry andclose gaps in the regulation that willdecrease the incidence of unlawfuldumping of tires.

•Create an advisory committee thatcan provide ongoing review and evalua-tion of the program that will increasethe likelihood of constant improvementto the program.

“We will continue to press Col-orado lawmakers to enact this legisla-tion,” Blumenthal said.

Scrap tiremeasureapproved

Con Edison awarded for recycling For recycling almost 50,000 tons of

materials, Con Edison has captured oneof the federal Environmental ProtectionAgency’s (EPA) highest honors, aWasteWise Gold Achievement awardfor industrial material recycling.

This award recognizes the com-pany’s performance in 2008 forrecycling 90 percent of the totalwaste materials handled. This successtranslated to close to 50,000 tons ofwaste materials from company loca-tions.

In addition to recycling commonmaterials like paper and cardboard, ConEdison also recycles industrial materialsthat have been reclaimed from utilityoperations, such as metal and scrap

cable, sand and soil from excavationsites and construction and demolitiondebris.

Con Edison’s recycling programsaves money and manages materials inan environmentally sound way. In 2008alone, the company estimated that itsaved over $19 million through itswaste-reduction efforts. Programs rangefrom directives requiring two-sidedcopies throughout administrative officesto a metal recycling program from com-pany construction sites.

As part of joining the EPA Waste-Wise voluntary reporting program, ConEdison began to track all materials itrecycles. In 2008, the company esti-mated it recycled:

•33,000 tons of sand and dirt. •11,500 tons of metal. •3,400 tons of trash. •1,300 tons of construction and

demolition debris. •100 tons of wood. •400 tons of mixed office paper. •150 tons of corrugated cardboard. •140 tons of skids and chairs. •120 tons of plastic. •50 tons of electronic equipment. In 2009, Con Edison achieved a 91

percent recycling rate for its generationof 67,000 tons of the same materialstreams. This represents a trend in mate-rial reuse and cost savings that the com-pany is seeking to not only maintain, butalso improve upon annually.

Target launched permanent commu-nity recycling stations in all 1,740 stores ina month-long celebration of the 40thanniversary of Earth Day. Throughout themonth, the celebration also included thelaunch of an online eco-boutique whereguests could find eco-friendly productsand learn more about the Company’s com-mitment to the environment, a month-longsweepstakes, a reusable bag giveaway anda unique Target circular.

Located at the front of each store, therecycling stations offer guests a convenientway to recycle aluminum, glass and plasticbeverage containers, plastic bags, MP3players, cell phones and ink cartridges.

Target begins in-store recycling

Page 4: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

American RecyclerPage A4, May 2010

American Recycler is published 12 times per year, postage paid at Columbia, Missouri.

SUBSCRIPTIONS: Call our offices at 877-777-0737 or visit w w w. A m e r i c a n R e c y c l e r. c o m . US 1 year $48; 2 years $72.

© COPYRIGHT 2010 by American Recycler. All rights are strictly reserved and reproduction in whole or in part is prohibited without prior written permission from the publisher.

Submission of articles, artwork and all photography must be accompa-nied by a self-addressed stamped envelope if a return of materials is wanted. Byline contributors’ views should not be construed as repre-senting the opinion of the publisher.

American Recycler reserves the right to edit any and all material submitted for publication. All Letters to the Editor must be signed and include a telephone number for verification. The editor of this publi-cation does not accept responsibility for statements made by advertisers herein.

PRINTED ON RECYCLED PAPER

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ESTHER G. [email protected]@AmericanRecycler.com

Production and Layout

MARY E. [email protected]

Editorial Focus Section Editor, Production and Layout

DAVID FOURNIER, [email protected]

Marketing Representatives

MARY M. [email protected] E. [email protected]

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DONNA L. [email protected]

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MIKE [email protected] [email protected] FOURNIER, [email protected] [email protected] [email protected] [email protected]

Production Offices

900 W South Boundary, Bldg 6Perrysburg, OH 43551-5235877-777-0737 fax 419-931-0740www.AmericanRecycler.com

877-777-0737 Fax 419-931-0740

hidden costs everywhere in transportationright now,” said Azous.

Many see the record profits of theUnited States railroad industry over the pastseveral years not as a result of an increasein neither traffic nor expanded service, butlargely due to high fuel surcharges.

Scott Horne, general counsel and vicepresident of government affairs at ISRIcommented on issues with railroads: “Ourrole in interstate transportation has beenlargely focused on the railroads because somany containers go by rail to the ports. Wework to make sure it’s a fair and level mar-ketplace for our shippers. We played a rolewith bulk shipments as well to alleviate theshortage of gondola cars that was severeuntil the market dropped off one and a halfyears ago. We are also trying to encouragerailroads to improve service; many of ourmembers have encountered great difficultygetting the level of service they need.”

Ocean carriers have formulated com-plex bunker fuel surcharges. Maersk Line,for instance, one of the world’s largest con-tainer carriers, has constructed a surchargescheme in its contracts that incorporatesfuel consumption, transit time and imbal-ances in container flows to ensure prof-itability. The formula includes recalculating

bunker fuel every three months based onthe previous 13 week fuel price average.

In mid-February all the major oceancarriers initiated a general rate increase.They raised the price $200 dollars per con-tainer, about $10 dollars a ton for 20 tonsloaded. “Can you raise your price to the cus-tomer to compensate for that price increase,or lower the price you pay for scrap?”Azous questioned. “Ocean freight is key toeverything now, the most predominate fac-tor in buying.”

In logistics, when they say they haveno containers available that means eithertwo things – they are booked solid and haveno vessel space, or they don’t want scrapmetal containers because they can use themfor other products that they can charge morefor. “Why would they give me a containerfor $600 dollars to China when they can sellthat same container to Microsoft for $4,000dollars?” Azous added.

Already-high container handling costsat United States marine terminals due tolongshore worker and stevedore union con-tracts are being augmented by a range ofadditional costs for security measures, envi-ronmental programs and trucking fees. TheTransportation Security Administration(TSA) requires all truck drivers entering asecure area of a United States MaritimeTransportation Security Act-regulated portor vessel to have a Transportation WorkersIdentification Credential Card (TWIC). Thisbiometric credential, valid for 5 years, costs$132.50 per driver. To date 1.5 million driv-ers have enrolled. Do the math and add theadministration burden for the truckingindustry.

Containers of scrap metal must notexceed weight limit requirements and mustbe loaded properly for weight distribution.Other than proper export documentation and

declaring that shipments contain no radia-tion or chemical contaminates, there are nosecurity requirements for scrap metal on theexport side, however, increased port securityfor imports for things like radiation scan-ning equipment and open-container inspec-tions drive up costs that are ultimatelyreflected in higher shipping rates.

Aggressive environmental programs toreduce air and water pollution, especially atwest coast ports are laudable, but ultimatelythe costs are passed on to shippers. The Portof Long Beach, California, bills itself as“The Green Port” and claims that its ambi-tious Clean Trucks Program has thus farreduced air pollution from harbor trucks bynearly 80 percent. But at what cost toUnited States exports?

On January 1, the Port further bannedtrucks with 1993 and older engines and alsobarred nearly all trucks with 1994-2003engines. By 2012, all trucks that don’t meet2007 emission standards will be banned. Alltrucks built before 2003 that enter the portmust pay a Green Fee of $100, unless theyoffload at night, but the freight-forwardercan sometimes get the fee waived.

This means trucking companies willhave to replace thousands of trucks muchsooner than anticipated which willinevitably lead to higher drayage rates. Inaddition, all truckers working at the marineterminals at the Ports of Long Beach andLos Angeles must register and pay a $100dollar annual fee for each truck.

In February, the Port doubled financialincentives to $6 million a year to encourageships to slow down within 40-miles of theport to further reduce air pollution fromdiesel engines.

The Port Authority of New York andNew Jersey also has a Clean Truck program.Beginning January 1, 2011, pre-1994 modeltrucks will no longer be able to enter PortAuthority marine terminals. And, on Janu-ary 1, 2017, all trucks hauling freight fromthe port must meet or exceed 2007 federalemissions standards.

The further inland scrap is located, themore difficult the challenges faced byexporter. Take the case of Baker Iron andMetal, central Kentucky’s largest scrapmetal processor. “For us it’s more difficultto export ferrous than nonferrous. Trans-portation costs have impact, but more so inferrous. Nonferrous export is a pretty goodmarket for us most of the time. On the non-ferrous side approximately 30 to 35 percentis export,” said Greg Dixon, general man-ager.

Baker’s ferrous export varies everymonth, most months very little, but somemonths it ships to an export ramp in Cincin-nati where it goes by barge to ports. Bakersells predominately to export brokers toreduce risk. “Surprisingly there’s not a lot ofintermodal from here to the east coast and Idon’t know why that is,” Dixon said.

Most major ocean shipping lines havefacilities in the major inland cities, but if notnear a rail head with the availability of gon-dola cars, container loading facilities, or notnear a water route, the alternative is roadhauls that eviscerate profit. “Going fromLong Beach to a port like Shanghai (6,500miles) for a 20’ container, you’re looking at$375, but to go from Long Beach to SanDiego (93 miles) by truck, you’re looking at$700 to $800, which is ridiculous. It’s dou-ble to ship domestically for two hours thanto cross the widest ocean,” said Azous.

Exporters■Continued from Page 1

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Page 5: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

American Recycler May 2010, Page A5

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tribute to ground or surface water pollu-tion, which will help to maintain theunnamed tributaries to Cane Run that flowinto North Elkhorn Creek.

In 2009, the EPA distributed $49.9million in ARRA funding to KIA to helpthe state finance overdue improvements towater projects that are essential for pro-tecting public health and the environment.The funding augmented Kentucky’s CleanWater State Revolving Fund (SRF) pro-gram, which provides low-interest loansfor water quality protection projects forwastewater treatment, non-point sourcepollution control, and watershed and estu-ary management. The Kentucky HorsePark project received $1,950,000 in assis-tance through the SRF, including $950,000in ARRA funds.

Recovery act■Continued from Page 1

Pennsylvania awards $20million in recycling grants

Local recycling and compost pro-grams in 40 counties across Pennsylva-nia received a boost as Governor EdwardG. Rendell announced $20 million ingrants to help support these efforts thatemploy tens of thousands of people andcontribute billions of dollars to the econ-omy.

The 113 recycling development andimplementation grants the Governorannounced will reimburse municipalitiesfor costs associated with establishingand maintaining recycling and compost-ing programs.

“Pennsylvania’s recycling industryis directly responsible for more than52,000 jobs with an annual payroll of $2billion; it also generates $20 billion ingross receipts. That’s a substantialimpact that’s certainly worthy of theinvestments we’re making today,” saidGovernor Rendell.

Act 101 of 1988 required recyclingin Pennsylvania’s larger municipalities,required counties to develop municipalwaste management plans, and createdthe Recycling Fund, supported by a $2-per-ton tipping fee on all landfilledmaterials in the state. The proceeds fromthe fee provide grants to offset localgovernment expenses.

“This program has experiencedtremendous growth over the past 20years and continues to support our localmunicipalities. I intend to work with theGeneral Assembly to amend currentstatute to extend the recycling fee. With-out an extension the funding for thesegrants will no longer be available and

the program will effectively shut down,”noted Governor Rendell.

The Department of EnvironmentalProtection, which administers the pro-gram, has already modified its recyclinggrant programs to operate at reducedfunding levels in order to extend finan-cial support to municipal recyclingefforts for as long as possible. Even atthese reduced levels, however, fundingwill no longer be available after Decem-ber, 31, 2010, unless the fee is extended.

The following is a list by county ofthe $20 million in Recycling Develop-ment and Implementation Grantsawarded by Governor Rendell.

Adams CountyAdams County – Recycling Center

& Community Events – $97,510 Allegheny County Allegheny County – Municipal Pro-

gram & Special Event Recycling –$99,000

Crafton Borough – Yard Waste Pro-gram – $36,405

Franklin Park Borough – YardWaste Program & Curbside Recycling –$500,000

Town of McCandless – CurbsideRecycling & Yard Waste Recycling –$500,000

North Fayette Township – CurbsideRecycling – $20,900

For a complete list by county,view this article on

www.AmericanRecycler.com.

Fuel efficiency and concernfor the environment impactconsumer decisions

A new survey by Capital One AutoFinance found that when it comes toAmericans’ auto preferences, biggermay not always be better and fuel effi-ciency is in the driver’s seat. The survey,which examined drivers’ views aboutfuel efficiency and alternative motorvehicles, found that 53 percent ofrespondents said that their next car willbe more fuel efficient than their currentvehicle and 55 percent would be verylikely or somewhat likely to give up alarger vehicle for a more fuel efficientmodel.

The study also explored alternativemotor vehicles, or vehicles that run on afuel other than “traditional” petroleum,such as electric vehicles or gas-electrichybrids. While the overwhelming majorityof those surveyed do not currently own analternative motor vehicle and 76 percenthave never driven or test-driven one ofthese types of cars, nearly 80 percentbelieve they are not just a passing fad.

Alternative motor vehicles – fador future?

Just over one-third of the respondentssaid it is somewhat or very likely that theirnext car purchase will be an alternativemotor vehicle and most drivers surveyedthink they will own an alternative motorvehicle in their lifetime. Forty-two percentof survey respondents predict that in tenyears, 25-50 percent of cars on the roadwill be gas-alternative models, whilenearly 23 percent believe that over 50 per-cent of cars on the road will be alternativecars by the year 2020. In the near term,however, consumers say that pricing is theprimary factor holding them back frompurchasing an alternative motor vehicle.

Understanding new technologiesand pricing

With new technologies emerging, thestudy also found that consumers may notbe doing enough research on alternativevehicles and may be unaware of valuabletools to consider when purchasing a newcar. The United States government is cur-rently offering a tax rebate for the pur-chase of some alternative motor vehicles,

yet 41 percent of consumers surveyed didnot know about this rebate program. Ofthose who said they were likely to pur-chase an alternative motor vehicle, nearlythree-quarters have not calculated the sav-ings in gas over a traditional vehicle.

Helping consumers navigate thecar buying process

Employ the following tips to helpdrivers manage the car-buying process:

•Research different models. It’simportant for car buyers to do theirhomework and learn more about the fea-tures of different models, especially ifconsidering an alternative motor vehicle.For those who would like to save moneyon gas and are considering trading in agas guzzler for a more fuel efficient car,Edmunds.com offers a calculator thatshows how long will it take before youpay off the balance of a vehicle purchaseand begin saving money. Visitwww.edmunds.com/calculators/gas-guzzler.html

•Learn about vehicle pricing.Research new and used car prices online.Know what you can afford and use thosetarget numbers as a reference point foryour pricing information.

•Research and compare differentfinancing options. There is a range of autofinancing options available, includingdealer financing, loans from banks andcredit unions, and pre-approved no-obliga-tion online loans.

•Make sure you are comfortable withthe contract. If it’s not the price or dealyou want, be ready to walk away.

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American RecyclerPage A6, May 2010

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Choose the right casters for carts and containers You wouldn’t think of throwing

away your collection truck just becauseit had a flat tire. But that’s exactly whatpeople are doing when they throw awaya recycling collection cart, bin or con-tainer just because a caster has failed.Whether the caster failure is due to anexcessive payload, a collision with acurb or tailgate or another cause, thefailure often damages the cart’s base asthe caster tears away from the cart andrisks injuring staffers while also leavinga hospital, hotel, office or other facilitystrewn with empty bottles, crushed cansand dirty newspapers.

Since the plastic container itselfoften remains in fine condition andready for more work, replacing failedcasters and repairing the cart bases, ifnecessary, may return the cart to service.

Though not the most challengingtasks your maintenance team will face,caster replacement and its associatedrepairs take considerable amounts oftime and the cost for parts and laborquickly becomes quite substantial whileleaving carts and containers out of actionslows productivity. “Replace and repair”as an operational mantra simply invitesinefficiency and ensures your staff isconstantly diverted from their productiveresponsibilities.

Specifying the right caster in thefirst place to match the cart or container,the intended payload, the likely flooringand other operating conditions – withoutover speculating – minimizes the risk ofcaster failure and extends operational

life while promoting optimum, smoothperformance at the lowest cost.

To determine the type of casterrequired for peak performance in youroperation, a basic understanding aboutcaster construction is recommended. Acaster typically comprises a wheel setwithin a fork attached to a bolt plate.This is where the caster is attached to thebase of the cart or container via bolts,screws or other fasteners. Casters maybe rigid, meaning they roll only forwardand backward or swiveling, meaningthey rotate 360 degrees to maneuver inall directions. They are typically manu-factured of steel for maximum strength

though aluminum and plastic are alsoused for light-duty applications. Wheelsare manufactured in a wide variety ofmaterials to accommodate differenttypes of flooring and other factors. Ahuge range of bearings with a variety ofproperties ensures the wheels roll andswivel smoothly in any conditions while

a range of brakes and other accessoriesmay be added.

The most important consideration inspecifying the ideal caster is to deter-mine how much weight is to be trans-ported. Moving and hauling bulk forkliftcontainer loads of crushed glassdemands a far stronger, sturdier casterthan catching shredded office paper in aplastic bin and rolling it for consolida-tion into a larger container. The crushedglass has a high bulk density and placesample weight per given area whereas theshredded paper contains a high volumeof air (a low bulk density), until densi-fied, and, therefore, places far lessweight per given area.

Once the weight is determined, therequired load bearing rating of the castermay be calculated. For example, if 600lb. payloads of paper are to be collectedthen we recommend specifying fourcasters, each providing a caster load rat-ing at 200 lbs. for a total load bearingcapacity of 800 lbs. But isn’t that overspeculating? It isn’t because the fourcasters would only bear an equal amountof the weight when the load is equallydistributed within the cart and when thecart is standing on a flat, level surface.

Since collection carts are routinelypushed up and down ramps, we recom-mend accommodating load bearingrequirements due to shifting contents bytaking only 75 percent of the caster loadrating to arrive at the total cart load rat-ing. In this case, total caster load ratingof 800 lbs. x .75 = 600 lbs. This helpsensure that even if payloads shift insidethe cart during transport, the casterwould more than likely be able to

accommodate the increased demandwithout fail.

