SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014 / 2015 End-of-life Vehicle Recycling: Bee’ah focusing on Sustainability The world’s powerful shredding machine From four wheels to no wheels in 60 seconds Our car shredding and recycling facility is the most advanced in the region. Considered as the world’s most powerful shredding machine, it’s capable of recycling 100 cars a day. The latest facility to join Bee’ah’s integrated waste management solutions, it’s part of our vision of building a sustainable future. ONE MAN’S SCRAP IS ANOTHER’S TREASURE Since 1982 Copart has been selling salvaged cars. Copart is now the leading online re-marketer of vehicles, selling over 2 million per year with more than 180 facilities across the world. In Dubai, we auction around 150 vehicles every week ranging from: MOTORCYCLES USED CARS COMMERCIAL VEHICLES SALVAGED CARS For further assistance, please contact us on infouae@copart.com or +971 (0)4 885 6949 Yard address: Plot No. 500 – 663, Dubai Industrial City, Sheikh Mohammad Bin Zayed Road (311) www.copartmea.com 3 For Advertising Contact: Mohammed Faraaz Sales & Marketing Executive m.faraaz@mediafusionme.com mobile: +971 55 1476474 General Management Publisher Media Fusion FZE, P.O. Box: 40203 Ras Al Khaimah, Media City UAE Dubai Office Tel.: +9714 2970512/13, Fax: +971 4 2976 830 Website: waste-recyclingme.ae Licence No RAKIA 92 - MFZ 04 08 1070. Head of Operations Dr. Kayyum Ali Bohra Editorial Editor Dr. Swaliha Shanavas swaliha@mediafusionme.com Accounts Sankesh Pandey accounts@mediafusionme.com Design & Graphic Art director Toufique Ebrahim Sulaimani admin@mediafusionme.com Head of Advertising & Marketing Taher Patrawala taher@mediafusionme.com mobile: +971 55 1091443 Sales & Marketing Executive Mohammed Faraaz m.faraaz@mediafusionme.com mobile: +971 55 1476474 Marketing & Publishing Coordinator Arvah Bohra arvah@mediafusionme.com mobile: +971 55 1053443 Richfield, Ohio 44286 USA Phone: (330) 523-5400, Fax: (330) 659-0823 Media Representative in ITALY Mr . Fabio Potestà MEDIAPOINT & COMMUNICATIONS SRL Corte Lambruschini - Corso Buenos Aires, 8 V° piano - interno 7, 16129 Genova - Italy Tel.: +39 010 5704948, fax: +39 010 5530088 info@mediapointsrl.it Printing: International Printing Press Web Designer Faraz Siraj it@mediafusionme.com Circulation Sajjad Ahmed Media Representative for USA Recycling Today Media Group Mr. James R. Keefe, Publisher jkeefe@gie.net 4020 Kinross Lakes Parkway, Suite 201 Reproduction in whole or in part of nay matter appearing in waste and ecycling magazine without the prior written permission of the publishers is prohibited by law. Opinions and views expressed in waste and ecycling do not represent the views of the publishers and the editorial staff of the magazine. The publishers do not guarantee the accuracy of the information; neither will they indemnify any losses arising through the use of the information. All marketing information is subject to approval by clients. value loves waste Used catalytic converters often contain precious metals of considerable value which can be recycled and recovered by a reliable and trusted partner. With over 100 years of service and an established culture of integrity, BASF Metals Recycling can provide customers with superior overall value. When waste is valuable, it’s because at BASF, we create chemistry. www.converter-recycling.basf.com SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 Our recycling services include: ■ Automotive catalytic converter substrates ■ Spent chemical catalysts ■ Industrial resins, filters and sludges ■ Targets and shields ■ PGM jewellery and dental scrap Email precious-metals@basf.com Cinderford, UK Milan, Italy Rome, Italy Shanghai, China U.S. & Canada +44.1594.827744 +39.03.6251.2563 +39.06.4199.2289 +86.21.3750.1228 +1.800.336.8559 WASTE AND RECYCLING ME Contact BASF Metals Recycling to learn the value of your waste materials: BASF is a full service provider of precious metals services and leverages its more than 100 years of experience to create a tangible competitive advantage for customers. 7195_Motiv CCM_297x210_4C_RZ.indd 1 23.06.14 17:20 55 COVER STORY End-of-life Vehicle Recycling: Bee’ah focusing on Sustainability Bee’ah, a leading provider of integrated environmental and waste management solutions,has the most advanced facility in waste management to join its existing facilities: the world’s most powerful machine for shredding cars and scrap metal. The facility is considered to be part of Bee’ah’s complete waste management solution. The car recycling service is considered to be the first of its kind in the UAE, representing an environmentally-friendly way to dispose of cars while extracting valuable materials. Car recycling helps both people and companies to grow, by contributing to saving the environment and its resources. Additionally, it returns materials back into the economy cycle. 6 The machine, known as the ‘Red Giant’, is considered to be the perfect solution for dealing with tough materials – such as car bodies – in large volume. With a throughput capacity of 200 tons per hour in MSW or 150 tons per hour in C&D, the 44-ton Red Giant is fast and efficient, with tracks to allow for mobility around Bee’ah’s facility. Bee’ah’s car shredding and recycling facility processes cars and light metal scrap, separating and reclaiming unique metals, glass and plastic. It is also capable of processing wood, plastic, trees, cars, solid building materials, iron and non-iron metals of widths up to 120mm. It takes just 50-60 seconds for the facility to completely process a car. In line with the new facility’s capabilities, Bee’ah is in the process of WASTE AND RECYCLING ME - www.waste-recyclingme.ae establishing agreements with international certified car part remanufacturing facilities in the US and Europe for all parts that are dismantled to be recycled as remanufactured parts that meet the original manufacturers’ specifications. Recycling becomes increasingly important as our society’s increased production and consumption rates rise. Advanced ways to sort quality material from waste are necessary to ensure the value of industries that use recycled materials, especially since the increasing demand for recycled materials requires us to look for and implement the latest technologies. Bee’ah operates one of the world’s largest landfills in Al Saj’ah, Sharjah. Bee’ah’s center for waste management SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 environment and achieve added value for commercial enterprises, by following the best global practices and following its commitment towards business owners. With a clear vision and commitment to performance, the company commits to build partnerships with likeminded, environmentally-conscious organizations, as well as taking a main step forward to growing and achieving sustainability. Bee’ah’s team has a number of experts who have more than 30 years of experience in operating and managing waste management facilities and landfills. They aim to create a future of sustainable waste management that is more convenient and cost-effective for both Bee’ah and Sharjah, including solutions such as collecting and recycling commercial waste – including WASTE AND RECYCLING ME covers 3.75 square kilometers, equivalent to approximately 525 football fields. It represents an entirely new way of waste management in the region, featuring a number of the most advanced facilities for material restoration and recycling. The company collects, restores and sells materials such as plastic, iron, aluminum and tires, which are sorted and reused into plastic products, fibers, car parts, metal cans and garden furniture. Bee’ah is currently looking for scrap cars that can be processed through its new facility, and invites institutions and authorities to contact the company. The company follows a strategic plan for waste management in Sharjah, with goals to divert 100% of waste from landfill. Bee’ah aims to strengthen the waste disposal tools, collecting and cleaning fleets, recycling programs for organizations to ensure that all waste products are completely managed in an environmentally safe way. Bee’ah influences the thoughts, attitudes and behaviors of people, communities, companies and cities, allowing them to achieve positive sustainable growth by providing them with the infrastructure and support needed to achieve their environmental goals. The company continues to build and support local talents, encouraging all employees to become environment leaders. It continues to invest in innovative technology and customer service, to ensure offering diverse expertise across the waste management industry. This year and for the fourth consecutive year, Bee’ah received several accolades at the Facilities Management Middle East Awards. Bee’ah was recognised across four categories: Sanitation & Waste Management Company of the Year, Education & Development Initiative of the Year, CSR Initiative of the Year, and the newlyintroduced FM Executive of the Year Award, which was won by Bee’ah Group CEO, Khaled Al Huraimel. Bee’ah is so proud to have received industry-wide recognition from the Facilities Management Middle East Awards – this is a strong testament to Bee’ah’s operational excellence and the stellar work of our teams. Bee’ah has 77 COVER STORY long been committed to enhancing the wellbeing and quality of life of UAE communities. Bee’ah wants to serve as a powerful instigator of eco-change across the Middle East, and redirect environmental thoughts, attitudes and behaviours in individuals across communities, businesses and cities. Such accolades are further proof that we are succeeding in our mission. Bee’ah was recognised for its successful approach to minimise waste, with a particular focus on the company’s inhouse recycling facilities. His Excellency Salim Bin Mohammed Al Owais, Chairman of Bee’ah has been selected the Environmental Visionary Personality of the Year 2013 for his contributions to 8 raising awareness around environmental issues and influencing the community to make sustainable decisions. Bee’ah set up the Waste Management Centre in Al Saj’ah, which represents an entirely new approach to managing waste in our region with a number of industrial, commercial and residential waste diversion operations and facilities. Here, collected waste is sorted and sent to the different state-of-the-art facilities managed and operated by Bee’ah along high international standards. These include the Construction & Demolition Waste Recycling Facility; the Tyre Recycling Facility (the first of its kind in the region using environmentally cryogenic processes); the Material Recovery Facility WASTE AND RECYCLING ME - www.waste-recyclingme.ae (the largest in the region and third largest in the world); the Compost Plant; industrial and wastewater lagoons; Wekaya, the medical waste storage and treatment facility; the metal shredding facility; and the landfill (one of the largest in the world, and one of the only landfills reengineered using enhanced safety practices). Bee’ah’s pioneering education, development and CSR initiatives also make the company a true leader in its field. Over the past 3 years, the Bee’ah School of Environment (BSOE) has emerged as the region’s top environmental education programme – one that includes online and offline eco-lesson plans for teachers and students in English and Arabic. The programme is embedded within school curricula, environmental school workshops, annual awards, scholarships, and green school student councils. To date, the BSOE has engaged over 170,000 students in over 210 schools. The BSOE’s main target is to empower students with eco-knowledge and promote positive environmental responsibility. Its online school portal boasts features, applications, environmental educational games and an interactive forum for residential, commercial, industrial and mixed-use areas of Sharjah. Bee’ah is also expanding its geographical reach, going beyond the borders of Sharjah, into other regions of the UAE and the GCC. Bee’ah has opened branches in Ajman, Dubai and Abu Dhabi, where it is collecting recyclables and providing environmental consulting services to private organizations. Bee’ah is also in discussions with key entities in Saudi Arabia, particularly with Jeddah and Riyadh, to lead environmental change in the Kingdom and eventually across the Middle East in the years to come. SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 certification – a global benchmark for CSR principles compatible with the highlyprestigious International Organization for Standardization (ISO) accreditations. The Middle East’s leading and award winning integrated environmental and waste management company has expanded its operations locally and regionally. Bee’ah is set to launch Sharjah’s first ever air quality management programme. It will sponsor a continuous Ambient Air Quality Monitoring (AAQM) programme, measuring greenhouse gas emissions and particulate matter in the atmosphere across WASTE AND RECYCLING ME students and teachers. myBee’ah, an environmental loyalty programme and community awareness, advocacy and education initiative, engages individuals from all walks of life through myBee’ah. ae; the myBee’ah environmental rewards programme; the myBee’ah reverse vending machines (RVMs), and the myBee’ah annual Walkathon. Bee’ah’s all-encompassing CSR approach is to make environmental sustainability part of how communities and businesses operate. After all, Bee’ah is a CSR-derived organization and the holder of the first UAE MVO 8000 99 TECHNOLOGY Iris-Mec Looks To Expand Into The Middle East Region Appreciated to the Global Automotive Recycling scene, is Italy-based company Iris Mec Srl. In only a few years, Iris Mec has become a leader specializing in the production of equipment designed to recycle materials derived from endof-life-vehicles. Iris Mec prides itself on engineering solutions with the operator as their primary focus. Their products are extremely user friendly, efficient, technologically advanced and safe. The success of the company is directly attributed to 10 its loyal client base worldwide who strongly value customer service and quality all rolled into one. In fact, as affectionate customers can attest, Iris-Mec ensures immediate assistance. The spare parts warehouse guarantees 24-48 hours delivery throughout Italy and the world. In September last year, they reached a new and important step: the ISO 9001 certification with TÜV WASTE AND RECYCLING ME - www.waste-recyclingme.ae SUD: ambitious target for quality assurance on the production system and company planning. Iris Mec builds a wide range of products that assists auto recyclers as well as automobile manufacturers (including BMW, Mercedes and FIAT) with the quick and efficient removal of hazardous materials from retired automobiles. They offer tailormade solutions to meet the needs of 15 t h