The primary factor in determiningthe right wheel is the flooring surface onwhich it is to roll. If a collection cart isto be used indoors over carpeting or tileand noise needs to minimized, such as ina hospital or hotel, then soft tread wheelsare recommended. Polyurethane isamong the most durable and long-lastingmaterials, but if the carts are rolled out-side in a parking lot or in a maintenancearea with concrete flooring, the wheelsare likely to pick up tiny pieces of metal,gravel, sand or other debris.

Soft rubber rolls even more quietlythan polyurethane though it costs more.For hauling scrap and other materialswhere the flooring is rough and dirty,such as on and off trucks, around scrapyards, in industrial areas and for curb-side recycling containers, we recom-mend hard rubber tread wheels.

Of the group, hard rubber stands upto the most punishing handling andweather conditions for the longest lengthof time before wearing without markingclean, indoor floors and at the lowest rel-ative cost.

Many people don’t recognize thedifference between swiveling and rigidcasters until they try to maneuver a bell-man’s cart to their hotel rooms and won-der why it either won’t turn or won’tmove in a straight line. Swiveling castersadd 360 degree maneuverability, whichis critical for rotating carts and contain-ers inside a trailer or box truck. Workerstypically spin, slide and drag carts insidethe trucks to make efficient use of the

by ROBERT [email protected]

Some collection carts feature a six-caster arrange-ment that enables it to easily roll up and over curbsand tailgates without damaging the cart.

See CASTERS, Page 9

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American Recycler May 2010, Page A7

Steel imports decrease byfive percent in February

Based on preliminary CensusBureau data, the American Iron andSteel Institute (AISI) reported that theUnited States imported a total of1,574,000 net tons (NT) of steel in Feb-ruary, including 1,214,000 NT of fin-ished steel (down 5 percent and 6percent, respectively, vs. January finaldata). Finished steel import market sharewas an estimated 18 percent in February.

Key finished steel products withincreases in February 2010 compared to

January include reinforcing bar (109percent), wire rods (45 percent) and hotrolled sheets (9 percent).

In February, the largest volumes offinished steel imports from offshorewere from South Korea (98,000 NT,down 35 percent), Japan (112,000 NT,up 38 percent), China (46,000 NT, down31 percent), Italy (48,000 NT, down 5percent) and Australia (48,000 NT, up 73percent).

U.S. IMPORTS OF FINISHED STEEL MILL PRODUCTS BY COUNTRY OF ORIGIN (Thousands of Net Tons)

SOUTH KOREAJAPANCHINAITALYAUSTRALIAINDIATURKEYGERMANYAll OthersTOTAL

FEB2010

98112464848344627

7571,214

JAN20101151

81665028342038

8181,285

2010Annual (est)

1,4911,1536781584454410396386

9,44914,993

2009Annual

1,323981

1,463323285581492495

8,23714,179

% Change 2010Annual vs. 2009

12.7%17.6%

-54.1%80.8%59.4%

-29.5%-19.5%-22.0%14.7%5.7%

Upstate Shredding gives to firefighters A structural firefighting suit costs

nearly $1,800 each and is critical to thesafety of a firefighter working near orentering a burning building. Adam Weits-man, president of Upstate Shredding LLC,donated over $10,000 to the Village of

Owego Fire Department, which is whereUpstate Shredding is located in New York.

The funds were used to purchase 6Globe G-Xtreme firefighting suits and willaid in increasing safety.

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Page 8: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

The United States House of Repre-sentatives Judiciary Committee heardfrom consumer advocates and industryexperts on why the “Access to RepairParts Act” (H.R. 3059/S.1368) – legisla-tion that would create a narrow excep-tion in the United States design patentlaw for purposes of repair – is the solu-tion to guaranteeing motorists’ access toaffordable alternative replacement partsand curbing car companies’ attempts tomonopolize the marketplace. The Qual-ity Parts Coalition (QPC), which repre-sents consumers, seniors, insurers, partsmanufacturers and distributors andrepairers, urged Congress to swiftlyenact the Access to Repair Parts Act.

Americans are likely unaware of thelooming threat that could send the costsof car repair and insurance premiumssoaring – a car company parts monop-oly. Every year, fender-benders aroundthe country leave motorists in need ofcrash parts such as bumpers, fenders andhoods.

For more than 60 years, Americanshave been able to use cost-effectivealternative parts to repair their vehiclesinstead of costly car company parts.Alternatives, while high in quality, are asmuch as 26 to 50 percent less than carcompany equivalents. This translates

into an estimated $1.5 billion in savingsfor the millions of motorists on Amer-ica’s roads. But in recent years, the carcompanies have secured an increasingnumber of so-called design patents oncrash parts for cars (bumpers, fenders,hoods). When enforced, the patents givecar companies total control of the mar-ket. Insurers warn that this loss of com-petition will drive up the cost ofinsurance premiums by as much as $3billion.

Jack Gillis, director of public affairsfor the Consumer Federation of Americaand author of The Car Book, in testi-mony on behalf of CFA, Advocates forHighway and Auto Safety, Center forAuto Safety and Public Citizen, warnedlegislators of the consumer cost of a carcompany parts monopoly: “The lack ofcompetition for repair parts will result inhigh repair costs and more vehiclesbeing ‘totaled’ because the price ofrepairing the damage exceeds the valueof the vehicle. High repair costs willlead to higher insurance premiums. Fur-thermore, when faced with expensiverepairs and a limited budget, consumersmay simply not be able to replace theirhead light or a broken side mirror, itemsessential for safe driving.”

The Access to Repair Parts Act pro-vides a narrow exception to the designpatent law, paving the way for con-sumers to continue to have access toaffordable alternative replacement partsfor their vehicles.

Identical legislation is pending inthe United States Senate (S. 1368),sponsored by Sen. Sheldon Whitehouse(D-RI). Rep. Lofgren is joined bycosponsors Reps. Rick Boucher (D-VA),Steve Cohen (D-TN), William D.Delahunt (D-MA), Sheila Jackson-Lee(D-TX), Charles A. Wilson (D-OH),G.K. Butterfield (D-NC) and DebbieHalvorson (D-IL).

American RecyclerPage A8, May 2010

Scrap Metals

MarketWatch

DISCLAIMER: American Recycler (AR) collects pricing and other information from experienced buyers, sellers and facilitators of scrap metal transactionsthroughout the industry. All figures are believed to be reliable and represent approximate pricing based on information obtained by AR (if applicable) prior topublication. Factors such as grades, quality, volumes and other considerations will invariably affect actual transaction prices. Figures shown may not be con-sistent with pricing for commodities associated with a futures market. While the objective is to provide credible information, there is always a chance forhuman error or unforeseen circumstances leading to error or omission. As such, AR is not responsible for the accuracy or completeness of the informationprovided, or for outcomes arising from use of this information. American Recycler disclaims any liability to any person or entity for loss or damage resultingfrom errors or omissions, including those resulting from negligence of AR, its employees, agents or other representatives.

1 2

3 5

4

Commodity Zone 1 Zone 2 Zone 3 Zone 4 Zone 5#1 Bushelings per gross ton $270.00 $250.00 $305.00 $285.00 $460.00#1 Bundles per gross ton 270.00 250.00 305.00 280.00 427.00Plate and Structural per gross ton 320.00 272.00 325.00 340.00 373.00#1 & 2 Mixed Steel per gross ton 320.00 270.00 305.00 329.00 356.00Shredder Bundles (t in) per gross ton 245.00 240.00 272.00 245.00 318.00Crushed Auto Bodies per gross ton 265.00 250.00 255.00 250.00 322.00Steel Turnings per pound 85.00 80.00 108.00 109.00 250.00#1 Copper per pound 3.20 2.75 3.20 3.10 3.40#2 Copper per pound 3.12 2.61 3.13 2.95 3.30Aluminum Cans per pound .70 .69 .68 .71 .82Auto Radiators per pound 2.00 1.65 1.90 1.95 2.08Aluminum Core Radiators per pound .69 .65 .69 .74 .79Heater Cores per pound 1.10 1.11 1.40 1.45 1.57Stainless Steel per pound .95 .87 1.05 .90 1.20All prices are expressed in USD. Printed as a reader service only.

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AUTO

Lincoln introducescarmaker’s first hybrid

The 2011 Lincoln MKZ Hybrid, said to be the most fuel-efficient luxury sedan in America, was featured at the2010 New York International Auto Show.

Lincoln introduced its first hybrid –the new 2011 Lincoln MKZ Hybrid – apremium midsize car poised to be themost fuel-efficient luxury sedan inAmerica.

Lincoln’s first-ever hybrid isexpected to deliver at least 41 miles pergallon in the city when it goes on salethis fall.

The new premium midsize sedanhybrid joins Ford Motor Company’sgrowing lineup of hybrids, including theFord Fusion Hybrid – 2010 North Amer-ican Car of the Year and America’s mostfuel-efficient sedan – plus the FordEscape Hybrid and Mercury Milan andMariner Hybrids.

Ford is introducing five new electri-fied vehicles by 2013. They include the

Transit Connect Electric in late 2010, theFocus Electric in 2011, a next-genera-tion hybrid electric vehicle and a plug-inhybrid electric vehicle (PHEV) in 2012,followed by another next-generationhybrid electric vehicle in 2013.

The Lincoln MKZ Hybrid’s pro-jected fuel economy tops its nearestcompetitor – the 2010 Lexus HS 250h –by 6 miles per gallon.

The 2011 Lincoln MKZ Hybriduses Ford’s second-generation hybridtechnology – the 2.5-liter Atkinson-cycleI-4 hybrid engine, named one of Ward’s2010 “10 Best Engines”.

The system combines the bestattributes of the gasoline engine andelectric battery-driven motors to deliveroptimal performance and fuel economy.

Access to Repair Parts Actprotects consumers’ right tochoose alternatives for repair

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American Recycler May 2010, Page A9

space but pay little attention to whetherthey are pushing carts fitted with swivel-ing or rigid casters.

Easy rotation offered by swivelingcasters makes it slightly more challeng-ing to maintain a straight line whenpushing or pulling. This is why thecaster configuration selected is impor-tant in achieving the desired perform-ance and longevity.

The classic bellman’s cart featurestwo swiveling casters at the corners ofone end, from where it is to be pulledand steered, and two rigid casters at thecorners of the rear end. This configura-tion combines both tracking and controlwith a stable platform that distributesloads evenly among the four casters. Incases where greater maneuverabilityis required, four swiveling casters maybe specified. These four swiveling cast-ers may be placed at the center of thefront and rear and at each side in a dia-mond configuration for even moremaneuverability, though stability maybe reduced. Light weights to be movedin tight quarters call for this type ofcaster configuration.

The recycling industry quietly runson millions of casters. At a time when

commodity prices have tumbled andcompanies are struggling for profitabil-ity, cutting cash outlays for replacementparts, ensuring your staffers arespending their time on productive tasksand eliminating day to day headachesare vital to your survival. Making sureyour recycling carts and containers arefitted with the proper casters is an easyfirst step.

Casters■Continued from Page 6

www.mallinbrotherscompany.com • (816) 483-1800Kansas City, MO

Jeffrey K. Mallin & Larry G. Mallin

82nd

Years of WireProcessing

42

AUTO

More vehicles scrappedthan added to fleet

The number of cars and light trucksscrapped in the past 15 months substan-tially outnumbers new vehicle registra-tions in the United States during thesame period, according to recent analy-sis by R. L. Polk & Co.

More than 14.8 million cars and lighttrucks were retired from the fleet betweenJuly 1, 2008 and September 30, 2009,compared to new registrations of slightlymore than 13.6 million, resulting in anoverall scrap rate of 6.1 percent. Thisincludes thousands of units scrapped dur-ing last year’s CARS program, known as‘Cash for Clunkers,’ and follows a trendseen by Polk over the past five years.

Polk also reports an increase in theaverage age of light vehicles on the road,up 21 percent in the past 14 years. Theaverage age for all light vehicles duringthe 15-month period is 10.2 years. Addi-tionally, increases in the average age aresupported by the fact that consumers arekeeping their cars and trucks longer. Asof September 2009, the average lengthof ownership for a new or used vehicleamong American consumers was 49.9months, up from 45 months a year agothe same time.

These trends are supported by anumber of factors, including the econ-omy, limited financing and leasingoptions available in the market, extendedwarranties offered by OEMs, andimproved vehicle durability and qualityof vehicles. They also provide opportu-nity for various business segments of theindustry, according to Polk.

“As vehicles age and consumerscontinue to hold onto them longer, thereare significant opportunities for repairservices and parts demand for the after-market as vehicles are falling out of war-ranty as they age,” said Mark Seng, vicepresident, sales and client services, after-market and commercial vehicle, at Polk.“The increased complexity of vehiclerepairs also presents a business opportu-nity for service professionals as tradi-tional do-it-yourself consumers are lesslikely to attempt complicated technicalwork on their vehicles.”

Polk expects conditions facing theautomotive industry to remain through2010 and expects trends for scrappageand vehicle ownership to continue for atleast another year. This assessment islargely based on current industrydynamics, coupled with Polk’s annualforecast of a moderate increase in lightvehicle sales to 11.5 million units thisyear. It also assumes a general upwardtrend for vehicle scrappage rates as highvolumes of older vehicles continue toretire from the United States fleet.

ALTERNATIVE ENERGY

FedEx expands fleet ofall-electric parcel trucks

FedEx Corp. has expanded its alter-native-energy vehicle fleet with the firstall-electric FedEx parcel delivery trucksin the United States. Four purpose-builtelectric trucks “optimized for electricoperation from the wheels up” are slatedto hit the road in the Los Angeles areastarting in June 2010, joining more than1,800 alternative-energy vehiclesalready in service for FedEx around theworld.

FedEx is purchasing its first NorthAmerican all-electric vehicles from twodifferent suppliers to evaluate the robust-ness of this technology for demandingdaily FedEx Express deliveries in theLos Angeles area and provide informa-tion to help guide future FedEx vehiclepurchases.

Two of the new all-electric truckscome from Navistar, and are beingassembled in Indiana. These are basedon the Modec design already operated

by FedEx in Europe. Ten such Modecvehicles serve FedEx routes in Londonand five more are on order for Paris.

Another pair of electric vehicles isbeing purchased from a different manu-facturer for delivery to the Los Angelesarea later in 2010. Both sets of electricvehicles are designed with a range thatallows many FedEx Express couriers tomake a full eight-hour shift of deliveriesbefore their vehicles need recharging.

By the end of June, the FedEx alter-native energy fleet will have grown to1,869 vehicles in service around theworld, helping to diversify and expandthe all-electric and hybrid-electric vehi-cle market around the globe. Beyond thenine new electric trucks to be deployedin Los Angeles and Paris, FedEx haspurchased ten additional hybrid-electricvehicles that will be added to its Califor-nia fleet throughout the spring, based inOakland.

WM signs landfill power dealNV Energy and Waste Management

announced a 20 year power purchaseagreement for the sale of renewable energyproduced from a three megawatt landfillgas powered project to be located south-east of Reno at Waste Management’sLockwood Landfill. The facility isexpected to be generating renewableenergy by late 2011.

The Lockwood Plant will use landfillgas extracted from a series of wells at thelandfill and use that gas in a state-of-the-art turbine-generator to make renewableelectricity for NV Energy customers.Waste Management currently has 115landfill gas-to-energy facilities operatingat its landfills throughout North America.

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American RecyclerPage A10, May 2010

The demand for metals is recovering from the declinesthat began in 2008. This has affected the entire metal indus-try – from recyclers to producers. While recovery has begun,the ongoing economy is still affecting the industry.

Bob Garino, Institute of Scrap Recycling Industries,Inc.’s director of commodities, offered his perspective onwhere the market has been and where it is heading.

ON TOPIC Q & Aby Irwin Rapoport

Garino: We found 2008 to be a most difficult year forthe recycling industries. Last year saw some manu-facturing and service industries react favorably com-pared to the lows experienced in the first twoquarters of 2009. However, other industries – thehousing and automotive sectors especially, lan-guished through most of 2009. The Earth PolicyInstitute has estimated, that for the first time sincethe Second World War, that more automobiles werescrapped last year than were purchased.

While 2009’s global gross domestic product (GDP)decreased by 1 percent, according to most pub-lished sources, the American GDP dropped by 2.4percent – the biggest annual rate of decline since1946. From the perspective of the metals-intensiveindustrial production sector, recovery and economicgrowth did not occur in North America, but in Chinaand India showed 8.7 and 6.4 percent GDP growthrates respectively. In fact, China should receive mostof the credit the global increase in the value of sev-eral metal and non-metallic commodities in 2009.

The United States Geological Survey noted thatdespite some “green shoots” of recovery, overalldomestic metals production declined last year to itslowest level since 2005. The ongoing recession con-tinues to curtail the domestic consumption of basicraw materials. This translated into the quantity ofmetals production falling by 7 percent and the attrib-uted value of those materials falling by 22 percent to$21.3 billion.

Has the market for raw and recycled metalsrecovered from 2008?

Garino: ISRI research determined that the nationsscrap recycling industry mirrored and exceeded thepain felt in the larger economy. This translated into a36 percent decline in value compared with 2008.The volumes of ferrous scrap processed dropped by27 percent, while major nonferrous metal volumesfell by 15 percent. Even scrap exports were affected.This sector – roughly 40 percent of the industry’soverall value, declined by 25 percent despite anincrease in volume.

Despite the declines of 2009, we see that last year’sprice trends are those of markets which are recover-ing. This has been supported by United States gov-ernment stimulus spending, Chinese demand andcurrency considerations.

It should be stressed that annual comparisons with2008 magnified the depth of the recession thatbegan at end-2007. This explains the analysis ofMacquarie Research, which determined 2009 to bea weak year for global commodity prices overall –average base metal prices falling 27.2 percent year-on-year, and steel falling 45 percent. The DowJones-UBS Commodity Index found that last year’sindex was nearly 41 percent off the peak that wasattained in 2008, despite a roughly 19 percentgrowth in 2009.

How have declines in metal consumption forraw and recycled materials affected produc-tion, consumption and prices of metals?