International Automobi le Recycl ing Cong ress IARC 2 015 ■ ■ ■ ■ ■ ■ European ELV Directive towards 2015 How do car manufacturers and the industry close the recycling loop E-mobility: Its influence on car recycling and dismantling Reports about illegal treatment and export Best available recycling technologies New car design IVING DR N The next top quality congress in ELV recycling will focus on: IN TI O March 25 – 27, 2015, Berlin, Germany NOVA An exhibition area is integrated into the conference facility where vendors meet their clients. Cocktail receptions and a networking dinner create an excellent atmosphere to get in touch with your business partners, colleagues and competitors. Plant tours to leading recycling companies and car manufacturers in the vicinity of Berlin, different workshops and test drives are organized for all participants. ICM AG, Schwaderhof 7, 5708 Birrwil, Switzerland, www.icm.ch, info@icm.ch, +41 62 785 10 00 SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 market share as the push for more environmentally sustainable practices continues throughout the industry, both domestically and abroad. They now look to expand their operations in the growing waste management sector of the Middle East Region and are focused on finding sales partners to entrust the distributorship and assistance with regard to their products. WASTE AND RECYCLING ME responds effectively to the needs of those who daily deal with the disposal and the drainage of cars offering the MRG machine. This LPG / Methane gas recovery unit transfers up to 80% of the liquid gas left in the fuel tanks of End of Life Vehicles, and safely and easily transfers the LPG to a separate storage container vessel for use in other applications. Iris-Mec looks forward to being your one-stop-shopping solution when it comes to planning and purchasing equipment designed to take your auto recycling business to the next level or expanding your existing scrap recycling business to include additional product lines. All the Iris-Mec production is of high quality and adheres strictly to safety standards. Iris Mec offers products that no one else in the industry has and as such is poised to capture additional IARC 2015 all small, medium and large scaled businesses alike, be it through new, used or customized equipment. Solutions include simple and easy to use fuel tank drills for gasoline extraction, fluid drainage systems (including coolant, brake fluid, gear oil, and windshield washer fluid), catalytic converter shears, tilting lifts, storage tanks, pumps, storage tank monitoring stations, Freon removal systems (R12, R134 and even the latest R1234YG) or automated wheel presses that can easily accommodate wheels up to 21” in diameter and process up to an industry leading 140 wheels/hour. Among the products, appreciated worldwide is the RBT dismantling rig for End of Life Vehicles; Safely & securely holds the vehicles in position, thus allowing the operator to remove the engine and gearbox, the catalytic converter and other valuable items for resale. Still in the safety context, Iris-Mec 11 11 11 INTERVIEW The simplicity of selling and buying vehicles through online auto auctions By Swaliha Shanavas Carlos Sabugueiro Some of the best concepts start with a simple thought, and through trial and consistent effort the innovative processes take shape, dramatically impacting the community involved in that particular field. Willis Johnson, Chairman of Copart Inc, established his business with a single yard in California in the early ‘80s. The entrepreneur had an idea he thought would greatly help his business, as well as those looking for good solutions, particularly auto insurance companies. Johnson, who was picking up and transporting vehicles from one point to the other and taking them eventually to an auction, mostly working for insurance companies, decided to take over the process himself by providing not only the transport/logistics, but also the facilities for storage, keeping the assets in safe custody until they are ready for sale, and then conducting the auction for the owners ensuring they get the best sale prices. Thus Copart took shape in 1982. “What really transformed the company was his vision of what the internet would soon be; he was way ahead of the game, eventually taking Copart public and using the capital injection to undertake a huge expansion program,” says Copart’s Middle East head, Carlos Sabugueiro. Johnson registered Copart.com, created a site and posted pictures online of vehicles available at some of his facilities, which was 12 groundbreaking at the time. The company floated on the NASDAQ in 1994 and in the next 10 years they opened a new facility every 6 weeks across the USA. Copart is now a leading online re-marketer of vehicles with more than 170 facilities across the world. It provides suppliers, primarily insurance companies and used car dealers with a full range of remarketing services exposing their products to 900,000+ members in 142 countries and they’re now “selling in excess of 9,500 cars a day”. Buyers include licensed dismantlers, re-builders, used vehicle dealers, exporters and the general public. Corpart deals with quite a wide spectrum of vehicles, but predominantly they deal in standard passenger vehicles and some commercial vehicles such as small vans, trucks and so on. In 2012, Copart established operations in the UAE, with its headquarters in Dubai. “In recent years, we’ve expanded to Brazil, Germany, Spain, India and now we’re incorporated and have been trading in the UAE for 2 years,” says Sabugueiro. “We recently moved to Dubai Industrial City, where we are constructing our regional corporate headquarters. With about 26 acres of land, the new facility will be able to hold in excess of 2500 vehicles”. VB3 – Unique online auction platform Copart’s online auction system has transformed the way the industry does business, by providing an efficient, WASTE AND RECYCLING ME - www.waste-recyclingme.ae transparent and globalised system that allows buyers and sellers to do business in an easy and swift manner. The patented auction technology, “Virtual Bidding 3”, is state-of-the-art, according to Sabugueiro. “I don’t think there’s any other auction system like it in the world. “VB3” was relaunched about a year ago and as part of that launch we also expanded it through to smart phones and tablets. It is the first ever global auction that you can view without actually being a member. But if you want to bid, you can register and go through the normal process of becoming a member.” Smooth and transparent process All their auctions are run online, and one can visit the yard to inspect the vehicles, though ultimately one has to bid through the internet. “This has not only increased the transparency of the business, but has also exploded the ability to sell these vehicles to a global audience,” Sabugueiro states. The high end auction system caters to both seller and buyer as it can be customized to suit one’s requirements. “As a seller you have the ability to set a reserve, so you are always in control of the process.” For instance, if a person feels his vehicle is worth a certain amount, he can set that as the internal reserve. The system just indicates ‘on reserve’, and no one knows the amount. The moment the bidding crosses that number it changes to ‘pure sale’, which means the car is a definite sale. But if it doesn’t reach the level expected, one doesn’t have to sell. Copart