Garino: The processing side of the industry is a highvolume/low margin business and the scrap process-ing industries were hurt by low volumes and lowprices. Add that to credit constraints on their abilityto even buy scrap. This has really created a very dif-ficult situation for most of the companies thatprocess scrap in 2009. Although the trend for pricesin 2009 was positive, it was coming off such a lowthat when you compare the average price perform-ance for 2009 versus 2008, it was a difficult year.

It has also affected those who sell scrap to theprocessors. Scrap flows slowed down. That waspretty apparent in iron and steel for example. It’s atwo-fold problem – you have less new scrap beinggenerated as manufacturing slows and you hadlower prices that discouraged a lot of obsolete scrapfrom coming in, plus you also had a lot of scrapcome out of the woodwork in the first half of 2008,which coincided with the price peak.

How has the decline in the value of metalsaffected the profitability of firms large andsmall, and how have declines in revenuesaffected the ability of these firms to purchasematerials at a low price and build up stockpilesto be ready for a market recovery?

Garino: We do not forecast, but do look at the met-als intensive manufacturing component of industrialproduction as an indicator. The number comes outevery month and there is a very high correlation withthat index matched against prices, whether it is theLME Index, the Commodity Research Bureau Indexor even our own ISRI Scrap Metal Index. As theindexes go, so do prices and we would expect to seeindustrial production continue positive. What we areseeing now, looking back to between 2007-2009, isa cyclical downturn, but at the same time, the secu-lar trend (long-term) is very positive and will be formany years to come. For the most part, we havegotten through the cyclical downturn.

We realize that this is a difficult time for the industry,but recyclers and processors have to realize thatthey are in it for the long-haul. It’s just a matter ofmaintaining proper diligence in costs and that bestpractices are more important than ever.

Where do you see the metals market in the nextthree years? Are there any trends that peopleshould note?

Precious metals led last year’s overall index, butbase metals such as copper also made a contribu-tion. This was reflected in the LME Index price forcopper, which averaged $1.48/lb. in January 2009and increased steadily throughout most of 2009. ByDecember the price increased by 115 percent to anaverage price of $3.18/lb. While other metalsregained considerable ground in terms of value, itwas not an across-the-board affect, which wasclearly demonstrated by the American steel industry.

The LME Index rose an astonishing 87 percent overlast year on slightly lower trading volumes, withnoticeably higher LME-held inventories for the sixmajor nonferrous metals traded on the exchange.Credit for this should be given to China’s insatiabledemand for base metals.

—Bob Garino

Henry A. Wiltschek Inc.hawiltschek.com

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ALTERNATIVE ENERGYVirent and Shell start firstbiogasoline production plant

Virent Energy Systems, Inc., andShell announced the successful start ofproduction at the world’s first demon-stration plant converting plant sugarsinto gasoline and gasoline blend compo-nents, rather than ethanol.

The demonstration plant, located atVirent’s facilities in Madison, Wiscon-sin, is the latest step in a joint biogaso-line research and development effort,announced by both companies in March2008. The demonstration plant has thecapacity to produce up to 10,000 gallonsper year, which will be used for engineand fleet testing.

This new biofuel can be blendedwith gasoline in high concentrations foruse in standard gasoline engines. Thenew product has the potential to elimi-nate the need for specialized infrastruc-ture, engine modifications, and blendingequipment necessary for the use of gaso-

line containing more than 10 percentethanol.

Virent’s patented BioForming® plat-form technology uses catalysts to con-vert plant sugars into hydrocarbonmolecules like those produced at a petro-leum refinery. Traditionally, sugars havebeen fermented into ethanol and dis-tilled. Virent’s ‘biogasoline’ fuel mole-cules have higher energy content thanethanol and deliver better fuel economy.They can be blended seamlessly to makeconventional gasoline or combined withgasoline containing ethanol.

The sugars can be sourced fromnon-food feedstocks such as corn stover,wheat straw and sugarcane pulp, in addi-tion to conventional biofuel feedstockssuch as wheat, corn and sugarcane. Thedemonstration plant is currently usingbeet sugar.

Georgia Power partners withWM on renewable energy

Georgia Power recently signed along-term contract with Waste Manage-ment that will produce electricity fromlandfill gas. This contract will take effectafter Georgia Public Service Commis-sion approval.

Georgia Power and Waste Manage-ment Renewable Energy LLC enteredinto a 10 year deal for electricity thatwill be generated from everyday house-hold trash. The power will come fromWaste Management’s new energy-gener-ating facility at its Superior Landfill andRecycling Center in Savannah, Georgia.

According to Environmental Protec-tion Agency data, the facility developedby Waste Management is among thelargest in Georgia and the Southeast.The methane gas used to make electric-

ity comes from natural decomposition ofthe garbage disposed at the landfill.

The agreement will provide GeorgiaPower with 100 percent of the renewableenergy annually from Waste Manage-ment’s 6.4 megawatt facility in Savan-nah, Georgia, as well as the associatedrenewable energy credits. One megawattis enough energy to supply a Super Tar-get store or approximately 250 Georgiaresidences.

Georgia Power selected Waste Man-agement from a number of independentrenewable generators who submittedbids through the company’s greenrequest for proposals issued in April2009. The energy from Superior Landfillwill be used to help grow GeorgiaPower’s Green Energy program.

We’ve

Moved!

This is official notice

of our new address!

Please record the new

address on the reverse

side as well as our new

telephone numbers.

To ensure you continue receiving your copy of Amer-ican Recycler, please notify us as soon as you haveyour forwarding information available.

Send changes to Circulation, American Recycler, 900 W South Boundary Bldg 6, Perrysburg, OH 43551or visit AmericanRecycler.com to update your subscription.

Moving soon?

Metals market ponderings

Page 11: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

Of the four billion wireless sub-scribers in the world, only one percentof them recycle their handsets. In theUnited States alone, 130 million phonesare retired each year. The global e-wasteproblem is substantial and growing, andis the target of eRecyclingCorps, a newDallas-based company. The companywill help carriers buy back used hand-sets from consumers and ensure they areresold or responsibly recycled.

eRecyclingCorps is transformingthe wireless device ecosystem by work-ing with carriers to establish comprehen-sive buy-back programs that arecustomized and scalable. The companydeploys a web-based platform that inte-grates directly into the point of sale sys-tem at carrier retail stores, where 60percent of all phones are sold. It makesvaluable consumer trade-in incentives,efficient in-store collection and strictprivacy controls an integral part of everynew phone purchase. By partnering witheRecyclingCorps, carriers can reclaimsubsidies, increase customer loyalty, andsignificantly reduce downstream e-waste.

Sprint, the first carrier to use eRecy-clingCorps, has deployed the system in1,100 company owned Sprint stores and1,400 Sprint Preferred Dealers andthrough its online channels. Sprint’s buy-back program gives customers an instantaccount credit for trading in eligible wire-less devices. Sprint has announced an

ambitious goal to achieve a wireless reuseand recycling rate of 90 percent as com-pared to device sales by 2017.

eRecyclingCorps was co-foundedby David Edmondson, who is CEO and

was previously CEO of RadioShack.Co-founder Ron LeMay is chairman,and he was formerly president and COOof Sprint.

Company formed to recycle cell phones

American Recycler May 2010, Page A11

Fast, Safe, Impact-Free Filling of ContainersSTECO Scrapper® CL20 is an innovative, complete container loading system designed to safely and quickly load 20-foot standard overseas shipping containers to their maximum capacity while minimizing damage to container walls or floors. The two-part system is comprised of the transfer-trailer base and the container packer/loading sleeve (CL unit).

Trailer-mounted for easy transport Self-contained with own diesel-powered unit, leveling jacks, weight scale

Stable, heavy-duty for quick set-up Top load with any kind of loader It’s the CL unit that takes the brunt of impact, not the container

Customizable for more than scrap use

while minimizing damageo their maximtainers tonc

erseasvd oot standaro20-fely and quo safdesigned t

tainer loadinone completcer® CL20 is aappcrO SSTEC

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ENERGY

OriginOil, Inc., the developer of atechnology to transform algae into acompetitor to petroleum, announced theformation of an industry working groupto develop jet fuel from algae usingwaste streams. The group will start bydeveloping integrated process models toidentify the critical technologies needed.

The working group is co-sponsoredby OriginOil and the non-profit consor-tium Electricore. The first industry part-ners are biodigester builder BiogasEnergy and ionic technology developerCeramatec. More partner announce-ments are expected in the weeks tocome.

The initiative is a result of OriginOil’songoing effort to develop cost-effectivealgae production. The company previouslyreported on the use of waste streams as afeedstock for algae cultivation.

OriginOil tomake jet fuel

Envirepel Energy, Inc. (EEI), a pri-vately held company in Vista, California,reopened its first Renewable EnergyFacility (Kittyhawk) in April, after tem-porarily closing it in June 2009 toaddress a shareholder proxy effort.

The Kittyhawk Project is a 2.5 MWbiomass fueled power generating facil-ity, with additional bio-fuel productionfrom recovered water and CO2.

Over the past six years, EEI hasdesigned, developed, manufactured andbuilt the first low emissions combustionsystem. This ultra low combustion sys-tem consumes urban waste that wouldnormally go in a landfill, and also hasthe capacity to consume high sulfur coal,tires, animal waste and many other “bio-mass” feed stocks that would pose a sig-nificant pollution problem to otherpower generating, or bio-fuel productionfacilities.

Envirepel reopensrenewableenergy facility

Ontario is investing $4 millionthrough the Innovation DemonstrationFund (IDF) to help Woodland BiofuelsInc. and its partners build a demonstra-tion plant that will efficiently producecellulosic ethanol from renewablewastes.

The plant will use Woodland’spatented technology, which can producesustainable fuels from virtually any typeof biomass, including wood waste andagricultural waste. The technology gen-erates no toxic emissions and eliminatesthe need to use food, such as corn, toproduce ethanol.

The plant is expected to be locatedat the Bioindustrial Innovation Centre, inthe University of Western Ontario’s Sar-nia-Lambton Research Park.

Woodland Biofuelsawarded $4 million

ELECTRONICS

Through a new electronicsrecycling certification pro-gram, the United States Envi-ronmental Protection Agency(EPA) is taking steps to ensurethat electronics recyclersadhere to highly protectivestandards for workers and theenvironment in processing pre-owned electronics.

This new certificationprocess also means that recy-cled materials will not beshipped overseas without theconsent of the designatedcountry.

Three companies nation-wide have received this newdesignation – called Respon-sible Recycling PracticesCertification. The first, andonly certified recycler in themid-Atlantic region is E-structors, Inc. of Elkridge,Maryland. TechTurn ofAustin, Texas, and WasteManagement of Minnesotawere also certified as elec-tronic recycling firms.

E-Structors, founded in2003, operates primarily on acontractual basis with organi-zations that have significantvolumes of pre-owned elec-tronics to recycle. As a certi-fied recycler, the companyfollows a business model ofreuse, refurbishment andrecycling of electronics.

The protocols requiredof certified recyclers help toreduce energy and naturalresource consumption, green-house gases and hazardouswaste. Recyclers are not per-mitted to burn or landfill cer-tain materials.

If electronics are goingto be sold for reuse, the recy-cler must show that all per-sonal data has been cleared ordestroyed, that the equipmenthas been tested and is inworking condition, and thatthe equipment is packagedproperly. A recycler mustexercise due diligence toensure appropriate manage-

ment of the materialsthroughout the recyclingchain, whether domestic orinternational.

To apply for certifica-tion, electronics recyclersshould contact either SGSor Perry Johnson Registrarsto receive certification, pro-vided they meet the rigorouscertification standards. Both

SGS and Perry JohnsonRegistrars are inspection,verification, testing and certi-fication companies.

As accredited certifyingbodies for certification, SGSand Perry Johnson Registrarsare required to list companiesthey have certified on theirrespective websites.

EPA certifies first electronics recyclersPHOTO COURTESY OF ELECTRONIC RECYCLERS

Certified recyclers follow defined protocols to reduce energy consumption andto handle hazardous waste properly.

The fact is, that to do anything in theworld worth doing, we must not standback shivering and thinking of the coldand danger, but jump in and scramblethrough as well as we can.

—Robert Cushing

Page 12: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

You can write off 100% of the cost of a new

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Page 13: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

DADE Capital Corp.

800-823-9688Perrysburg, OH

Visit DADECapital.com for acomplete list of current equipment

and more photos.

Shredder box, rotor, and infeed ramp. Walls are 4", rotor is 80%. $290,000 NEWELL SHREDDER 98 X 104

Stationary electric shear logger baler with (2) 100hp motors. Low hours, very good condition and was always operated indoors. $550,000

2005 SIERRA 700TON SHEAR LOGGER BALER

With new automation and remote. Very nice condition. $28,5001989 ALJON MODEL 20 CAR CRUSHER

Very good condition. Machine and shear 6,000 hours. $150,0001997 KOMATSU PC 300LC W/ LABOUNTY MSD 70

5-tine grapple included. Operates well and is in good condition. $105,0001994 ALJON 400 METAL BALER WITH GRAPPLE

In good condition. A real workhorse. One new cylinder, diesel. $35,0001981 MAC STATIONARY CAR CRUSHER

With new 10Kw gen-set. $97,5002002 LIEBHERR A914

Under 900 hours. Perfect condition, call to arrange a demo. $275,0002008 ALJON MODEL 400XL METAL BALER

12,000 hours, 50' reach, generator, grapple and rebuilt engine and pump. $175,000 2000 SENNEBOGEN 830M

In very, very nice condition. Gas motor, manual operation. $55,0001989 EZ CAR CRUSHER B MODEL

With grapple and magnet. Excellent condition. $170,0002004 JOHN DEERE 200LC MATERIAL HANDLER

Excellent condition, loaded. 3,500 hours, housed indoors. $98,0002004 MAC QS CRUSHER

Completely REBUILT with many NEW Components. Dismantled and immediately available. Price reduced! $4,600,000

2004 TEXAS 80 X 104 AUTO SHREDDER

With curing chambers, buffers, tread builders, forklift, applicators, pumps, etc. $65,000COMPLETE TIRE RETREADING SHOP

Good operating condition, portable with crane. $78,5001998 EZ METAL BALER

Page 14: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,
Page 15: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

The recycling of plastic bags andfilm reached a record high across theUnited States in 2008, continuing agrowing national recycling trend.

An estimated 832,394,000 poundsof post-consumer film (including plasticbags and product wraps) were recoveredin 2008, according to the latest NationalPost-Consumer Recycled Plastic Bagsand Film Report. This represents a 28percent increase in bag and film recy-cling since 2005.

The boost in recycling was drivenby greater consumer access to collectionprograms, primarily at large grocery andretail stores, as well as by new marketsfor these recycled materials.

The recycling report was conductedby Moore Recycling Associates, Inc. ofSonoma, California, based on informa-tion obtained from 79 domestic proces-sors, end-users of film material andexporters. The recycling numbers

reported likely understate actual bag andfilm recycling because export data ismore difficult to obtain than data ondomestic recycling, and in 2008 therewas a shift toward export markets,according to the report. Data collectionalso was affected by the rapid spike inthe number of collection programs asmany stores launched new programs torecover post-consumer plastic bags andproduct wraps from their customers.There are now retail store collection pro-grams in all 50 states.

The increasing number of bag andfilm recycling programs are being led, inpart, by plastic bag makers. Last year,the Progressive Bag Affiliatesannounced a landmark recycling goal of40 percent recycled content in all plasticshopping bags made by these companiesby 2015.

To help reach that goal, plastic bagmaker Hilex Poly expanded its recycling

operations in North Vernon, Indiana. Inaddition, California, New York, RhodeIsland and Delaware along with somemajor jurisdictions including Chicagoand Tuscon have added new lawsrecently requiring stores to take-backplastic bags and film for recycling.

According to Environmental Pro-tection Agency data, about 13 percent ofplastic bags and film are recycled annu-ally. While composite lumber continuesto be the major market for recycled plas-tic bags and film, 2008 saw a notableincrease in international demand forscrap plastic film.

Plastic bag and film recycling hits record

American Recycler May 2010, Page A15

PLASTICS

Business to buy post-consumer PLABIOCOR LLC announced its

launch as a new venture in the businessof buying, aggregating and processingpost-consumer Polylactic acid (PLA),the 100 percent plant based bioplastic,seeing broad and growing interest in avariety of plastics markets. BIOCORwill capitalize on the ease with whichPLA can be converted back to its origi-nal lactic acid feedstock for subsequentuse in a variety of existing end markets

Executive director Mike Centersexplained that BIOCOR will pay recy-clers an economically attractive price for

PLA in any packaging format and workwith recyclers to achieve efficient sepa-ration of post-consumer PLA from otherplastics. BIOCOR provides recyclerswith a market for any post-consumerPLA they process. BIOCOR will alsocollaborate on PLA recycling pilot proj-ects and work with federal, state, andmunicipal entities, non-governmentalorganizations, consumer groups, andrecycling organizations.

Unlike most petroleum-based plas-tics today, bioplastics such as PLA offermultiple end-of-life scenarios. For

example, PLA offers a true “cradle-to-cradle” end-of-life option whereby PLAcan be completely converted back intoits fundamental building block, lacticacid, and then reformulated into abiopolymer. PLA can also be commer-cially composted and used for soilenrichment. BIOCORE’s primary focusis on supplying recycled PLA to thoseinterested in lactic acid uses.

Located in Concord, California,BIOCOR is currently hiring staff andscaling up its infrastructure to addressthe North American market.

For a direct link to the completereport, view this article on

www.AmericanRecycler.com.

NEWS YOU TAKE WITH

YOU, NO MATTER WHERE YOU GO 877-777-0737

AR

SUBSCRIBETODAY

The Plastics Environmental Divi-sion of the Society of Plastics Engineers(SPE) announced the recipients of theGlobal Plastics Environmental Confer-ence (GPEC) 2010 EnvironmentalStewardship Awards.

The award recipients include:Chairman’s AwardNicos Polymers Group, Nazareth,

Pennsylvania – For a proprietaryprocess for the removal of continuousfiber reinforcement from flexible com-posites, making possible the cleanestrecovery of the valuable polymer sub-strate.