will communicate to the seller the result, and can also electronically communicate to the bidder the expected amount, so he can take a decision on that. As a buyer, the experience is smooth as well, as the system will automatically bid for the person if they like. One can look up vehicles, search for favourites and check out various models, a facility that a lot of buyers use, the CEO says. Moreover, if someone is not confident of using the computer/ internet, the company will educate them on the procedures and help with the process. Expanding operations The company is expanding in the region with focus on the GCC countries in the short term. Two major projects are set to take off as the company has recently opened offices in Oman and Bahrain. As for Saudi Arabia which Sabugueiro terms “the jewel in the crown” going by the sheer size of the country, the burgeoning population and the number of cars on the road – they are looking at various options and are in talks to possibly set up a joint venture. At present, the company doesn’t have a direct presence in Africa, though in Nigeria there is a market maker - an independent third party that acts effectively as a local office for Copart. Carlos Sabugueiro says nobody else out there does what they do to add value to the process. “Our core competence is online auto auctions. And we’re here to make the sale of a car, irrespective of its condition, a fast, easy and transparent process. We just want to take away the tediousness of the process and make it a smooth, enjoyable experience for both buyer and seller.” SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 they predominantly deal with insurance companies, so most of their work is within traditional salvage, notes Sabugueiro. At the moment they are working with about 19 insurance companies in the UAE. Their inventory continues to grow, and he says Copart will soon broaden their operations to include clean cars. “We’ve recently concluded a major deal with Dubai Police, where we will be receiving confiscated and abandoned vehicles. And we’ve tied up with the likes of Gargash, Al Rostamani, Juma Al Majid Group etc. where we’ll start to sell their trade-in vehicles. We also deal with Dubai Taxis and the RTA. We are in the process of being approved by Dubai Courts to start handling repossessed vehicles from finance companies and banks so we can also help them sell these internationally.” Copart has been appointed as a “trusted agent” by RTA Dubai and they’ll be first to have access to their new online ownership transfer system, says Sabugueiro. “We’ll be able to process ownership for you from our facility, which would save a lot of hassle customers.” Copart has the ability to expose a salvaged asset to a global market with highly transparent processes, says the CEO. “We’re exposing the vehicles to buyers you might never have seen or met, therefore creating competition online. Our system cannot be fixed or the auction fiddled with; one cannot predetermine the price as the bidder does not know who their competitor is, unlike at a physical auction where there are the chances of manipulation and collusion. Taking care of logistics Transportation is actually the buyer’s responsibility, but the company provides shipping services “and because of our scale, we’ve been able to negotiate some pretty aggressive rates for Copart buyers”, he notes. “Many buyers knew Copart even before we arrived, as they were using Copart in the USA. Now we are accepting payments for Copart US members in this office, so people who come in and pay for the car they bought the night before in the USA will also pay for the shipping at the same time. Thus, it will help them in terms of not having to TT money overseas and they can pay in dirhams locally, or Riyals in Oman or Dinar in Bahrain.” Sabugueiro states. WASTE AND RECYCLING ME So, has the UAE market adapted well to their advanced technology? “The UAE is the largest foreign buyer of Copart US vehicles, and in 2013 we sold and exported through Jebel Ali approx. 85,000 vehicles,” Sabugueiro comments. Interestingly, he says when they set up business in the UAE they started off with a physical auction for a couple of weeks. A few weeks down the line Copart also introduced an internet auction, and soon the highest prices over the internet became the starting prices for the next physical auction. Later they reversed the process and the highest bid from the physical auction became the starting bid for the following internet auction. In the third week following this change, one person turned up for the physical auction “and we had the strange experience of running a whole auction with just one person” the CEO says. Within two months the physical auction ceased as nobody needed to attend as it was easier and more convenient to bid online from home or the office. Copart has over 1500 members in the UAE alone and runs weekly auctions in Dubai selling 160+ cars a week. Presently, Also, smaller buyers looking for one or two cars can easily bid for the vehicles through our system, which creates competition and helps in terms of the price.” “Over a period of time we’ve cleaned up the buyer base and most of the people realise the seriousness of the auction. If a person bids and wins, he knows he has to conclude that sale. And that’s what the sellers / insurance companies like, as it makes the payment process a lot smoother.” 13 13 FOCUS Design for Recycling In an interview given to Swaliha Shanavas, the Head of Recycling BMW Group, Steffen Aumann talks about their philosophy and approach to auto design and recycling, revealing their holistic approach from the early stages of vehicle development including the design, selection of materials and components right up to the production of the vehicles in a manner that enables their components to be largely reused or recycled efficiently when they reach their end-of-life. Intelligent design solutions On BMW’s approach to manufacturing vehicles, also keeping in mind environmental and resource considerations, Steffen Aumann says even in the early stages of vehicle development, the decisions their designers and engineers make, including the selection of materials and components, will determine the reusability of their vehicles decades into the future. “In line with our principle of Design for Recycling, we create our vehicles in such a way that their components can largely be reused or recycled efficiently once the vehicle reaches the end of its life cycle.” In the initial development and architecture phase itself they design their vehicles and processes with a view to minimising the use of valuable resources, he states. “By processing manufacturing 14 waste, we gain secondary raw materials while protecting the environment. We also save resources through the targeted use of renewable raw materials. We can draw on established systems for the recycling of end-of-life vehicles, components and materials.” Recycling programmes and take-back initiatives “In the early 1990s – long before the legal regulations were established – the BMW Group began to build an extensive network in the European Union for the recovery and recycling of end-of-life vehicles (ELV),” Aumann continues also adding that each ELV returned to the BMW Group in this network is recycled at no charge to the last owner. In Europe, the BMW Group has contracts with some 2,500 vehicle recyclers. In 2015, the legally required recycling rate for end-of-life vehicles, WASTE