Daniel Eberhardt EnvironmentalStewardship Award

Delta Plastics of the South, LittleRock, Arkansas – Having achieved itsgoal of reclaiming and recycling 100percent of its used manufacturedLLDPE irrigation tubing, Delta Plasticsis now recycling a large portion of com-petitors’ tubing and an additional1,436,000 pounds per month of miscel-laneous LDPE products into certifiedpost-consumer resin.

SPE choosesrecipients of2010 awards

For a list of recipients and detailsabout the awards, view this article on

www.AmericanRecycler.com.

Page 16: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

The model SEP5 sepshear separates and shears the aluminum or copper

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by Ron SturgeonAutosalvageconsultant.com

Salvaging Millions

We never stop learning. I am proudto say that since I wrote my first book,How To Salvage Millions from YourSmall Business, in 2001, I’ve learned somuch more about business.

Of course, I sold my auto salvageoperations to Ford Motor Co almost adecade ago (can you believe it?), wenton to complete an oversubscribed pri-vate stock offering to fund the startup ofa world-class salvage auction in FortWorth, selling it to Copart only threemonths after it opened.

Since then, countless speaking andconsulting engagements have taught meso much. And my recent venture, rent-ing exotic cars has helped me to learn allabout the Internet and search engineoptimization.

One of the most important thingsthat I have learned is about strategicplanning. Strategic planning is some-thing that most small businesses justdon’t do. In their defense, they aren’tgood at it, and frankly, they are shot outof bed on a rocket and don’t have ormake the time to do it right.

Unfortunately, not planning prop-erly ends up costing many small busi-nesses dearly because they fail to directtheir efforts at those things with the

largest payoff and they waste time doingthings that sound planning would dropfrom their do-lists.

There is no substitute for goodplanning. Do you already have yourwritten plan in place for this year? Areyou executing it? Are you cycling backover and over to consider where you areversus where you said you would be? Ifyou aren’t where you want to be, I hopeyou’re considering the best way to getyourself back on course.

Soon, 2010 will be over, ancienthistory. Plan now, and make this yearyour best one ever. Early in my businesscareer, I learned that unless you plandoing more of what you have beendoing only gets you more of whatyou’ve been getting.

If you don’t have your planningdone yet, open your calendar and setaside the time with your key people toproduce a written plan for the rest of theyear. Be sure to include measurablegoals and deadlines. Do it today andbegin charting the direction of yourbusiness, rather than responding toevents.

I would love to hear from youabout the difference your strategic planis making for your business. Start today!

How to salvage more millionsfrom your small business

Remember, only you can make BUSINESS GREAT!This article was provided by autosalvageconsultant.com, which was formed in 2001 by

recyclers for recyclers, to help them improve their businesses.

Page A16, May 2010 American Recycler

INTERNATIONALAir Products’ technologypowers South Korean vehicles

Air Products has signed a contractwith SK Energy to construct a hydrogenfueling station for a novel energy projectto be based in World Cup Park in Seoul,South Korea. The hydrogen fueling sta-tion to be onstream in July 2010 willsupply hydrogen produced solely fromlandfill gas to fuel a fleet of vehicles.The project is part of Seoul’s push to usealternative supply means to generate 10percent of its energy consumption by2020, and to use hydrogen for 30 percentof the switch.

Air Products’ compression, storageand dispensing technology will fuel hydro-gen powered fuel cell buses for publictransit initially, and a small fleet of carstargeted to increase to as many as 100 pub-lic use vehicles. World Cup Park is a com-bination of several small parks adjacent toWorld Cup Stadium, site of the 2002 FIFAWorld Cup. The location has been selectedfor several eco-friendly projects includinga “zero-energy house” completely pow-ered by solar energy and other environ-mentally-friendly energies.

Metso sells German Flexowellconveyor belt operations

Metso sold its Flexowell conveyorbelt operations and related assets inMoers, Germany, to ContiTech Trans-portbandsysteme GmbH. Flexowelloperations consist of conveyor belts andsystems for bulk material handling, andit is part of Metso’s Mining and Con-struction Technology segment. Conveyorbelts and bulk material handling systemswill continue to be an essential part ofMetso’s offering to mining and construc-

tion industries also in the future. Thesale is part of Metso’s strategy todevelop and simplify current productionnetwork, the aim of which is to improvethe competitiveness of the business andto further develop customer service. Thefinal closing will require relevant regula-tory approvals. The sale will have nomaterial impact on Metso’s financialperformance.

PAPER

According to the American Forest& Paper Association’s February 2010Kraft Paper Sector Report, total Kraftpaper shipments were 113 thousand tonsthis month, a decrease of 15.5 percentfrom previous month.

The February total shipments roseby 4.2 percent compared with the samemonth last year. Total inventory were5,900 tons less than January 2010.

February 2010kraft papersector report According to the American Forest

& Paper Association’s February 2010United States Containerboard StatisticsReport, total containerboard paperproduction again rose sharply whencompared to February 2009. Total pro-duction saw an increase of 208,400tons or 8.9 percent over same monthlast year. For the two months of2010, production has been 13.9 percentover 2009.

AF&PA’s Februarycontainerboardreport

Toronto-based Atlantic PackagingProducts is closing its recyclednewsprint plant located in Whitby,Ontario.

According to Atlantic Packaging, acombination of the decline in newsprintdemand, the rising value of the Canadian

dollar and the increased costs for rawmaterials gave it no choice but to closethe facility.

The closing will affect 151 employ-ees at the plant which was Canada’s first100 percent recycled newsprint manu-facturer.

Atlantic Packaging closes Ontario plant

Kimberly-Clark Corporation reportedthat net sales in the first quarter of 2010increased 7.6 percent to $4.8 billion,including an approximate 5 percent benefitfrom stronger foreign currency exchangerates. Organic sales rose 2 percent, withsales volumes and net selling prices eachup 1 percent. The combined impact of theI-Flow Corporation and Jackson Safetyacquisitions added an additional point ofsales growth in the quarter. The organicvolume growth was highlighted by an 8percent increase for the company's globalHealth Care business and a 5 percent gainfor K-C's international operations in Asia,Latin America, the Middle East, EasternEurope and Africa.

Diluted net income per share for thequarter was $0.92 and adjusted earningsper share were $1.14 compared withdiluted net income per share of $0.98 in

2009. Bottom-line results were favorablyimpacted by the growth in net sales,improved gross margin of more than 150basis points and a lower level of foreigncurrency transaction losses. On the otherhand, strategic marketing spendingincreased by $60 million in the quarter tosupport the Company's product innovationactivities and targeted growth initiatives.In addition, the Company's effective taxrate in the first quarter was significantlyhigher than the year-ago period, includinga one-time charge equivalent to 5 cents pershare related to recent changes in tax lawregarding health care reform legislation.

Adjusted earnings per share in 2010exclude an after tax charge of $96 millionfor the remeasurement of the local cur-rency balance sheet in Venezuela as aresult of the adoption of highly inflation-ary accounting in January 2010.

Kimberly-Clark reports quarterly results

Sappi Fine Paper launches eQ ToolAs part of Sappi Fine Paper North

America's ongoing commitment to sus-tainability, Sappi announces the launch ofits eQ Tool – an interactive online tool thatallows you to explore a full range of fac-

tors behind choosing a sustainable paper.The eQ Tool explores the best use of recy-cled fiber. To develop the eQ Tool, Sappiworked with IDEO, a global design andinnovative consultancy.

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May 2010, Page A17American Recycler

WASTE

California EPA assessestoxicity in Kettleman City

The California Environmental Pro-tection Agency (Cal/EPA) released itsdraft exposure assessment outline forKettleman City and discussed the planwith residents at a community meeting.

The draft exposure assessment out-line details how Cal/EPA and its boards,departments and office will proceed withtesting of soil, air and water around Ket-tleman City. In developing the docu-ment, Cal/EPA scientists identifiedchemicals potentially found in Kettle-man City that may cause birth defects, aswell as possible sources of those chemi-cals. They are also developing plans forsampling and analyzing those chemicals.

Scientists from Cal/EPA’s Office ofEnvironmental Health Hazard Assess-ment, Air Resources Board, Departmentof Pesticide Regulation, State WaterResources Control Board and theDepartment of Toxic Substances Controlhave developed a list of 28 chemicalsthat should be tested for in KettlemanCity. The list contains industrial chemi-

cals and pesticides, as well as arsenic,which is naturally occurring in the area.

Cal/EPA will examine the potentialsources of the chemicals from presentand past activities including the Kettle-man Hills hazardous waste disposalfacility; agricultural operations; natu-rally occurring contaminants, industrialand legacy petroleum sources; illegaldumping; and arsenic in the drinkingwater.

This effort is in response to Gover-nor Arnold Schwarzenegger’s requestthat the California Department of PublicHealth and Cal/EPA take aggressiveaction to investigate birth defectsreported in Kettleman City. The depart-ments are coordinating their investiga-tive efforts.

Cal/EPA will finalize the exposureassessment workplan and in April willbegin collecting soil, air and water sam-ples around the community. A finalreport to the community should be com-pleted by November.

Included in the tests will be the Kettlemanhazardous waste disposal facility

Republic Services deploys226 natural gas vehicles

Republic Services announced that20 percent of the trucks it is adding to itsfleet in 2010 are natural gas vehicles(NGV).

In April, the Company added 226NGV trucks to 10 facilities in its West-ern region. Republic’s Allied Wastedivisions in Gardena, Sun Valley, Ana-heim, Long Beach, Pacheco and ChulaVista, California; Bellevue and Kent,Washington and Boise, Idaho receivedthe vehicles.

The Company will support thismajor fleet upgrade by constructingcompressed natural gas fueling stationsat Gardena, Sun Valley and Chula Vista,California, and Bellevue, Washington.Clean Energy will facilitate the design

and construction of the new fuelinginfrastructure.

The addition of 226 NGVs willbring the total number of Republic’salternative fuel vehicles to more than459 vehicles.

Of the 226 NGVs, 173 are com-pressed natural gas and the remaining 53are liquefied natural gas. The terms liq-uefied and compressed refer to themethod of storage on the vehicle. Tradi-tionally, liquefied natural gas is stored asa cryogenic liquid in a single tank andcompressed natural gas (CNG) is storedin multiple high-pressure tanks. Vehiclechassis are built by Autocar and theengines by Cummins Westport.

Smurfit-Stone will operateEmerald Waste recycling facility

Smurfit-Stone Container Corp. willpartner with waste management com-pany Emerald Waste Services (EWS) tooperate their materials recycling facility(MRF) and transfer station inGainesville, Florida.

Smurfit-Stone, which producespaper and paperboard products, has alsodeveloped an expertise in recycling, ini-tially to help feed its own mills. Lately,the company has signed similar partner-ships with other regional waste manage-

ment firms including Advanced Dis-posal, Jacksonville, Florida, and WasteServices, Inc. to help them maximize theefficiency of their MRFs in select mar-kets.

These partnerships can be seen as aresponse to the increasing complexity ofthe business of materials recovery withits price volatility, economies-of-scale,capital expenditures, and specializedknowledge needed to operate more effi-ciently.

Veolia Environmental achievesOSHA’s VPP Star Status at refinery

Veolia ES Industrial Services Inc.’son-site program at Marathon PetroleumCompany LLC in Robinson, Illinois hasbeen accepted into OSHA’s VoluntaryProtection Program (VPP).

OSHA recognized Veolia’s Bridge-port Core and Ashland Separationsgroups for its outstanding efforts inachieving exemplary occupational safetyand health compliance. Veolia’sMarathon Petroleum on-site programjoins the VPP at the Star Award level, thehighest level granted.

Veolia ES Industrial Services’ on-site program at the Marathon Petroleumfacility was recognized for achievingand maintaining five VPP best practicesduring the OSHA audit. These included

a Safety Opportunity Shared (SOS)form, Act Now for Safety Program,employee safety perception survey,behavioral-based safety observationsand new hire orientation.

In addition to the VPP Star achieve-ment at the Marathon facility, two of thecompany’s on-site programs for ValeroEnergy Corporation have receivedOSHA’s ‘Star among Stars’ award. Veo-lia ES Industrial Services’ teams at Cor-pus Christi and Three Rivers, both inTexas, have been given OSHA’s RegionVI “Star among Star” award for havingan incident rate 90 percent below theBureau of Labor Statistics’ (BLS) ratefor their industry.

Rumpke landfill to pay air violation fineThe Ohio Environmental Protection

Agency and Rumpke landfill havereached a settlement agreement for anair quality violation fine.

The agreement requires the ownerto pay a $98,000 penalty for air pollutionviolations and follow an action responseplan, including such measures as addingclay soil, stabilizing landfill slope,

installing additional gas collectiondevices and enhancing monitoring.

Paul Ruesch, an environmentalengineer with the Environmental Protec-tion Agency, addressed the undergroundheat readings, indicating that although itwas unclear whether they indicated anunderground fire or a “reaction,” thedynamic was the same.

A lawyer named Strange died. Hisfriend asked the tombstone maker toinscribe on his tombstone, “Here liesStrange, an honest man and a lawyer.”The inscriber insisted that such aninscription would be confusing, for peo-ple would tend to think that three men

were buried under the stone. However,he suggested an alternative. He wouldinscribe, “Here lies a man who was bothhonest and a lawyer”.

“That way, whenever anyone walkedby the tombstone and read it, they wouldbe certain to remark, ‘That’s Strange’.”

Life is measured in time: BC and AC. That, to me, means “before children” and“after children”.

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PAGE ADVERTISERA5 AABCON

A19 Air & Waste ManagementA17 Aluminum KingA8 American Forklift Scale LLC

A16 ARPIA6 BenleeA15 Buffalo TurbineA4 Call ShaughnessyA9 Caster Ranch

A13 DADE CapitalB Cover Excel Manufacturing

A7 Flip ScreenA14 Government LiquidationA7 Granutech-Saturn SystemsB7 Heartland Aluminum, Inc.

A3, A10 Henry A. Wiltschek Inc.A2 Hustler Conveyor Company

A23 Iron Ax, Inc.A5 Jordan Reduction SolutionsA8 Kettle CreekB4 Komar Industries, Inc.B3 M Lipsitz & CompanyA9 Mallin Bros. Co., Inc.A2 Maurer ManufacturingB5 Metso Texas ShredderA3 Moley Magnetics

A18 NE Resource Recovery Assoc.A24 OverBuilt, Inc.B7 Recycling Services Intl.

A12 RM JohnsonA4 Rockland Manufacturing

A11 StecoA15 Super Shear

ADVERTISER INDEX

BUSINESS BRIEFS

EventsCalendar

May 3rd-6thWaste Expo 2010. Georgia World Congress

Center, Atlanta, Georgia.

800-927-5007 • www.wasteexpo.com

May 4th-8thAnnual ISRI Convention and Exposition.

San Diego Convention Center, San Diego,

California.

919-563-5291 • www.isriconvention.org

May 16th-19thFederation of NY Solid Waste

Associations Solid Waste & Recycling

Conference with Trade Show. The

Sagamore, Bolton Landing, New York.

631-288-2480 • www.nyfederation.org

June 7th-8thNRRA’s 29th Annual Recycling

Conference & Expo. Radisson Hotel,

Manchester, New Hampshire.

800-223-0150 • www.nrra.net

June 22nd-25thAir & Waste Management Association’s

103rd Annual Conference & Exhibition

(ACE). Calgary Telus Convention Centre,

Calgary, Alberta, Canada.

800-270-3444 • www.awma.org

August 15th-17thWASTECON 2010. Boston Convention and

Exhibition Center, Boston, Massachusetts.

800-467-9262 • www.wastecon.org

September 13th-15th20th Annual Arkansas Recycling

Conference & Trade Show. The Robinson

Center, Little Rock, Arkansas.

866-290-1429 • www.recyclearkorg

November 3rd-4thCanadian Waste & Recycling Expo.

International Centre, Toronto, Ontario

877-534-7285 • www.cwre.ca

Page A18, May 2010 American Recycler

Oakleaf is implementing significantupgrades for spring, 2010. The com-pany-wide improvements are focused onthree core areas: business process, oper-ational logistics and service consistency.Employee meetings, work sessions andplanning groups created both the visionfor the upgrades and the momentum forchange.

Changes include the addition ofMario Harik and George McGinn.

Harik is the new chief informationofficer. Harik joined Oakleaf in early2009 as the senior vice-president,research and development.

Harik’s IT knowledge began as anundergrad at the American University ofBeirut, where he earned a degree inComputer and Communications Engi-neering, followed by an ME in Informa-tion Technology from MIT.

Prior to joining Oakleaf, Harik waschief technology officer at Tallan,a nationwide professional servicesfirm focusing on enterprise-scale soft-ware systems implementation andintegration.

Oakleaf also welcomed GeorgeMcGinn who will serve as executivevice president – Legal and GovernmentAffairs. In September 2009, McGinnjoined as a consultant for New Moun-tain Capital, backers of Oakleaf.McGinn was also a partner in the lawfirm Bass, Berry & Sims, PLC inNashville and EVP, general counsel forPhysician Reliance Network in Dallas,Texas.

Oakleaf makesmanagement changes

Metso Corporation’s board of direc-tors elected members among the boardfor the audit committee and remunera-tion and HR committee at its assemblymeeting.

The board’s audit committee con-sists of Pia Rudengren (chairman),Maija-Liisa Friman and Erkki Pehu-Lehtonen.

The board’s remuneration and HRcommittee consists of Jukka Viinanen(chairman), Mikael von Frenckell, ChristerGardell and Yrjö Neuvo.

Metso board committeesmembers elected

Michael W. Bohn has been promotedto vice president, corporate planning, forSeverstal North America.

He succeeds David A. Howard whowas named vice president and generalmanager at Severstal Sparrows Point.

In his new capacity, Bohn will leadSeverstal North America’s efforts toimprove efficiencies among all operations,focusing on various business systems andprocesses that affect coordinated produc-tion and delivery to the customer.

Bohn most recently served as generalmanager of corporate information technol-ogy for Severstal North America. Hejoined the company in 2008 at its SeverstalColumbus, Mississippi, facility as man-ager of planning and logistics.

A steel industry veteran with 34 yearsof experience, Bohn also worked with Mit-tal Steel, Acme Steel and McLouth Steel.

Michael Bohn named VP,planning for Severstal

Hurco Companies, Inc., announcedthat Gerhard Kohlbacher has beenelected to the board of directors andJohn P. Donlon has been named execu-tive vice president of Worldwide Salesand Service, according to a Hurcospokesperson.

Kohlbacher advanced to presidentof Hurco GmbH in Munich, Germany,during his 28 year career. Under hisleadership, Hurco GmbH developedmarkets in former eastern bloc coun-tries and consistently maintained prof-itability throughout his organization.

Donlon has 30 years of experiencein executive leadership positions formulti-national corporations involved inprocess, automation and control tech-nologies. Most recently, Donlon wasvice president of United States sales forMotoman Inc., a subsidiary of Yaskawa.He has extensive international experi-ence and a track record of increasinginternational sales by restructuringstrategic organizations and developingcollaborative partnerships in key mar-kets. Donlon has held executive posi-tions at Image Guide, Inc., AlstomS.A., Honeywell and Asea BrownBoveri.

Hurco makes companyleadership changes

Liquid Environmental Solutionsannounced the election of Bruce Ranck asnon-executive chairman of the board ofdirectors. Ranck has been a board membersince 2003 and will provide leadership inthe continued development of the com-pany’s business and growth strategy.

Ranck was the chief executive officerof Browning-Ferris Industries (BFI) from1995 through its sale in 1999.

Prior to assuming the position ofCEO, Ranck served in increasinglyresponsible roles at BFI, including presi-dent and chief operating officer. He waselected to the board of BFI in 1990. Afterthe sale of BFI, Ranck served as the chair-man and chief executive officer of TartanTextile Services, a linen management serv-ices company serving the healthcare andhospitality industries from 2002 to 2005.

Ranck has served on the boards ofFuron Company, Chase Bank of Texas andSITA. Ranck currently serves as a directorof Dynamex and Quanta Services.

Ranck elected chairmanof Liquid Environmental

Houston-based Greenstar NorthAmerica, a recycler in North America,announced the appointment of Matt Del-nick as its chief executive officer.

Delnick joined Greenstar in 2008 aschief financial officer and was recentlypromoted to chief executive officer byGreenstar’s parent company, NTR plc.

Greenstar appoints MattDelnick as new CEO

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BUSINESS BRIEFS

May 2010, Page A19American Recycler

Join the Air & Waste Management Association (A&WMA) and over 2,400 environ-

mental professionals from around the world for our 103rd Annual Conference &

Exhibition (ACE) and discover the latest in environmental innovation, re-establish

your professional relationships, and hear the latest technical information available.

ACE 2010 will feature an expansive technical program boasting over 500 speakers,

hundreds of exhibitors displaying the newest products and services in the exhibit

hall, fun networking events, and professional development courses taught by

industry-leading instructors.

A&WMA’S 103rd ANNUALCONFERENCE & EXHIBITIONJUNE 22-25, 2010 • CALGARY, ALBERTA, CANADA

www.awma.org/ACE2010 for more information or to register.

ENERGYAND ENVIRONMENT

CALGARY 2010

CNH announced the appointment ofHenrik Starup as vice president, con-struction equipment Europe. Reportingto James E. McCullough, president andCEO of CNH Construction EquipmentBusiness, Starup is responsible for fur-ther developing and strengthening theCase Construction Equipment and theNew Holland Construction brands posi-tioning in the marketplace.

Starup joins CNH from IVECO, andbrings to his new role over 20 years expe-rience in sales and marketing gainedthrough leadership positions held in Den-mark, the Nordic countries, Germany andat European level for the heavy, mediumand light line. Most recently, he was gen-eral manager for the German market,building IVECO’s exposure and marketshare in this country.

CNH appoints VP, EuropeConstruction Equipment

TerranearPMC LLC, was awarded a$100 million contract from the LosAlamos National Laboratory (LANL) tohaul and dispose waste from the cleanupof Cold War era test facilities. Last year,Los Alamos received money from theAmerican Recovery and Reinvestment Actto demolish and remove buildings in itsso-called Technical Area 21. Project offi-cials estimate cleanup operations will gen-erate about 50,000 cubic yards of rubblefrom demolished buildings and excavatedsoil, enough to fill a football field to adepth of about 25 feet. The companypromises to transport the waste material incertified metal containers with waterproofcovers. Uncontaminated material will goto a nearby industrial landfill, while mate-rial that tests positive for radioactiveresidue will go to an EnergySolutionsfacility in Clive, Utah. Under the RecoveryAct, all work must be completed by Sep-tember 30, 2011.

Los Alamos Lab awardswaste contract

The Labrie Environmental Groupannounced the appointment of TimothyHurst as regional sales manager for thesouthwestern United States.

Hurst has 14 years of prior experiencein executive management and industrialsales with Ingersoll-Rand, McNeilusTruck & Manufacturing and Volvo, inaddition to distribution development andcustomer support.

The southwestern United States is animportant region for Labrie and Hurst willbring his prior knowledge of the refuseand recycling industry to focus on furtherdeveloping business opportunities.

Labrie appoints Tim Hurstas regional sales manager

E-Z Pack Manufacturing, LLC hasappointed Gordon Shaw to its board ofdirectors. The former president ofMarathon Equipment Co., Shaw joinsindustry icons Ted Flood and Fred Leachon the E-Z Pack board.

Shaw began his career at Marathonin 1981 in sales. He moved through theranks at Marathon, becoming vice presi-dent of sales and marketing, executivevice president, and then president in2003. Under Shaw’s tenure, Marathonevolved into an industry leader in thedesign and manufacture of waste pro-cessing and compaction equipment.

Always active in the industry, Shawserved three terms as chairman of theWaste Equipment Technology Association(WASTEC), two terms on the WASTECboard of governors, and is currently chair-man of the board of trustees of the Envi-ronmental Industry Associations (EIA). Hewas named WASTEC Member of the Yearin 2003, and in 2006 was inducted into theEIA Hall of Fame, an honor reserved forselect industry leaders who have made sig-nificant contributions to both the wasteindustry and their local communities.

Gordon Shaw joins E-ZPack Manufacturing board

The Tire Industry Association addedBrian Hesje, chairman of the board ofFountain Tire, to a seat on the new Envi-ronmental Advisory Council. Hesje willreplace Jim Pangle, also of Fountain Tire,on the committee.

Hesje is a past CEO of Fountain Tireand currently serves on the board of direc-tors of the Alberta Recycling ManagementAuthority. Fountain Tire is one ofCanada’s largest tire retail chains, with140 stores.

TIA Environmental AdvisoryCouncil adds Brian Hesje

The Colorado Renewable EnergySociety (CRES) announced that TonyFrank has joined the nonprofit organiza-tion as its new executive director. TheCRES board of directors selected Frankfrom more than 80 applicants. SheilaTownsend, former executive director, willremain with CRES as operations director.

Frank brings extensive experience inrenewable energy policy to CRES and hasbeen involved in projects in Colorado,Wyoming and New Mexico since 2004.Prior to joining CRES, he was manager ofdevelopment for Compass Wind, anddirector of renewable energy developmentfor Rocky Mountain Farmers Union(RMFU). At RMFU, he led renewableenergy programs to support agricultureproducers that develop projects for suchresources as wind, solar, small-hydro, bio-fuels, carbon sequestration and energyefficiency technologies. He recentlyserved on the Colorado Task Force.

CRES hires Tony Frank asnew executive director

Globe Specialty Metals, Inc.announced its acquisition of Core MetalsGroup, LLC, a producer and marketer ofhigh-purity ferrosilicon and other specialtysteel ingredients. Globe paid $52 millionin cash for the Company, which wasowned by the Ospraie Funds. The Com-pany, headquartered in Coraopolis, Penn-sylvania, services the steel, chemical andother industrial markets and anticipates nodisruption of service to customers.

Globe Specialty Metalsacquires Core Metals

PRAB’s extensive line of conveyorsand chip and fluid management systemsare now being represented by Bill Payneof BHE, Inc. in Ludington, Michigan.

Payne brings more than 35 years ofexperience in process engineering.

BHE, Inc. joins PRAB’snetwork of representatives

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REDUCE TURNINGS AND RAISEVALUE WITH PRAB’S SHREDDER

PRAB5944 East N AvenueKalamazoo. MI 49048800-968-7722www.prab.com

TIRE SERVICE EQUIPMENT ADDSCHEETAH STUD EXTRACTOR KIT

Tire Service Equipment Mfg. Co., Inc. now offers theCheetah Stud Extractor Kit.

The patented kit is the most innovative broken studextracting tool on the market. It removes the brokenaxle studs without harming the other studs or the axlehub.

The kit enables drilling a hole precisely in the centerof a broken axle stud and eliminates damage or theneed to re-tap broken axle hubs on the road.

It comes complete with a wooden storage case andis a quick, safe and successful product made in theUnited States.

Tire Service EquipmentMfg. Co., Inc.3451 South 40th StreetPhoenix, AZ 85040800-223-4540www.tsissg.com

TRANSCUBE TRANSPORTABLEFUEL TANKS ARE DOT APPROVED

Transcube’s line of transportable fuel tanks are DOTapproved for road transportation and UL 142 certifiedfor safe diesel fuel storage. The double-walled tanksprovide 110 percent secondary containment of theinner container’s total capacity to eliminate the risk ofspills and contamination.

Models in the Transcube line include the 05TCG,10TCG, 20TCG and 30TCG, offering capacities of132, 264, 528 and 792 gallons. To eliminate the risk ofaccidental spillage, the tanks have no bottom or sideexterior outlets of any kind.

Transcube USA18 Lois StreetNorwalk, CT 06851203-847-4300 www.transcube.net/us

KOMAR’S AUGER COMPACTORPROCESSES WET WASTE CLEANLY

The new Auger Pak from Komar Industries is atotally enclosed compactor with a sealed processingchamber that provides a path for wet and dry wastedirectly to the receiver section. The electro-mechani-cally driven auger screw shreds and compacts wastewith more than 56,000 lbs. of force.

The Auger Pak runs on electric power. With capaci-ties from 20 to 35 cu. yd., the Auger Pak is well suitedfor generators of large amounts of liquid, semi-liquidand solid waste.

Komar Industries, Inc. 4425 Marketing PlaceGroveport, OH 43125 614-836-2366www.komarindustries.com

FRANKLIN MILLER INTRODUCESTHE VULCANATOR GRANULATOR

The Vulcanator® can reduce whole bales of rubberinto small bits without significant heat rise.

The Vulcanator features a unique cutting mecha-nism that cuts and recirculates material to a size fineenough to pass through a special perforated screen.

The Vulcanator is built for heavy-duty operation. Thehousing is constructed of heavy steel plate. A highlevel of precision is incorporated into every compo-nent. Access doors are provided for easy mainte-nance. Optional features include an S260 automaticreversing controller, infeed and discharge conveyingsystem and hoppers.

Get more money for your metal scrap by increasingits bulk density. Efficiently reduce turnings – includingdifficult-to-handle nested wads – to flowable chips withPRAB’s broad line of metal turnings shredders.

Housekeeping maintenance and worker safety isalso enhanced with automated handling of turnings.PRAB offers a complete line of turnkey chip and fluidmanagement solutions to further process material forincreased value, environmental compliance, fluidrecovery and more.

Comes with PRAB’s exclusive Performantee, a trueperformance guarantee.

Franklin Miller Inc. 60 Okner ParkwayLivingston, NJ 07039 973-535-9200www.franklinmiller.com

NEW PRODUCT SHOWCASEBUSINESS BRIEFS

Smurfit-Stone Container Corpora-tion’s Recycling division announced it haspartnered with Emerald Waste Services(EWS) to operate EWS’s materials recy-cling facility and transfer station inGainesville, Florida. Smurfit-Stone willpull recyclable materials delivered to thetransfer station from the waste stream,thereby reducing the amount of materialwhich goes to the landfill.

Smurfit-Stone partners withEmerald Waste in Florida

OmniSource Corporation, head-quartered in Fort Wayne, Indiana,announced the following additions to itsferrous and nonferrous teams.

Brad Gahr has joined OmniSourceand will be part of the ferrous operationsmanagement team in Fort Wayne. Mostrecently he was the superintendent ofoperations with the Miller CompressingCompany in Milwaukee, Wisconsin,where he managed 7 yards with a workforce of more than 100 employees andwas responsible for processing ferrousand retail scrap.

Darren Stoody has rejoinedOmniSource as the Company’s hedgemanager. Darren began his career in therecycling industry with OmniSource in2002 after working with Merrill Lynch asa financial advisor. He left OmniSource in2008 to join a private investment group.

OmniSource adds to itsmanagement team

Clean Harbors is offering custom-designed pharmaceutical waste manage-ment and removal programs forhospitals and other healthcare facilities.

The customized solution combinesfrontline collection procedures, wasteremoval, sorting and disposal programsthat support each organization’s proce-dures by using pharmaceutical wastemanagement practices that conform tothe operational structure while meetingregulatory requirements.

Clean Harbors pharmaceutical wastemanagement offering is available either asa comprehensive on-site service that elimi-nates the need for in-house waste manage-ment staff or as a menu of services toaddress specific needs.

Clean Harbors to offermedical waste services

CETCO announced that CharlesWilk has been appointed the position ofmidwest regional manager, CETCOContracting Services. Wilk will be basedout of the office in Hoffman Estates,Illinois.

Wilk comes to CETCO with experi-ence as a program manager for the wastemanagement market at Portland CementAssociation and has held positions at theEnvironmental Protection Agency as aRCRA regulatory specialist, RCRA permitwriter, and superfund remedial projectmanager. He has presented at dozens ofwaste management and site remediationconferences and has written/co-writtenover 15 papers for magazines and journalsthroughout the industry.

CETCO appoints newregional manager

OneSteel Limited announced thatits recycling business has signed anagreement for the purchase of the MetalsTrading business.

Metals Trading is a scrap dealerwith businesses in New South Wales andVictoria and is a supplier to OneSteel’sRecycling business. The company oper-ates scrap yards in metropolitan Sydneyat Padstow and Seven Hills and metro-politan Melbourne at Thomastown andKilsyth, as well as regional yards inWagga Wagga and Corowa in NewSouth Wales and Mildura in Victoria.

Metals Trading collects approxi-mately 120 thousand tons of ferrousscrap and 30 thousand tons of non-fer-rous scrap per annum.

The acquisition is subject to clearancefrom the Australian Competition and Con-sumer Commission.

OneSteel acquires scraprecycler in Australia

Terex has announced that LowellStout will be retiring after a 45 yearcareer in the construction industry.

Stout is retiring from Terex as a sen-ior product manager with the Terex Con-struction Americas business segment,based in Southaven, Mississippi. Stoutwas instrumental in the development ofthe Terex® “B” series tractor loaderbackhoes and has been actively workingon upcoming 2010 product launches.

Stout’s career began in 1965 as adealer training supervisor with MasseyFerguson, Inc. in Indianapolis, Indiana.By 1975, he was the North Americangeneral sales manager, and in 1983became president of Massey FergusonIndustrial Machinery Ltd, located inAtlanta, Georgia. With a staff of 18, hemanaged the $35 million North Ameri-can portion of the business whichincluded 75 distributors. In addition, hewas responsible for coordinating sales inthe Caribbean, Central America andmost of South America. In 1992, MFIndustrial was sold to Fermec HoldingsLimited. In October 1996, Fermec wasacquired by Case Corporation. As acondition of the merger of Case Corpo-ration and New Holland, Fermec wasdivested and sold to Terex in January2001.

Lowell Stout retires fromTerex after 45 years

Advanced Disposal Services locatedin Jacksonville, Florida, has acquired theFlorida assets of Trash Prince Inc., whichdoes business as Trash Taxi and provideswaste collection services to residents andbusinesses in Fort Meade, Florida, and inPolk, Pasco and Orange counties.

The purchase includes customer con-tracts, containers and nine Trash Taxitrucks as well as a long-term lease on anoffice and a maintenance facility in WinterHaven, Florida.

Advanced Disposal buysTrash Taxi’s Florida assets

Page A20, May 2010 American Recycler

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May 2010, Page A21American Recycler

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1993 BIG MAC CRUSHER $48,000. 645Fiat wheeloader w/forks and bucket$12,000. Custom-built wheel crusher$3,800. DESCO 2500 model tire cutter$16,000. 1997 Al-jon IMPACT 5 car flat-tener, new motor $98,000. Athey AWD andsteer forklift, 4 cyl. Detroit $7,500. A770KATO 48,000 lb. track hoe, bodine clam,bucket and brand new tracks $20,000.GEIL 4625 skid steer, fire damage in rear,good for parts $1,200. Rebuilt 6.6 Forddiesel motor $1,500. Honeybrook PA: 610-273-2423 or 610-304-4642.

GOT A SCRAP OR PARTS YARD? Gottow trucks? We've got business for you!Donate A Car 2 Charity is a nationwide cardonation program handling over 18,000vehicles a year. Looking for competitive flatrate bids for scrap and parts vehicles.Contact Keith 760-755-2077 or visitwww.donateacar2charity.com.

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SIERRA 700T, SIERRA 500T, both can beviewed running, well-maintained. Call Gus:813-282-8712 or Gunn: 813-713-1210.

HORIZONTAL BALER, LOGEMANNMODEL 245B-AT. Bale 40” x 30” x 56”.Bale weight 1,150 to 1,500 lbs. Compres-sion 12” cylinder, 3,000 psi, 9” ejectorcylinder. 100 h.p. motor, automatic tie. 100hours since overhaul. Bob Hall 405-236-4255.

SCRAP METAL BUSINESS. Both non-ferrous and ferrous. 27,000 sq. ft. covered.Located in NE Ohio, owner retiring after25 years. Well-established, first timeoffered. Reply in confidence to:[email protected].