AND RECYCLING ME - www.waste-recyclingme.ae components and materials will be raised to 85 percent reuse and recycling of materials and 95 percent overall recovery. They began to prepare for these requirements at an early stage so that all vehicles marketed by the BMW Group since 2008 already meet the requirements set for 2015, he notes. “At the same time, our BMW Group Recycling and Dismantling Centre (RDZ) near Munich (another one is scheduled to become operational in Shenyang, China in 2016) is working continuously to come up with new solutions for vehicle recycling. The RDZ is currently trialling recycling concepts for the new vehicle components found in hybrid and electric models. Batteries from vehicles of this kind can either be passed on to existing networks of recycling businesses or used, for example, to produce photovoltaic systems.” Opportunities in the Middle East & Asian markets Aumann says End-of-Life Vehicle Regulations are already implemented in Japan and South Korea, while China and India have started the development of ELV regulations. “The amount of cars in these markets will lead to a profitable recycling system for end-of-life vehicles. The implementation of a working recycling system is supported by rising material values.” Legislation Legislation can definitely help to bring positive changes in recycling worldwide, and on the other hand, recycling is of great interest for the automobile industry anyway, he comments. Intelligent design, the use of secondary and renewable raw materials and recycling concepts enable them to reduce their consumption of valuable resources. Maximising value and protecting resources “At the end of its lifecycle every car offers raw materials of good value. It’s a business case to recycle vehicles. BMW uses intelligent design solutions called Design for Recycling, to ensure that our cars can be easily and profitably recycled. Every dismantler can receive information regarding treatment of end-of-life vehicles via IDIS (International Dismantling and Information System). These aspects increase the attractiveness of recycling BMW cars,” Aumann notes, adding that these standards along with their global network for returning used components, for instance old catalytic converters and in the future thermoelectric generators, are helping them to protect resources and make more efficient use of raw materials. SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 In Aumann’s view, the successive introduction of new forms of drivetrain and the modified vehicle concepts that result are presenting new challenges in the use of resources. One example, he says, is the increased application of components made of innovative, lightweight carbon-fibrereinforced plastic (CFRP), which is used for the passenger compartments of the BMW i3 and BMW i8. “When talking about the reuse of carbon fibres from manufacturing waste, we have to distinguish between pure carbon fibres and fibres with a resin matrix. All fibres without a resin component can be reused directly as a raw material. Plasticreinforced parts are first separated from the resin using an established method (for example pyrolysis) and then processed further.” They are also looking into innovative solutions for the reuse of old batteries from electric cars with the aim of extending the life cycle of lithium-ion batteries developed specifically for use in the BMW i3 as far as possible. “To this end, we are developing various concepts for potential reuse. Used batteries can, for example, serve as stationary power storage, thus optimizing the use of renewable energy sources as well as providing reliable power supply to buildings,” he states. WASTE AND RECYCLING ME Challenges in adopting best practices 15 15 Catalytic Converter Recycling “Improved collection efficiencies and emission regulations will influence auto catalyst recycling dynamics” David Freidinger BASF’s solutions and capabilities For 150 years, BASF has been a full service provider of Precious Metals products and services. We are a leading global manufacturer of precious metals products which are used in a variety of industrial applications, including automotive emissions control catalysts. We committed to growing our position in the platinum group metals (PGM) recycling market and providing industrial customers with a high-quality source of these metals for the long-term. BASF offers “full loop” metal management services – from raw metal supply and scrap reclamation to financial risk management. We provide confidential, value enhancing solutions to our industrial clients seeking to optimize their PGM portfolios. Globally and vertically integrated, BASF is available around the world, 16 BASF offers “full loop” metal management services, and as part of their long-term strategy, they are actively pursuing opportunities in the Middle East and Asia says David Freidinger, Vice President, Precious Metals Recycling & Refining , BASF Corporation in an interview with Waste & Recycling Middle East. Following are excerpts. and around the clock to provide strategic solutions to our customer’s PGM requirements. Our network has global reach bringing together a vast collection of resources that include trading offices, refining and production facilities, JVs, primary PGM products as well as key exchanges and bullion centers. The company currently has three state-of-the-art recycling facilities for the recovery of PGMs from precious metal bearing waste materials such as spent automotive catalysts. In the US, they are located at Seneca SC and Lincoln Park MI and, in Europe; we have our facility located at Cinderford, UK. They refine precious metals from both ceramic and metallic automotive catalytic converters. BASF is dedicated to providing our industrial customers worldwide with a radically better way to access, leverage, protect and manage the compelling WASTE AND RECYCLING ME - www.waste-recyclingme.ae value of PGMs based upon insightful market data and decades of proven Chemistry and Catalysis experience. We are proud to offer comprehensive products and services that meet the dynamic PGM demands while using smart, ecologically-minded processes. Significance of catalytic converter recycling & BASF’s competitive edge When an automobile is scrapped, the precious metal contained in the catalytic converter can be recycled. This creates a supplementary supply source versus mining for the production of new catalysts – helping to reduce the carbon footprint. This is a significant benefit of catalytic converter recycling. Additionally, BASF has a robust history in automotive catalysis and we have access to all major global and local OEMs. This, in turn, provides Precious metal refining and recycling entails many safety concerns given its labour intensive manufacturing processes. At BASF, safety is a top priority – it is essential to what we do and how we act. Safety isn’t about a number or metric, it is making sure standard operational procedures are being adhered to and making sure our team uses the proper form when lifting heavy items and follow safe procedures when handling tools and equipment. Additionally, BASF has a zero incident culture which is reinforced at every level within BASF. At all our recycling operations and facilities, BASF strives to work towards meeting its commitment of achieving Key challenges The challenge to make sure safety remains a top priority. It has to do with being vigilant and making sure your team has the tools