Businesses

EXCELLENT BUSINESS OPPORTU-NITY. 9.9-acre scrap yard. Located inNortheastern North Carolina, includes17,000 sq. ft. building with office space, 2-ram baler, 3 forklifts, computerized scales.Gross sales at peak $1.5 million. Will senda Power Point presentation of the busi-ness. Owner passed away. Will consider allserious offers. Contact Sam of Sam DavisAssociates Realty at 252-267-5865.

NW OHIO SALVAGE YARD FOR SALE,Approx. 10 minutes from Toledo, estab-lished location. 9 acres of property. Approx.5 acres for salvage yard, approx. 4 acresresidential. Approx. 3,000 sq. ft. buildingplus outside storage sheds. Some equip-ment available. rapidly growing area. Seri-ous inquiries only. Land contract possible.Call 419-356-4255.

FULLY EQUIPPED, SOUTHERNFLORIDA SCRAP and recycling yard,available on 8.5 fully concreted acres.74,000 sq. ft. building, brand new 4,000 hpshredder available. 750-ton shear, (2) 70foot scales, additional equipment toonumerous to list. 2.5 mile port access, onemile rail siding. Fully permitted and con-forming zoning. Serious inquiries only [email protected].

Businesses

Employment

Material Handlers

FUCHS2004 MHL380 (rubber), 69' reach, hydraulic cab, gen-set and grapple2004 & 2005 MHL 360 (rubber), 59' reach, hydraulic cab, gen-set, magnet & grapple.2003 MHL331 (rubber), 34' reach, hydraulic cab, gen-set and grapple.1996 & 2001 MHL 331 rebuilt (rubber), 36' reach, hydraulic cab, gen-set and grapple.1996 & 2001 RHL 350 REBUILT (crawlers), 50' reach, hydraulic cab, gen-set and grapple.2005 MHL 350 (rubber), 50' reach, hydraulic cab, gen-set and grapple.2001, 2003 & 2005 MHL 340 REBUILT (rubber), 41' reach, hydraulic cab, gen-set and grapple.1995 & 2002 MHL 350 REBUILT (rubber), 50' reach, hydraulic cab, gen-set and grapple.

LIEBHERR2001 A934 REBUILT (rubber), 51' reach, hydraulic cab, gen-set and grapple.2001 A924 REBUILT (rubber), 40' reach, hydraulic cab, gen-set and grapple.2000 R914 REBUILT (crawler), 38' reach, 4' cab riser, gen-set and grapple.2000 A904 REBUILT (rubber), 35' reach, 4' cab riser, gen-set and grapple.1999 R934EW REBUILT (crawler), 50' reach, 4' cab riser, gen-set and grapple.1998 A922 REBUILT (rubber), gen-set, grapple and magnet, no riser.1994 A932 REBUILT (rubber), hydraulic cab, gen-set and grapple.

CATERPILLAR2005 M325C REBUILT (rubber) with 50' reach, hydraulic cab, A/C, gen-set and grapple.2002 Cat M318 (rubber) 36' reach, A/C, hydraulic cab, gen-set and grapple.

SENNEBOGEN2004 821M (rubber), 36' reach, hydraulic cab, gen-set and grapple.2004 825M (rubber), 42' reach, hydraulic cab, gen-set and grapple.2004 835M (rubber), 52' reach, hydraulic cab, gen-set and grapple.2000 830M REBUILT (rubber), 50' reach, hydraulic cab, gen-set and grapple.

COLMAR2004 5260 AUTO LOGGER/BALER with 16.5' chamber, crane and grapple.

OTHERS2004 Big Mac portable car crusher, 3,500 hours.2004 SIERRA T500SL shear/baler combination.2008 AL-JON 580CL portable logger/balerAL-JON LC90 portable car crusher.2002 CASE CX240 (crawler excavator) with new gen-set and new 48” magnet.2003 NEW HOLLAND MH (rubber), 40' reach, cab riser, gen-set and grapple.1996 KOMATSU PC240 REBUILT (crawler), 38' reach, 3' cab riser, gen-set and grapple.Trackmobile TM5 rail car mover.1995 NORTHSHORE 2100 SE REBUILT (stationary electric -75HP) MH, 27' reach, cab, A/C and grapple.Genesis GMS 500 R rotating shear.

NEW BELT OR DIESEL-DRIVENGEN-SETS COMPLETE

(1) USED ROTATING GRAPPLE(1) USED 67” OHIO MAGNETREBUILT MAGNETS: 45” & 54”

NEW 4-TINE ROTATING SCRAP GRAPPLES

Mobile Shears & GrapplesHydraulic Material Handlers

Magnets & Gen-sets

Call Ivan Jacobs today at800-472-0453

EQUIPMENTEQUIPMENTINTERNATIONALINTERNATIONAL

NF TRADER: LEADING NE OHIO scrapmetal recycler seeks a results-oriented,non-ferrous scrap pro, with a proven trackrecord to expand and develop our non-fer-rous business. Focus is entirely on buyingand selling nonferrous scrap. Will have nat-ural ability to attract new customers. Weoffer a generous compensation pkg. withfull benefits, bonus, liberal travel allowanceand vehicle. Please forward your Résuméin complete confidence (MS Word formatplease) to [email protected].

COMPACT "GENIUS GENSET"

MODELS 10kW, 13kW, 20kW, ALSO WITH HYDRAULIC DRIVE.

WWW.JOBMACHINERYINC.COM CALL JOHN 612-961-8893

Material HandlersSTATIONARY TRI STATE SHEAR, Baler,Logger. Has squeeze box. Very good oldermachine. $49,900. Newton, Wisconsin.Please contact Eric, 920-693-8261,[email protected].

800-472-0453 Ivan Jacobs

New American built Diesel, Gas or Belt-driven Gen-sets and

New Deep Field Aluminum Wound Magnets.

2003 Liebherr A954B Material Handler

Hydraulic Cab 60' Reach 139,000 Lbs Operating Weight

www.hescomachinery.comCALL JOHN DAVIS 952-944-3611

2003 LIEBHERR A954B

NEXT DEADLINE MAY 17

BIBB AUTO PARTS AND SALVAGEYARD in Macon, Georgia. Has been inbusiness since 1949 with same phonenumber. 22.77-acre site. Zoned C4 high-way commercial, future zoning restrictsadditional salvage yards. Compliant withEPA. $1.2 million or best offer. Call 478-718-5528 or 478-743-8682.

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Page A22, May 2010 American Recycler

www.hescomachinery.comCALL JOHN DAVIS 952-944-3611

HHEAVY EQUIPMENT SERVICES CO

1996 Caterpillar M318 MH (Rubber) 37' Reach, Elev Cab, Gen Set & Grapple1999 Caterpillar M325B MH (Rubber) 50' Reach, Elev Cab, Gen Set & Grapple2006 Caterpillar 325D MH (Crawler) 51' Reach, Elev Cab, Gen Set1999 FUCHS RHL340 (Crawler) 41' Reach, Elev Cab, Gen Set & Grapple2005 FUCHS MHL350 (Rubber) 49' Reach, Hyd Cab, Gen Set & Grapple2002 FUCHS MHL360 (Rubber) 59' Reach, Hyd Cab, & Clamshell Bucket2000 FUCHS MHL360 (Rubber) 59' Reach, Hyd Cab, Gen Set & Grapple2002 Liebherr A904 (Rubber) 38' Reach, Elev Cab, Gen Set & Grapple2003 Liebherr A954 (Rubber) 60' Reach, Hyd Elev Cab

www.hescomachinery.comCALL JOHN DAVIS 952-944-3611

2006 CATERPILLAR 325D MH

51’ Reach

Material Handler with elevated cab andgenerator. 78,000 lb. operating weight.

WE ACCEPT CHECKS, MONEY ORDERS, MASTERCARD, VISA and DISCOVER.

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Material Handlers

2005 FUCHS MHL 360

800-472-0453 Ivan Jacobs

5,300hoursA/CGen-setGrapple

59' ReachNew Tires

MATERIAL HANDLERS

Kohart Surplus & SalvageKen Kohart

419-399-4144 • 419-786-9243

• Electric Pedestal-mount Equilibrium Crane, ‘97 Harris Model#H6520P, 65’ reach, 100 hp• Triaxle Roll-off Trailer• Baler: paper/OCC w/conveyor & preshredder• Tire Shredder, 100 hp electric

800-549-0490All 50 plus Canada!

CALL ANYTIME,WE NEVER SLEEP!

with Fast Delivery!Grapples & MagnetsWE NOW OFFER HIGH QUALITY

g

Hamburg, NY

Material Handlers Miscellaneous

Perry Videx LLC • [email protected] • www.perryvidex.com

SHREDDERSEQUIPMENT FOR SALE

Reitz PB24 Prebreaker 22"x33" SSI 450HP Diesel 42"x66" Shredder Eidal 100c Refuse shredder, 150HP

Miscellaneous

Scales

Shears

Software

Tire Recycling

NEEDED: INDIVIDUALS INTERESTED ina 21st century, environmentally-sound,revenue-generating, proprietary crumbrubber and refractoring system. Tiresturned quickly, leaving nothing behind towaste. All components, (fiber, wire mesh,and rubber) are separated and generaterevenue streams that will amaze the tirerecycler. Write us at [email protected].

NTEP APPROVED, LEGAL FOR TRADEFLOOR SCALES: 4' x 4' 5,000 lbs. $795,5'x5' 5,000 lbs. $1,100. Scales come fac-tory calibrated with digital readout. Freeshipping, other sizes and capacities avail-able. Industrial Commercial Scales, LLC,843-278-0342, [email protected].

SALVAGE YARD SOFTWARE. Auto recy-clers yard management system for Win-dows™ by Rossknecht Software. Obtainextra revenue from scrap vehicles.Includes vehicle parts breakdown, invoic-ing, bar code tags, digital pictures,reports, towing, sales history, bookkeep-ing. New: Scrap purchase invoice andprints checks; send your inventory to yourwebsite. $750 complete, no monthly fees.Visit www.rossknecht.com, [email protected]. Free demo CD303-884-5315.

Steel Building

MOBILESHEARS

1990 CAT 235 with CAT S340 rotating shear.

2000 KOMATSU PC300 LC-6 with Genesis GXP660R rotating shear.2003 VOLVO EC240B with Genesis GMS400R rotating shear.

800-472-0453 Ivan Jacobs

with

Cab Guards

1990 CAT 235with CAT S340 rotating shear.

OBILEHEARRRRSSSSSSSSSSSSSSSSSSHEAR

Guards

MOBILEMOBILESHEARSSHEARS

EQUIPMENT FOR SALENEW & USED

Gus813-282-8712

Gunn813-713-1210

**Several 2 RAM Balers!**

HARRIS SHEAR BSH-1123HARRIS SHEAR BSH-1023

SIERRA 500T LOGGER BALER SHEAR500 TON MOBILE LOGGER BALER SHEAR (2)

All above in good condition &available for immediate delivery!

Shredders - All Sizes- LET US SELL YOUR EQUIPMENT -

SALES / SERVICE / PARTSBalers / Conveyors / Baling Wire / Recycling Systems

Material Handling Equipment

Over 100 years combined experience in the industry

TO SEE OUR INVENTORY PLEASE VISITwww.sargentsequipment.comOR CALL US AT 708-758-2062

Exclusive Harris Dealer for IL, MI & IN

PREVENTATIVE MAINTENANCE PROGRAMSWire Tire Repair / Baler InstallationP.L.C. Diagnostics & Programming

Reline Services

YOUR COMPLETE SOURCE FOR RECYCLING EQUIPMENT

HAVE USED EQUIPMENT TO SELL?Consider placing it in American Recycler -for only $60! Call 877-777-0737 or visitAmericanRecycler.com for 24/7 service.

www.jobmachineryinc.comCALL JOHN 612-961-8893

NEW 13kW GENERATOR, NEW 40” MAGNET, 4’ STICK EXTENSIONPINNED ON, TOTAL HOURS 5,300

2000 LIEBHERR A914

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Options:Hook and rails suitable for rolloff container systemCatalytic Converter Cutter powered by airVacuum system to remove fluids from master cylinder and power steering pumpsExtra funnel with air drill increas-ing operating speed for two man operation.We also sell Oil Dri by the pallet or half pallet and oil absorbent cloth sold by the pound.

Dimensions:Height Width Length Weight

7’ 4”6’ 6”16’ 0” 7,000 lbs.

The Enviro-RackAuto Fluid Removal & Dismantling Station

We offer all steel tanks along with a grated catwalk for operator safety. Underneath the catwalk is a 249 gallon catch pan and also a 360 gallon tank to catch any spills. No other

system on the market comes close to the Enviro Rack. Meet EPA and State level regulations concerning fluid removal. The Enviro Rack is totally air operated.

There are no gasoline or electric motors that could create a spark. The Enviro Rack is a safe system. Complete fluid removal in less than 5 minutes.

The Enviro Rack is theFIRST AND ONLY

self-contained fluid removalsystem on the market.

Funnels are equipped with drills through the center to insure there are no spills.Antifreeze drain vat is piped into the holding tankAntifreeze and motor oil storage tanks have a 180 gallon capacityAll tanks have gauge and gauge guardEach unit is equipped with two fire extinguishersGrated catwalk for floor safetyAdjustable car rack allows for any size vehicle and can be setup tilted to the left or right for liquids to drain to one side of the tankAir drills are used for speed and safety249 gallon catch pan360 gallon lower tank beneath catch pan4 foldout catwalks for tire removal50ft. retractable hose reel for air wrenchThe upper rack serves as an air manifoldFluid can be pumped out of tanks using air pressure and tanks also have lifting eyes for easy handling

Enviro Rack Features:

Toll-free 877-247-6629Fax 478-252-9030Wadley, Georgia

Iron Ax, Inc.www.IronAx.com

[email protected]

BUYBUYNOWNOW

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www.OverBuilt.com • [email protected] • 605-352-6469

800-548-6469

OverBuilt.com • [email protected]

MAY 2010

10 ft.

GREAT BUYS!TRADE-INS

OverBuilt Inc. of Huron, South Dakota, is distinguished by the high-speed option available for its Model 10 crusher. The Model 10 has a 10-foot high door opening allowing operators to crush vans, buses and other tall vehicles, as well as loading up to six cars per cycle. The 400-gallon on-board fuel tank allows operators to refuel loaders as well as go long periods between fillups. A similarly sized 400-gallon tank holds fluids reclaimed from flattened vehicles.

But the Model 10’s speed is its primary distinguishing option. OverBuilt employs a high speed oil bypass system to quickly transfer hydraulic fluid from the tops of cylin-ders to the bottoms, reducing the volume of oil that must be pumped from the reser-voir, therefore cutting cycle time.

Crusher valued for morethan its big 10’ opening

OverBuilt’s Baler/Logger hasincreased compression force

SPECIAL!SPECIAL!

1999 Big MAC Car Crusher

Full automation system, air compressor and hydraulic landing gear.

Cummins 6-cylinder engine with 1,400 hours on recent overhaul.

Car Crusher is located in Nebraska.

$89,000.

2003 EZ A+Car Crusher

Portable CrusherFull automation system, hydraulic landing gear and air compressor. 11,400 engine hours on the efficient John Deere, 6-cylinder diesel engine.

This crusher has been well-maintained and is ready to crush. Located in Illinois.

$94,900.

OverBuilt’s Baler/Logger unit has a larger charge box and a variable bale size feature making it versatile to suit your particular needs.

With the increased compression force, it’s extended fuel capacity and heavy-duty knuckle boom make this baler/logger a powerful machine with superior reach and lifting capacity.

Definitely an asset you should order today!

BUY NOW AND RECEIVE:UNPARALLELED QUALITY FANTASTIC PARTS AND SERVICE GREAT PRICES AND FEATURES

EXPeRT KNOWLEDGE AND SERIOUS TECHNOLOGY

CALL NOW 800-548-6469

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METALSSECTION B www.AMERICANRECYCLER.com MAY 2010

FOCUS onAR RecycleRR reeRecycler

The state of scrap metal is a wholelot better than it was a year ago, but notnearly as good as many would likebecause of difficulties in acquiringmaterial and flat, uncertain marketconditions. Nevertheless, scrap metalhas rebounded to stronger levels as theeconomy is beginning to recover.

“The weather has improved and thathas helped improve business and com-modity prices are up. The bigger ques-tion unfortunately, is that there is a bit ofscarcity of material out there,” com-mented Greg Dixon, general manager ofBaker Iron and Metal, the largest scrapmetal dealer in central Kentucky withyards in Lexington and Morgan, Ken-tucky and Seymour, Indiana.

Demand for ferrous scrap tankedin late 2008 but has returned to reason-able price levels. Heavy melting scrap(HMS) was recently in the mid $300 to$400 per ton range, about back to lev-els seen on 2006, but nowhere near the$700 range it peaked at just before thefinancial crisis.

“You should take into considera-tion that the decrease in the values ofthe metal is exacerbated because notonly did prices decline drasticallybetween 2008 and 2009, but volumesalso dropped. Not only was the metalworth quite a bit less, but less wasprocessed too,” said Tom Crane, man-ager of member services at the Instituteof Scrap Recycling Industries (ISRI).

Recent estimates from ISRI, basedon United States Department of Interiornumbers for domestic scrap metalsprocessed in 2009 as compared to 2008,not including exports, show:

Ferrous (including stainless) wasdown 27 percent in volume and 57 per-

cent in value, a drop from $23 billion to$9.8 billion.

Nonferrous (including preciousmetals) was off 12 percent in volumeand down 28 percent in value from$24.1 billion to $17.2 billion. Alu-minum went down 18 percent in volume

and 47 percent in value, from $7.6 bil-lion to $4.0 billion.

Copper saw drops as great as 8percent in volume, and 33 percent invalue, decreasing from $4.9 billion to$3.2 million.

Current scrap market on upswingPHOTO COURTESY OF HUGUETTE ROE | DREAMSTIME

See MARKET UPDATE, Page 7

by MIKE [email protected]

In a public meeting held by theCommodity Futures Trading Commis-sion (CFTC), Jeffery Burghardt, vicepresident of North American MetalProcurement and Global Utilities ofLuvata Buffalo, spoke on behalf of theCopper and Brass Fabricators Councilregarding the unprecedented volatilityin prices for copper over the last sever-al years. The CFTC set this publicmeeting to examine futures and options

trading in the precious and base metalsmarkets and focused on trading in gold,silver and copper.