available they need to keep it top of mind and applied in everything they do. At BASF, we are continually ensuring that safe procedures are being utilized and safe behaviors are being followed. This is reinforced by our zero incident and safety education culture. Opportunities in the Middle East, Asia & expansion As part of our long-term strategy, BASF is actively pursuing opportunities in the Middle East and Asia and remain focused on our expanding our presence as well as our customer base. We believe these regions are key growth areas based on continuous economic expansion and, in turn, auto catalyst recycling opportunities will evolve in these markets. BASF continues to make investments to our operations. Our steadfast focus remains on making improvements to our manufacturing infrastructure for automotive catalysts recycling. The goal is to optimize our production efficiencies to process material at a faster rate as well as recover higher amounts of PGMs for our customers. Further, we believe that this industry has tremendous opportunities in the short and long term. Industry outlook Future demand for PGMs is heavily influenced by the auto industry as sales are projected to increase globally. Given the increase of cars on the road, this has, in turn, raised the number of autos reaching their end-of-life enabling growing opportunities for PGM recycling. Moreover, improved collection efficiencies and emission regulations will also influence auto catalyst recycling dynamics. SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 HSE issues and BASF’s strengths and maintaining recognized best practices in processing, environmental and health and safety standards. The protection of our employees, communities and the environment remains crucial to successful manufacturing and sustainable operations. WASTE AND RECYCLING ME us with exclusive insights to the dynamics of this market providing a 360 degree vantage point on PGMs such as platinum, palladium, rhodium and more. Our ingrained heritage and capabilities in Chemistry and Catalysis enable us to leverage our knowledge in these areas and apply them to our auto catalyst recycling and refining. 17 17 ELV DE-POLLUTION PROCESS “Every legislation is only as strong as the way it will be controlled and executed!” Peter Kaltenegger Critical issues in ELV recycling There are certain critical issues to be considered in end-of-life vehicle recycling. These hazards begin right during the logistical process when ELVs are transported and stored in the scrap yards, with the need to organise tanks to store liquids safely, as well as the post processing machinery, says Peter Kaltenegger, Vice-President of SEDA. “One of the major issues that we face during the ELV recycling process is the step to reduce and avoid as much as possible environmental hazards while the liquids are taken out of the vehicles. The drainage step is one of the 18 The Vice President of SEDA, Peter Kaltenegger talks about end-of-life recycling issues and the opportunities as well as challenges involved in the process in an interview with Swaliha Shanavas. most important to reduce the risks in a significant manner. Explosive liquids, hazardous fumes and ergonomic reasons are just some facts that make a professional de-pollution very reasonable. Hereafter, a big step is taken so that during the post de-pollution process the environmental risks are kept to a minimum.” Opportunities for dismantlers As for the opportunities, Kaltenegger says up to now they are mainly to gain raw materials out of the vehicles, “but there are more and more thoughts to go deeper into the dismantling and try WASTE AND RECYCLING ME - www.waste-recyclingme.ae to separate the most valuable parts to earn a better profit. There are nowadays many solutions that simulate the electric environment of vehicles in order to test the dismantled material. Once tested this increases again the possibility of generating more profit out of the dismantled parts.” There is also the matter of not seeing just the duty to remove the hazardous elements out of an ELV, but also to gain a profit out of them. “And keywords that show such opportunities are: re-use, re-sell and recycling!” he states, adding that public relations are important especially in the recycling industry. Role of legislation In his view, legislation is very important as many examples in various countries and regions prove. “Recycling companies need to be aware of the danger of the environment and the risks for their workers by not using proper There are various dangers that evolve out of the ELV recycling, which include environmental as well as health issues, says the VP, also stressing on the importance of working with professional equipment in order to protect the employees who are very frequently exposed to these hazardous liquids. “It also makes the operations safer because the handling of the vehicles is properly defined. There are numerous recorded accidents that are caused by accidentally exploded airbags, as well as fires that started during unsafe operations with the drainage of cars.” The use of proper equipment as well as trained employees helps increase the efficiency and the cycle time, and it also reduces the risks to safety and other issues. De-pollution issues “Regarding environmental issues it seems very obvious that de-pollution is a very efficient way to preserve nature from Fluid de-pollution Most fluids that can be recovered from ELVs are valuable in one way or the other for different industries, and in today’s world, globalization helps to generate viable options in order to make a profit out of ELV fluids, he states. “Gases as well as LPG can be reused without further treatment. Oils, cooling liquids, brake fluids can also be reused after a special treatment procedure that companies have developed to recycle these fluids. Professional equipment helps to extract the fluids as clean as possible which in turn increases the value for the following treatment through other companies.” equipment. Here the legislation of the European Union regarding the ELV directive is a best practice example,” the VP emphasises. Major key points are for instance: • • • • By 2015 the reuse and the recycle quota of ELV’s has to be at least 95% By 2007 the return of any ELV to a take back point will be free of charge for the last user ELV treatment facilities carrying out de- pollution need to be licensed as authorised treatment facilities (ATF’s) Minimum technical requirements: o Removal of batteries and liquefied gas tanks o Removal or naturalisation of potential explosive components (e. g. airbags) o Removal and separate collection and storage of fuel, motor oil, gearbox oil, hydraulic oil, cooling liquids, antifreeze, brake fluids, air conditioning system fluids o Removal, as far as feasible, of all components identified as containing mercury “Of course every legislation is only as strong as the way it will be controlled and executed!” Kaltenegger concludes. SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 Dangers and key challenges involved in ELV recycling contamination. Through a professional de-pollution station many issues can be eliminated. These stations are designed in order to meet ergonomic and safety standards for employees to reduce accidents. Furthermore, the fumes and liquids exposure are reduced to a minimum,” Kaltenegger notes. Again, looking at the costs and benefits that result from working with proper equipment the ROI is met pretty quickly, the reasons for that also being the reduced working time through efficient and easy handling of the equipment; and the clean separation of fluids that can be resold, reused or recycled, he explains. WASTE AND RECYCLING ME “Due to the fact that environmental issues are very sensitive in this particular industry, professional and state-of-the-art equipment can help to put the right spot on the company and make people aware of the positive aspects of such facilities.” 