In his remarks, Burghardt notedthat the price of copper has risen bymore than 100 percent since the end of2008 even though the quantity of cop-per stored in warehouses also increasedsubstantially over the same period. “Byall rights,” Burghardt observed, “thegreater supply of available copper

should have led prices to decline ratherthan more than double. The Councilbelieves that the explanation for thiscounterintuitive pricing lies in invest-ment firms’ large positions in the mar-kets. What the Council seeks is lowervolatility and market prices that reflectover time the real demand/supply situa-tion, not the excesses of speculation.”

In materials released prior to thepublic meeting and during the meeting

itself, the CFTC questioned whatwould happen if it were to establishposition limits for metals markets.

In response, Burghardt statedthat the Council shares the goal oflimiting the impact of investmentfunds in the commodity markets, butbelieves that position limits would bevery challenging to implement effec-tively.

Copper volatility leads to calls for regulation

See COPPER REGS, Page 3

A recent poll conducted by KMPG among United States business executives found that 71 percent were optimistic and 63 percent have seen higher businessactivity. The volume of American manufactured goods has risen slowly, up by tenths of a percent in 10 of the last 11 months and trending positive.

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A Letter fromthe Editor

Metals www.AmericanRecycler.comPage B2, May 2010

Ad space is limited, so don’t wait...877-777-0737www.AmericanRecycler.com

ISSUE CLOSE FOCUS

Upcoming Section Beditorial focus topics

AR

Today is the BEST timeToday is the BEST timeto promote your company.to promote your company.

JUNJUN 5/165/16 PlasticsPlastics

AUGAUG 7/167/16 Solid WasteSolid Waste

JULJUL 6/176/17 Alternative EnergyAlternative Energy

SEPSEP 8/178/17 AutoAuto

OCTOCT 9/179/17 ElectronicsElectronics

NOVNOV 10/1810/18 Paper/PlasticsPaper/Plastics

DECDEC 11/1611/16 MetalsMetals

Dave FournierFocus Section [email protected]

Dear readers,April showers may bring May

flowers, but according to at leastone source quoted in our FocusFeature article this month by MikeBreslin, the better weather alsoplayed a role in bringing about sig-nificant improvements in commodi-ties pricing.

The focus this month is on met-als markets, and the news is sunnierthan the weather. Whereas my Mid-western April was rainy and glum(the price of living in Ohio), metalsmarkets have been considerablycheerier. Buyers have been stirredfrom their slumber, prices are rising,demand is growing again and thefolks who are in the know are fore-casting that business is headingtowards a semblance of normalcy.

Normalcy, while not usuallysomething to celebrate, looks darnfine compared to the economicmorass that the economy has beenotherwise mired in.

And so, welcome to the Mayedition of American Recycler. I hopethat you’ll find that the news hereinproves helpful as well as hopeful.Spring is in the air, and so is a perva-sive sense of optimism. I hope youall find the mood to be catching.

If you still need convincing,keep an eye out for more than a fewarticles in this issue about plannedexpansions, new hirings, upgradedheadquarters and increased profits. Ithink you’ll be pleasantly surprisedto see that major players are hedgingtheir bets that the growth will contin-ue, and that means that whateverrole you play in these markets,you’re likely to see some increasedbusiness coming your way.

In keeping with the springtheme, if you’re in the mood for alittle romance, check out A CloserLook on page six. Donna Currie haswritten a real life tale not only ofentrepreneurial business, but also ofhigh school sweethearts who man-age to find each other, and happi-ness, after years and marriages apart.

I hope you enjoy this month’sissue. It’s a fairly upbeat collectionof news stories, which speaks to theimproved business climate that isslowly re-developing. I would expectmore of the same in upcomingissues.

As always, feel free to get intouch. I’d be greatly interested inhearing if the economy hasimproved for you, about your plansfor growth, or even about your ownlove story. Have a happy spring,enjoy the weather and keep reading.

Western Metals plans newfacility in Albuquerque

Western Metals Recycling LLC(WMR) announced plans to open a newscrap metal recycling plant in Albu-querque, New Mexico adjacent to its sis-ter company’s used auto parts retailstore, U-Pull-&-Pay (UPAP). The WMRfacility will utilize a portion of theUPAP property, which comprises morethan 50 acres in unincorporated Bernalil-lo County. WMR and UPAP are whollyowned by The David J. Joseph Company(DJJ), a Cincinnati-based subsidiary ofNucor Corporation.

WMR has a two-part plan for theAlbuquerque location. Phase 1 includesa scrap metal recycling plant, scheduledto be opened by early summer 2010,pending all appropriate permits, licens-es, and required improvements. At thisfacility, WMR will buy common house-hold ferrous and nonferrous scrap metalitems which may include appliances,sheet metal, automobiles, aluminumcans and other aluminum, copper andbrass products. Customers will be paidon site for their scrap metal. All metalspurchased will be sorted and then trans-ferred off-site for processing. This phase

will require a staff of 5-10 full timeemployees, pending market conditions.

Phase 2 will improve the facility toaccommodate on-site processing activi-ties, including the installation of a 4000HP automobile shredder. This expansionplan is consistent with The David J.Joseph Company strategy of strengthen-ing its existing footprint in the scrap pro-cessing industry, and takes advantage ofvertical integration within the companyand the ancillary benefits of being locat-ed adjacent to the UPAP store.

UPAP’s self-service business modelallows customers to bring their owntools to pull used auto parts for costsbelow market rates. Inventories areturned over on a regular basis, with har-vested auto hulks crushed and recycledat DJJ processing facilities. Upon thecompletion of WMR’s proposed Phase2, the harvested autos from this UPAPlocation will be recycled in Albu-querque. The recovered metals will thenbe shipped to designated end-users forrefinement. Phase 2 improvements willincrease the number of employees at thisWMR facility to 30-50.

J. Solotken and Co. officially openedthe doors to its new 140,000 square footfacility on Indianapolis’ Eastside.

The Company’s acquisition of thebuilding, located at 6701 English Avenue,is an economic development successstory.

The new facility, in which J.Solotken began operation in March, hadbeen left empty in May, 2008, followingthe collapse of the Frank E. Irish Co. J.Solotken and Co. purchased the buildingin December, 2008 and over the past 15months has invested approximately $4.5

million to bring every facet of the proper-ty back to life.

“We’ve changed the entire structureof how we recycle the metal that comes tous,” said Brian Nachlis, vice president.“From the docks on which materials arereceived – to the processes we use tomove it through the facility, everythinghas changed. Now, our production capac-ity has increased dramatically; we’vegone from packaging scrap 500 pounds ata time and hand tying it together to 2,000pounds and it’s tied automatically by amachine.

Originally founded in 1914, theCompany has installed state-of-the-artequipment, such as a high-tech balingsystem, to quickly process the nonferrousmetals that are recycled each day. In addi-tion, the building is now equipped withenergy-efficient lighting, new fire sup-pression and security systems, as well asa more advanced HVAC set-up.

The Company currently employs 35people, and was recently ranked as thefourth largest recycling company in Indi-anapolis.

Indiana scrap dealer expands, updates facilities

In response to inquiries, U.S. SteelCorporation announced that it willrecord a charge of approximately $27million in the first quarter of 2010 toadjust deferred tax assets as a result ofa change in the tax treatment ofMedicare Part D subsidies under therecently enacted Patient Protection and

Affordable Care Act and the HealthCare and Education Reconciliation Actof 2010 (the Acts).

While this change under the Actsdoes not become effective until 2013,United States’ generally acceptedaccounting principles require that theimpact of changes in tax law be imme-

diately recognized in income in theperiod of enactment.

Based upon the Medicare Part Dsubsidies expected to be received in2010, the annual cash tax increase ofthis aspect of the Acts would be lessthan $10 million.

U.S. Steel records healthcare related charge

Aleris International, Inc., a globalproducer of aluminum rolled products,extrusions and recycling, announcedthat it has reached a settlement with theCommittee of Unsecured Creditorsappointed in the Company’s chapter 11case, under which the amount ofmoney available for payment to hold-ers of Class 5 Claims was increasedfrom an initial proposed amount of$4.0 million to $16.5 million.

The settlement has no impact onthe potential recovery of any otherclasses of creditors under the plan.

The Company also said that it hasbegun the process of solicitingapproval from eligible creditors for theCompany’s proposed plan of reorgani-zation.

The solicitation package containsthe Disclosure Statement and informa-tion on the amended plan and includes

a letter stating the clear support for theplan by the Committee of UnsecuredCreditors.

The confirmation hearing for thePlan has been scheduled for May 13,2010.

Claims information and Court fil-ings, including the proposed Plan andDisclosure Statement are available atwww.kccllc.net/Aleris.

Aleris begins soliciting approval for plan of reorganization

A recipe is a series of step-by-step instructions for preparing ingredients you for-got to buy, using utensils you don't own, to make a dish the dog won't eat.

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Alcoa has dedicated a $24 millionexpansion of aluminum can recyclingcapacity at the company’s Tennesseeoperation which will increase recyclingcapability by nearly 50 percent andhelp secure more than 100 jobs at thefacility.

“The aluminum can is the world’smost efficient package, largely becauseit can be recycled infinitely,” saidKlaus Kleinfeld, president and CEO ofAlcoa. “In the United States alone,more than 46 billion cans were put intolandfills last year,” said Kleinfeld. “Ifwe could instead recycle about half ofthose lost cans, we could achieve ourgoal of a 75 percent recycling rate andsave the emissions of two coal-firedpower plants.”

The new Tennessee OperationsCan Reclamation facility includes anew crusher and delacquering furnaceand supporting building enclosures,utilities and environmental systems.These improvements will help increasecapacity using state-of-the-art environ-mental and fuel-efficient technology aswell as support future flexibility toprocess other scrap types.

Recycling an aluminum can saves95 percent of the energy it takes tomake a can from new metal. A usedbeverage container can be recycled andback on the shelf in 60 days, somethingno other beverage package can do.

In 2009, Alcoa announced a com-mitment to work toward increasing

recycling rates in North America to 75percent by 2015. Increasing recyclingcapacity is part of the overall strategyto drive recycling rates.

“Today Americans recycle about54 percent of all beverage cans pro-duced in North America,” Kleinfeldsaid. “If everyone would recycle one

more can per week, we can reach our75 percent goal.”

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Instead, Burghardt said, “TheCouncil submits that a better means tothe end will be to raise the initial mar-gins required for investment firms. Thesystem for initial margins is already inplace and in use, will allow for flexibil-ity in changing the amount of the initialmargins as circumstances warrant, andwill be much easier to monitor and con-trol than position limits.”

In expressing the Council’s appre-ciation and support for the CFTC’swillingness to tackle this issue,Burghardt stressed the importance offutures markets for the Council’s mem-bers in establishing prices and manag-ing the price risks that copper and brassmills face. “We only use futures mar-kets as necessary in our day-to-daybusiness to hedge our price risk, and itis critical we can do this in a cost-effec-tive manner.”

Copper regs■Continued from Page 1

ArcelorMittal plans rebar jointventure in Northern Iraq

ArcelorMittal announced that it hassigned a memorandum of understandingto establish a joint venture with Turkishpartner, Dayen, to build a steel mini-millwith electric furnace in Sulaimaniyah inNorthern Iraq.

In its initial phase, the mill wouldproduce up to 250,000 tons per year ofrebars from locally sourced scrap and

require investment of $100 million to$130 million, jointly subscribed byArcelorMittal and Dayen.

Construction is planned to start inthe second quarter of 2010 and produc-tion is planned to commence early in Q42011. Production could eventuallyincrease to 500,000 tons per year.

Guests of the event view new equipment installed as part of the expansion. The project includes a new crusher, furnace, state of the art environmental controls andassociated handling equipment.

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High Torque, High Quality Shredders since 1977

Komar Industries614-836-2366

[email protected]

• Metal Turnings• Trim Scrap

• Medical Waste• Product Destruction

• Electronic Scrap• Confidential Documents

• General Volume• Reduction Needs

Tiger 4 Quad Shear ShredderThe Komar Tiger 4 Quad Shear Shredder handles your waste with primary and secondary shredding

capabilities. Utilizing a unique 4-shaft design, the Tiger 4 delivers a uniform output piece size.

Whether it’s an auto or metal turn-ings, a shredder breaks the material intosmaller, more manageable sizes so thematerial can then be sold or furtherprocessed. They break up solid chunksand bushy wads of many different typesof ferrous and nonferrous metal materials.

Sheldon Smith, marketing and salesmanager at Komar Industries, said thathis employer manufactures a variety oflow speed, high torque two and four shaftshear shredders for processing variousferrous and nonferrous metals. “Komarshredders offer heavy duty construction,wear-resistant cutters, proprietary bear-ing protection and a patented Pro CutterLocking System (PCLS) on all of ourshear shredders.

“Shredder models offer varioussizes and range in horsepower from 10to 1,000. Our custom shear cutter bladesare manufactured for specific applica-tions and come in a variety of configura-tions. Our shear shredders supplementKomar hazardous waste processing sys-tems where failure and downtime are notan option and our shredders are found insome of the toughest applications allover the world,” he said.

Smith noted that a major problemcommon with most shear shreddersinvolves the loosening of cutter stacks.This occurs when the conventional nutand bolt system cannot apply enoughforce to hold the stacks tight. The resultis poor cutting performance and damageto the shaft. He said their PCLS solvesthis problem with a compact integratedbearing and locking system, which can

provide 900 percent more force than theconventional nut and bolt method,requiring less maintenance and increas-ing uptime.

Another issue facing users of shearshredder technology is keeping dirt anddebris from contaminating the bearings.

“Komar utilizes a Proprietary BearingProtection System that insulates the bear-ing and seal from the cutting chamber,which is key to longer uptime and loweroperating cost. Our system includes

heavy splash plates, end cutter deflec-tors, labyrinth shield with grease purge,air space and specialized seal guards. Weaddress the problem of non-shreddablesbeing introduced into the shredder withauto-reversing cutter shafts and our ESP– Extreme Shock Protection technology.These features increase the life of thecutters & drives by dissipating shockfrom tramp materials,” Smith said. Elec-tronic scrap recycling is a growing trendfor users of Komar shredders. In particu-lar, their hard drive shredders are utilizedin the destruction of digital mediaincluding hard drives, PDAs and cellphones.

Magnatech Engineering’s shreddingsystems feature top feed and side feedsystems, custom layouts and engineeringservices, downstreams for ferrous andnonferrous, air systems and Z-boxes,rubber and steel belt conveyors, cat truckin-feed conveyors and electric and engine

drive systems.Bill Graveman,president, saidthat Magnatechoffers a widerange of sizesfor their sys-tems. Someexamplesinclude: 66 x90 (1,000 hp to3,000 hp), 72 x72 in the alu-minum model(1,000 hp to

2,500 hp), 72 x 104 (1,500 hp to 4,000hp) and 80 x 104 (2,500 hp to 4,000 hp).

For 30 years, Shred-Tech hasdesigned and manufactured industrialshear shredders. According to MikeDavison, applications manager, “We pro-vide equipment for the size reduction,

sorting, separation and material handlingfor metals, plastics, paper products andassorted wastes. Our shredder productline ranges from 71/2 hp electro-mechan-ical drive to 1,200 hp hydraulic drive.

The cutting chambersizes range from 17” x14” to 62” x 116”.”

Typically, Shred-Tech utilizes low speed,high torque, dual-shaftshear shredders for thesize reduction of met-als. Shaft speeds areusually 20 to 30 RPMand cutting forces rangeup to 306,000 lbs. Davi-son said this type of

shredder offers higher cutting forces,less dust creation, lower noise levels andless vibration when compared to highspeed shredders. The slow speed alsoreduces “sparking” when shreddingmaterials such as magnesium and titani-um.

Shred-Tech shredders have beenused extensively for the size reduction ofa wide range of metal products such asmachine turnings. The shredding elimi-nates “bird’s nests” for improved materi-al handling, bulk density increase andpreparation for centrifugal cleaning formaterials such as mild steel, alloy steel,aluminum and titanium. When automo-tive body panels are shredded, aluminumpanels are air-veyed into roll-off contain-ers for transport to the smelter.

Size reduction allows efficientdelivery to the containers. Steel drumsand containers for hazardous wastessuch as nuclear, paint sledges and petro-leum products are easily separated fromthe container after shredding. The sepa-rated product is then safely disposed ofor recycled. The shredded container canbe washed in preparation for smelting orefficiently disposed of.

Aluminum, in bales or loose form,and shredding of general scrap, UBCs,and construction debris is easy to sepa-rate (ferrous or nonferrous), one fromanother. The result is a clean aluminumproduct for de-lacquer and smeltingprocesses. When shredding magnesiumcastings and ingots, the material isreduced to a consistent size for tempera-ture control during smelting.

Fines produced by shredding mag-nesium are easily removed usingscreens for materials such as mild steel,alloy steel, aluminum and titanium.Titanium plate and slitter balls have tra-ditionally been size-reduced using

shears. This is a dangerous, labor-inten-sive process, but shredding eliminatesthose safety hazards and high laborcosts. Utilizing a sizing screen aftershredding produces a very consistentsize for efficient smelting.

EQUIPMENT SPOTLIGHT

N Shreddersby MARY M. [email protected]

Metals www.AmericanRecycler.comPage B4, May 2010

Manufacturer List

American PulverizerSkip Anthony314-781-6100www.ampulverizer.com

Granutech-Saturn SystemsGreg Wright877-582-7800www.granutech.com

Jordan Reduction SolutionsRichard Pyle888-733-8248www.jordanreductionsolutions.com

Komar Industries, Inc.Sheldon Smith614-836-2366www.komarindustries.com

Magnatech Engineering, Inc.Bill Graveman913-845-3553www.magnatech-engineering.com

Metso Texas ShredderChad Grohman800-531-5927www.metso.com/recycling

Riverside EngineeringRusty Manning866-764-7567www.megashredder.com

Shred-TechMike Davison800-465-3214www.shred-tech.com

SSI Shredding Systems, Inc.Joby Easton800-537-4733www.ssiworld.com

US Shredder & Castings GroupBill Tigner205-655-0614www.usshredder.com

Komar Industries, Inc.