19 19 ANALYSIS Auto Recycling in the Middle East By Subhash Joshi The Middle East (ME) in general and the Gulf Corporation Council (GCC) in particular is a fast growing market for the automotive industry. The combination of relatively high living standards and a growing population has been the key driving force behind the growth in auto sales in the region. The five key factors responsible for the steady growth of the auto industry in the region are as follows: • Continuous population growth rate, which is nearly 5.2 per cent in the last 10 years • Improved local economic indicators such as gross domestic product (GDP) growth and increased government spending in the last five years • Improved per capita income • Auto financing programmes by automotive cars agents / banks / leasing companies with flexible rates and conditions; now, even 100 per cent financing is available • Lack of public transportation options, leading to a relatively higher rate of car ownership amongst the population Vehicle Sales: If we look at last 15-year sales of vehicles in the GCC, there has been an almost 250 per cent growth in demand. In 1999, the GCC sold nearly 0.53 million vehicles, which has reached to 1.38 million in 2013. In 2009, the GCC vehicles market witnessed a 12 per cent decline due to global economic recession, but it recovered well. The recovery was mainly driven by increasing government investment in basic economic activities (including infrastructure), which directly affected per capita income and affordability for vehicles. In addition, it is pertinent to mention here that, today, there is no proper public transportation system in most of the countries in the GCC; hence, dependency on personal means of transportation is very high. Countries in the GCC rely highly on government expenditure to drive economy and this trend is likely to continue in future, as well. If we look at a competitive analysis of government expenditure as percentage of GDP, the Kingdom of Saudi Arabia (KSA), Oman, and Bahrain are among top five countries, which have higher dependency on government expenditure. It is as high as 39.9 per cent in the KSA. The increased government expenditure directly affects income levels in the economy and this Exhibit 1: Vehicle Parc Growth, the GCC, 2014-2020 25.0 19.4 16.5 13.8 15.0 10.0 5.0 0.0 2014 KSA 20 UAE 2017 Kuwait Oman 2020 Qatar WASTE AND RECYCLING ME - www.waste-recyclingme.ae Bahrain GCC Source: Frost & Sullivan Source: Frost & Sullivan Millions 20.0 Subhash Joshi increase finds its way to the vehicles market as the region has very limited dependency on public transportation system. It is pertinent to mention here that the Gen Y population1 (1 Gen Y population also includes working youth; hence, the maximum age limit is kept at 30 years) in the KSA, Kuwait, and Qatar is more likely to invest in owning a car rather than investing in property or international travel. Development of economy beyond oil is another key driver for the growth of the automotive industry in the region. Economy in the GCC is diversifying into ever widening set of business. The KSA, which is the largest automotive market in the GCC and the Middle East, is working towards developing economy beyond oil. The key focus areas for the Government are to create employment for the locals and increase industrialization in the country, which in turn increases household income and affordability for owning vehicles. There are certain restrains as well to this growth. Countries in the GCC are investing in Public Transportation Systems, which is likely to have long-term impact on the vehicles sales. Recently, the KSA Government have announced establishment of Metro Rail in Riyadh. Based on these drivers and restrains we expect the passenger vehicles industry to witness a Compound Average Growth Rate (CAGR) of 5.2 per cent between 2014 and 2020. Vehicles sales re likely to reach at 2.03 million units in 2020 from 1.38 million units in 2013. Vehicle Parc: To understand the overall automotive metal recycling market in the GCC, it is very important to know the number of vehicles currently in operation, their average age, and the possible changes in future. If we look at industry statistics of the overall vehicle parc, it was estimated at 12.9 million units in 2013. The vehicle parc has witnessed a CAGR of nearly 8.8 per cent between 2007 and 2013. As mentioned earlier, the KSA is the largest market followed by the United Arab Emirates (UAE), Kuwait, Oman, Qatar, and Bahrain. In the overall vehicle parc, the KSA accounts for nearly 58 per cent. We expect this market to witness a CAGR of 6.0 per cent over next seven years (2013-2020). The KSA and the UAE will continue to dominate the market. As discussed above, it is important to understand the vehicle age. At present, nearly 23 per cent of the vehicles are more than 11 years old, out of which almost 7.7 per cent are more than 15 years old and close their End of Life (EOL). A detailed analysis of vehicle age provides us with more alarming numbers in 2020. We expect to have more than 27 per cent vehicles in above 11 years age category; in fact the 15 years and above category is likely to account for nearly 12 per cent share in parc (nearly 2.7 million vehicles) in 2020. This means, a larger number of vehicles are reaching their EOL. Globally, recycling end-of-life vehicles (ELV) is a key industry Vehicle Age Break-up 2014 2020 <=3 Years 27.6% 26.5% 4 to 6 Years 23.7% 22.6% 7 to 10 Years 25.6% 23.3% 11 to 15 Years 15.3% 15.5% >15 Years 7.7% 12.1% Source: Frost & Sullivan Exhibit 2: Vehicle Age Break-up, the GCC, 2014 and 2020 due to two important factors. The environment relevance and the quantity of recycled material it generates, which provides huge savings for the industry stakeholders. Today the “Environment Relevance” has very high importance in promoting ELV, globally. It allows recycling of valuable materials and, at the same time, provides solution against hazardous components, which come from abandoned vehicles, improper dismantling practices, and increase in amount of Automotive Shredder Residue (ASR). Talking about the facts, in 2010, the total automobile fleet was globally estimated at 1,018 million units where almost 63 million vehicles deregistered and 40.2 million such vehicles have reached their EOL. Together, this has generated 21.5 million tonnes of recycled metal. Now, looking at the future of this industry, a detailed analysis of the global vehicles industry suggests that there is likely to be 79 million vehicles to reach their EOL and this will provide an opportunity to generate nearly 40.1 million tonnes of recycled metal. Source: Frost & Sullivan Exhibit 3 clearly represents the growth potential available in the global Automotive Metal Recycling Market, but it is very important to understand what it means for the region. As of today, there are very limited laws to define ELV in the GCC and very limited recycling facilities as well. Frost & Sullivan did a detailed analysis to understand how many vehicles will reach its EOL in the coming six years in the GCC. It is very important to understand that most of the old vehicles (which have already crossed their EOL) are exported to countries in Africa or the CIS. WASTE AND RECYCLING ME Exhibit 3: Opportunities available in Metal Recycling through ELV, Conservative Estimates, Global, 2014 (2006, 2010, 2014, and 2020) SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 Source: Frost & Sullivan 21 21 ANALYSIS To estimate the future of the ELV market in the region, we assumed that legislations will restrict above 15-year-old vehicles to operate and most of these vehicles will not be exported to any other country outside the GCC. After considering all these assumptions, we applied global norms of percentage of vehicles reaching ELV on the regional parc. Based on this, in 2014, there are almost 0.48 million vehicles reaching its EOL and in 2020, these numbers are likely to reach 1.17 million. The key question that rises here is what does the above mean for the recycling industry? The following four scenarios will help make our estimates more realistic: • Scenario 1: There will not be any regulation for ELV in the GCC • Scenario 2: Regulation only limited to the UAE for ELV • Scenario 3: Regulation limited to the KSA and the UAE KSA for ELV • Scenario 4: ELV Regulation applicable for the entire GCC Source: Frost & Sullivan Exhibit 4: Opportunities available in Metal Recycling through ELV, the GCC, 2020 Conclusion: Strict ELV regulation in the GCC can result in 0.9 million tons of automotive metal recovery, which offers a sustainable business model for recyclers and parts remanufacturers (this is limited at present). In addition, it will offer the following benefits: • Resource Efficiency: Increased rates of reuse, recycling, and recovery can yield environmental benefits by reducing disposal to landfill and reducing the use of virgin materials and energy. It will also provide reductions in Landfill Costs • Economic Benefits to Public Authorities: Deal with the problem of abandoned vehicles and to tackle vehicle crime It is also critical to understand that automobiles are amongst the most recyclable of engineered goods. They offer up to 90 per cent rates of recovery, of which, 65 per cent of the weight of a typical saloon car is high-grade steel, aluminium accounts for another 7-8 per cent, and other useful materials like copper, noble metals in the catalytic convertors, etc. can also be recovered. In fact, the plastic and rubber used in the cars can be recycled too. Recycling a normal saloon car can conserve 2,500 Kg of iron ore, 1,400 Kg of coal, and 125 tonne of limestone reduce the release of 1,000 Kg of carbon dioxide and save more than 1 megawatt of energy. At present, there are several challenges to the Automotive Recycling Industry in the region. Lack of a unified regulation and infrastructure, an unorganised sector, many stakeholders involved (no single group comes forward to own the process), limited attention for ecological issues, and non-existence Vehicle Manufacturing / Assembly Infrastructure are the key challenges. As a key industry partner, Frost & Sullivan recommends involvement of all stakeholders to implement strict laws, a public-private partnership (PPP) for an efficient and viable recycling industry in the GCC, and green marketing efforts to brand the automotive recycling industry as a professional organisation selling green, economical, and safe recycled parts. The author is Industry Manager, Automotive & Transportation Practice, Middle East & North Africa at Frost & Sullivan 22 WASTE AND RECYCLING ME - www.waste-recyclingme.ae EVENT 15th International Automobile Recycling Congress IARC 2015 Event to take place at Hotel Palace, Berlin 25-27 March 2015 At the opening session of the conference, two keynote speeches will be delivered by distinguished speakers: Erik Jonnaert, Secretary General of the European Automobile Manufacturers’ Association (ACEA) will focus his speech on “The role of the automotive industry in the context of ELV recycling”. Wolfram Thomas, Group Chief Officer for Environment, Energy and New Business Areas of Volkswagen AG will talk about “Environmental protection – Driving innovation”. The conference program also includes tool box and company spotlight talks. A large exhibition area is integrated into the conference facilities, where vendors meet their clients. Cocktail receptions and a networking dinner create an excellent atmosphere to get in touch with business partners, colleagues and competitors. Volkswagen is offering test drives with their e-Golf and e-up! Participants of the IARC 2015 will have the exclusive opportunity to visit the following leading plants on March 27, 2015: • BMW, Leipzig (car manufacturing plant) • SRW metalfloat – Scholz Recycling, Espenhain (post-shredder technology plant) • TSR Recycling, Brandenburg (ferrous metal recycling plant) ICM AG organises conferences specialising in the fields of recycling cars, electronics and batteries. These waste streams have been among the world’s fastest growing commodity markets for years. ICM is a Swiss company which has organised conferences in Europe, North America and Asia since 2000. For more information and graphic material contact: ICM AG Susann Schmid, Schwaderhof 7 5708 Birrwil, Switzerland Phone: +41 62 785 10 00 Fax: +41 62 785 10 05 info@icm.ch; www.icm.ch SPECIAL SUPPLEMENT: AUTO RECYCLING, 2014/2015 The key topics to be addressed include: • How do car manufacturers and the recycling industry close the r ecycling loop? • The role of the automotive industry in the context of ELV recycling • New car design • Best available recycling technologies • Reports on Asian, US and European car manufacturers • Next generation recycling processes and equipment • European ELV Directive towards 2015 • E-mobility: Its influence on car recycling and dismantling • Recycling challenges of new automotive materials: Nickel metal hydride, lithium-ion batteries, carbon fibres, glass, lamps, catalysts WASTE AND RECYCLING ME The 15th International Automobile Recycling Congress IARC 2015 organised by ICM AG will be held from March 25 – 27, 2015 in the Hotel Palace in Berlin, Germany. Delegates from industry, authorities and academia will discuss and present news and challenges of the manufacturing and end-of-life vehicle (ELV) business. The conference will bring together the various links in the ELV recycling chain such as car manufacturers, metal and plastic scrap traders, recyclers, shredder operators and policy-makers from all over the world. Over 250 international industry leaders are expected to attend the conference. 23 23 FRANCE We design and manufacture machines and equipments for car dismantlers in full compliance with the European standards. We offer free consulting and planning for the car drainage area. DERICHEBOURG GERMANY - BMW MERCEDES M A LY AD IT Italian quality and international markets confidence 100% IN THE WORLD N E I CHINA SWEDEN ITALY U.S.A. 4m3 IBQ+ Ulta compact drainage systems RGF Automatic recovering system freon and oil RBT Tilting rig SR Wheels press CNT - Junction box for cutter ISK NEW Fluid drainage system TVP - Pneumatic glass cutter IBE NEW Fluid drainage system www.iris-mec.it IRIS-MEC S.r.l. Via Pessina, 15 - 42028 Poviglio (RE) - Italy Phone +39.0522.481047 Fax +39.0522.481935 commerciale@iris-mec.it
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