Magnatech Engineering, Inc.

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AAA has recycled more than four mil-lion automotive batteries and continues topromote the recycling this automotive partthat 100 million American motoristsreplace each year. Approximately 97 per-cent of all the lead in spent automotive bat-teries is recyclable.

Through the automotive battery recy-cling efforts of the AAA Mobile BatteryService and the AAA Approved AutoRepair network, AAA has recycled nearly90 million pounds of lead in addition to 12

million pounds of plastic. This year, thenation’s largest motor club anticipates itwill replace and recycle an additional onemillion batteries via its roadside batteryreplacement service.

Automotive batteries have three majorcomponents: lead, acid and plastic. Thelead can be recycled and reused indefinite-ly in the production of new batteries. Sulfu-ric acid can be repurposed in three differentways. In addition to being reused for newbatteries, it can be neutralized, purified and

tested before being released as clean water;or it can be converted to sodium sulfate, aproduct used in fertilizer, dyes and otherproducts. The plastic battery cases mayalso be recycled for new batteries.

Consumers can contact their localAAA club or AAA Approved Auto Repairfacility for information on where they candrop off a battery for recycling in theirarea. To find a nearby Approved AutoRepair facility, visit AAA.com/Repair.

www.AmericanRecycler.com Metals May 2010, Page B5

EQUIPMENTSPOTLIGHT

NARTo be included in the spotlight, you

must manufacture the equipmentfeatured. We require a companyname, contact person, telephonenumber and, if applicable, a websiteaddress.

To be listed in the appropriatespotlight, please call 877-777-0737.

UPCOMING TOPICS

06/10 Plastics Granulators

07/10 Wind Turbines

08/10 Primary Reduction Equipment

09/10 Crushed Car Haulers

10/10 Wire Choppers

American Recycler is not responsible fornon-inclusion of manufacturers and theirequipment. Manufacturers are to contactAmerican Recycler to ensure their com-pany is listed in the Equipment Spotlight.

Precision engineeredrecycling solutions

Non-ferrous

sorting system

Scrap baling presses

Rotors andwear parts

Scrap shears

Shredder drive systems

High-inertia disc rotor providing more kinetic energy to power through tough scrap (optional 4-arm and fully capped versions available)

AUTOPILOT® – Industry leading feed automation technology for increased

operation efficiency

Extended shredder inlet for increased performance and maintenance benefits

Heavy-duty rejection door with integrated arms for reliable “heavies” ejection

Torsion-resisting feed yoke to effectively handle tough

scrap with improved material containment features

Ferrous downstream cleaning system

Metso Recycling North America

11451 Jones Maltsberger, San Antonio, TX 78216 • 800.531.5927 1071 Industrial Parkway North, Brunswick, OH 44212 • 800.827.92372300 South 170th Street, New Berlin, WI 53151 • 262.796.1900www.metso.com/recycling

Expect results

The most advanced shredder system built in North America.The new Texas Shredder TSH Series is the only shredder built in North America that is designed to accept disc, spider and fully capped disc (barrel) rotors. The range of sizes, beginning with the TSH88, TSH100 and TSH110, better fits the demands of today’s shredding environment and offers a wider shredder design for increased throughput, with heavier hammers for greater strike force. A large shredding chamber for more efficient “full box shredding,” robust “shredder duty” construction around the feedroll area, longer life wear parts and easier maintenance are some of the key advantages. A redesigned heavy-duty feeder effectively handles bales and logs. Contact us today for more information.

The new Texas Shredder TSH Series: Unrivaled in performance and durability.

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AAA recycles 90 million pounds of lead, batteries

Novelis Inc. has announced that ithas selected Atlanta’s Two Alliance Cen-ter as the location for its new worldheadquarters. The aluminum rolledproducts and aluminum can recyclingcompany has signed a long-term leasefor 4 floors of the newly constructed 30-story office tower.

In addition to transferring staff fromthe company’s current world headquar-ters nearby in Atlanta, Novelis will relo-cate its North American headquartersstaff from Cleveland, Ohio, into the newbuilding. The relocation of this staff,combined with other planned additions,is expected to expand Novelis’ totalAtlanta employment to approximately220 by the end of this year.

The 500,000-square-foot officetower was the first LEED Gold certifiedbuilding in Buckhead and one of just afew in Atlanta, illustrating leadership inenergy efficiency and environmentallyconscious design.

Occupancy of the new Novelisoffices will begin in late June when thefirst staff relocations are expected tooccur. The transition will continue instages through September.

Novelis selectsnew worldheadquarters

Page 30: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

Metals www.AmericanRecycler.comPage B6, May 2010

Don Roemer’s first step towards recycling waswhen he got a job driving a tow truck, and the secondstep was when he bought that business in 1976,“thinking that I knew everything about the auto andtowing business since I had worked for them.”

Roemer said that although he was living in asmall California town at the time, the area that thebusiness served included a lot of celebrity homes.Over the years, he worked on cars that belonged toSammy Hagar, David Crosby, Carlos Santana andHuey Lewis, among others.

Eventually, he closed the body shop and openeda wrecking yard. Later, he bought a pick-a-part yard. Junk cars were hard to sell atthe time, so he bought his own crusher. The business was “right on San FranciscoBay,” and while the business was doing well, regulations and local environmentalgroups were making it more and more difficult to remain in business in that area.

At the same time, Roemer’s personal life was changing. During high school, hehad dated a girl named Lynn, but they split apart, married other people, and subse-quently got divorced. Then, they met again and married. Lynn had three children atthe time, and had been working full-time to support herself and the children.

Roemer had been brought up in a household where his mother was at homewhen the kids were home, and he wanted that environment for his own family. So hestarted looking for a way to make that happen.

That opportunity arose in 1995, when the family moved to Oregon where Roe-mer planned on buying a wrecking yard. Unfortunately, the deal fell throughbecause a partner in the wrecking business didn’t want to sell, leaving Roemer outof work and without a business to buy.

He needed to raise funds, so he started crushing cars for other businesses in1996, but “the whole steel industry fell apart in late ’98 to 99.” He wasn’t makingenough money crushing cars, so he went to work for a local shredding operation,running their yards from 1998 to 2000.

While it paid the bills, it wasn’t what he wanted. “To be self-employed, youhave to have an edge,” he said. “But I was losing that working for someone else.” Hegot back into business for himself, and bought a crusher and a small yard in Grant’sPass, Oregon. “It was a scrap yard, but it was in a residential area, so there wasn’tmuch you could do,” he said.

At the time, he had six employees and he was looking to expand. Because ofthe downturn in the logging industry in Oregon, an unused sawmill was available forrent. Roemer convinced the owners that he could run his entire scrap business insidethe building, with nothing outdoors. He moved into that building in March 2005,and has been there ever since.

Now the company has 18 employees, including Roemer and his wife Lynn,“who has been at my side” in the business since it opened. He said that the sawmillbuilding offers a great workflow similar to a transfer station. Scrap comes in throughtwo doors where it is dumped into concrete bunkers, then it is moved to themachines for shearing and baling, and is shipped out of a third door. All materialgoes out the next day, with very little inventory held, except for nonferrous which isshipped every two weeks.

Eighty percent of the material that Cascade processes comes in from individu-als who haul material in by truck, car, wagon and sometimes dragged in behind alawnmower or on a sled. “It’s like a circus,” he said. “You never know what’s goingto happen. You always want to see what the next act’s going to be.”

Roemer enjoys interacting with those customers and is proud that it “makestheir lives a little better by allowing them to make some money.” While he has someindustrial accounts, he appreciates “your everyday guy” who shows up with a trunkfilled with scrap. On an average day, 70 to 90 of those average guys cross the scaleat Cascade.

The next act for Cascade is set in a brand new building in an industrial park thatis slated to open next January. The building will be smaller, but more efficient. Roe-mer anticipates that he will hire a few new employees when the company moves tothe new facility, and might increase to 25 within the next 18 months.

Roemer said that he doesn’t want to grow past 25 employees, because the com-pany would become less personal. Right now, he knows all of his employees andtheir families and is “involved with people’s kids; what goes on with them on a dailybasis.”

While Roemer still misses the people back in his small home town in Califor-nia, he said that even with the rough start, he has come to like Oregon and is nowpart of his new community. “People look at employees and customers as expend-able,” he said. “But the good ones aren’t. Business is built on relationships. I find mysuccess from that.”

A Closer LookCascade Metal Recycling

Don Roemer • 541-479-8017

by Donna Currie

—Don and Lynn Roemer

FREEADDESIGN

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Now Now that’sthat’s value. value.

Schnitzer Steel reportsstrong 2Q earnings

Schnitzer Steel Industries, Inc. report-ed diluted earnings per share from contin-uing operations of $0.62 for its fiscal 2010second quarter ended February 28, 2010.This compares with a diluted loss pershare from continuing operations of($0.18) for the same quarter of fiscal 2009.

“This marks our highest level of earn-ings since the downturn began in the firstquarter of fiscal 2009. Our second quarterresults reflect strong operational perform-ance, as well as continued broad-baseddemand for recycled metals,” said TamaraLundgren, president and chief executiveofficer.

Drivers of the results, by businessunit, for the second quarter, included:

•The Metals Recycling Business suc-cessfully capitalized on ongoing demandfrom export customers. Total sales volumesof processed ferrous metals were at recordlevels for the second quarter. The businesssaw improvements in net sales prices andmargins, with operating income of $29 mil-lion and an operating profit margin of $24per ferrous ton, up from $21 per ferrous tonin the first quarter of fiscal 2010.

•The Auto Parts Business generatedrecord second quarter operating income of$13 million, double the previous record of$6 million set in the second quarter of fis-cal 2008. The improvement in operatingprofit margin, to 23 percent, reflected astrong operational performance andimproved metal spreads. Vehicle purchasesapproximated the levels of the first quarterof fiscal 2010, excluding the benefit of thefederal Cash-for-Clunkers program in thefirst quarter.

The Metals Recycling Business sawimproved results in the fiscal 2010 secondquarter compared with recent comparableperiods.

Export customers accounted for 79percent of the ferrous sales volume. China,accounting for less than one-third of thetotal export volumes, was the top exportdestination, followed by South Korea,Thailand and Turkey, with shipments inthe quarter to 10 countries.

Nonferrous sales volumes werebroadly in line with the volumes in thefirst fiscal quarter of 2010 and were upsharply over last year’s second fiscalquarter.

Ferrous scrap net sales prices aver-aged $297 per ton in the second quarter offiscal 2010, at the high end of the range of$237 to $326 per ton for the second fiscalquarters beginning in 2007. Ferrous pricesreflected the broad-based demand in boththe export and domestic markets.

Nonferrous sales prices improvedslightly in the second quarter over the firstquarter, but were nearly double the levelsin the second quarter of fiscal 2009.

The higher volumes and prices in thesecond fiscal quarter of 2010 drove rev-enues up 45 percent compared with thesecond quarter of 2009 and 55 percentcompared with the first quarter of fiscal2010, as expected.

Ferrous and nonferrous net salesprices are expected to be improved in thethird fiscal quarter of 2010 compared withthe second quarter.

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Lead was down 3 percent in vol-ume and down 29 percent in value,down from $1.9 billion to $1.3 billion.

This dramatic drop in domesticprocessing is yet another symptom ofthe recessed economy and closely cor-responds with the slowdowns in indus-tries across the spectrum of production.Reductions in manufacturing autos, air-planes, machinery, durable goods, andthe worst new housing and commercialbuilding stats in 50 years has reducedsupplies of scrap metals. Individualsand businesses are extending the life ofvehicles leaving a shortfall for autoshredders.

“The run on commodities a fewyears ago really took a lot of the excessout of the reserve of scrap metal lyingaround. We starting to see fewer carbodies. We are within 100 miles of 4different shredders and all of them areexceedingly hungry,” said Dixon, com-menting on the central Kentucky area.

Exports were also down dramati-cally in price though not in value from2008 to 2009. The volume of ferrous,for example, increased 4 percent butdeclined 31 percent in value, a dropfrom $10.3 billion in 2008 to $7.1 bil-lion in 2009. Demand for Americanscrap metal is still refreshingly strongfrom Asia.

Marc Azous, CEO of Iron Indus-tries LLC of Seattle, buys scrap metalnationally for export. He had this tosay about the state of the industry, “Formy company, we are booming. Themarkets are very hot because there is ascrap shortage. Prices have been on therise for three straight months. We havemore demand than supply available.We have several internet sites and weget more buyer inquires than we canpossibly handle. Supplies are waydown due to the weak economy. That’swhy there is a big scrap shortfall, pos-sibly 65 to 70 million tons right now.The only reason the price has not con-tinued to skyrocket is because steelmills still have huge inventories of newsteel that has not been sold.”

Azous also said that because of thefinancial meltdown, the industry hasbecome a virtually all-cash business.Domestically, trust in banks and let-ters-of-credit has diminished. “Every-thing has to be cash in advance or cashon delivery, which ties up a lot of cash.No one will ship the scrap and wait fiveto seven days to get paid from a letterof credit. Everyone has been burned bypayment default over the past severalyears,” he said.

Taking into account all exports anddomestic processing comparing 2008to 2009, we see ferrous down 20 per-cent in volume and 49 percent value,and nonferrous down 15 percent in vol-ume and 27 percent in value.

But there are some encouragingeconomic signs. A recent poll conduct-ed by KMPG among United Statesbusiness executives found that 71 per-cent were optimistic and 63 percenthave seen higher business activity. Thevolume of American manufacturedgoods has risen slowly, up by tenths of

a percent in 10 of the last 11 monthsand trending positive.

Although credit is still very tight,the banking system has stabilized andthe eight largest banks have paid backtheir TARP investments along with $4billion in profit to the United Statesgovernment. As of this writing, thestock markets have rebounded with theDow Jones Industrial Average nearing11,000, back from the September, 2008low of 8,920.

Last year at this time, Kurt Rexius,CEO of P&T Metals Corporation, uponbeing asked how business was had onlyone word for it: “Terrible.”

Today, however, Rexius’ answer tothe same question is not only longer,but is more optimistic as well. “Overallbusiness has improved considerably. Inspeaking to other scrap metal proces-sors and recyclers, many of their busi-nesses have also been on an up-trend.

“Manufacturing in both large andsmall sized companies appears to beincreasing along with their pipeline offuture orders. A few companies wedeal with have just started noticingsmall backlogs and many are goingback to 2nd and 3rd shifts,” he said.

“Also, most of the metal commodi-ties have significantly increased inprice, many of them more than dou-bling since the same time last year,which allows for better margins in thescrap metal business.”

Rexius continued to say that, “Themain challenge, as always in times likethis, is finding scrap material at theright price. The material is out there,but competition is stiff as many otherdealers are willing to pay top dollar tosecure the material. Bidding wars drivethe scrap price up from the end user,however this does not affect the overallprice to the mill. This, coupled with thevolatility of the metals market, weighsheavily on the likelihood of making aprofit from these types of purchases.

“A further factor is the transporta-tion costs to Asia. Shipping costs, con-tainer costs and port duties continue torise as the struggling shippers andAsian governments look for additionalrevenue from an industry that is deeplyreliant on the Asian market.

“The outlook for rest of yearappears to be steady, but cautious.

There are many factors here in theUnited States, and just as importantabroad, which will affect the health ofthis currently fragile industry. We aredependent on manufacturing on bothsides of the Pacific, which appears tobe stabilizing and heading in the rightdirection.

“Construction is starting to pick upin many areas as we are seeing muchmore construction-related scrap com-pared to a year ago when we saw verylittle scrap coming from construction.Demo companies are also getting backon their feet as renovation projects arestarting up again.

“The first quarter of 2010 is finallyseeing some life for the aerospaceindustry again, as demand for titaniumand other high temp alloys continues tobuild to a point we haven’t seen inquite some time. Along with demand,of course, come higher prices for thesealloys from both the scrap side and theconsumer.

“Overall, we are extremely opti-mistic for the remainder of 2010,” Rex-ius concluded.

In the east, business is much betteraccording to Adam Weitsman, presi-dent of Upstate Shredding, the largestprivately held scrap metal dealer inNew York State, headquartered inOwego. “The higher scrap prices aregood, but bad at the same time. Bad forthe smaller guys that have to put out alot more capital, and I think you willsee a lot more consolidation happen-ing. We are just going to keep rollingour profits back into the business, keepopening feeder yards and taking a larg-er market share.”

Weitsman sees opportunities toacquire smaller companies because thecash required at higher pricing levels ismaking it hard for companies that areundercapitalized.

“We’re not having a problemacquiring scrap and we are getting his-torically high levels of material. Wehave a large trucking fleet and 80 per-cent of our scrap comes from outsideregions. We pay competitive prices,pay immediately and are open sevendays per week. As of May 1, we willreceive scrap 24 hours per day. I’mpretty positive going forward,” he con-cluded.

www.AmericanRecycler.com Metals May 2010, Page B7

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Two neighbors were talking about work, when one asked, “Say, why did the fore-man fire you?” Replied the second, “You know how a foreman is always standingaround and watching others do the work? Well, my foreman got jealous. Peoplestarted thinking I was the foreman.”

Page 32: A R Recycler $6 · PDF filethe American Iron and Steel Institute. ... ished steel products. ... Bulk vessels are an important link in the global supply chain of scrap metals,

THE 60 x 90 INCLUDES:

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Infeed belt replaced two years ago.

2004 American Pulverizor 60 x 90 Top Feed Shredder.

DC 1500 HP Quad Plus Motor with controls (Primary Motor).

AC 1500 HP Toshiba Squirrel Cage Motor with starter (Spare Motor).

Transformer

Drive Shaft

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Dual Magnetic Separator - refurbished 4 years ago. Stearns 4272 drums, gearmotor/chain drives.

Undermill Oscillator

Vibratory Feeder, frame, and chutes.

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Osborn two stage Non Ferrous trommel (fines removal, and oversize scalping).

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