Martijn van de Poll, managing director at Netherlands-based Reukema, says the company isn’t seeing an oversupply of red metals in Europe as some U.S. buyers are experiencing. While Europe has “quite a number of well-established red metal smelters and refineries,” Poll says Reukema, an international trading company, also sells locally sourced red metal scrap to smelters in Korea, Indonesia, Japan, China, India and Russia and sees growing opportunity in Asia.

Recycling Today connected with Poll to get his perspective on the red metals market in Europe and learn about new developments at Reukema that keeps the company competitive in the global marketplace.

Recycling Today (RT): What has demand been like for red metals in Europe?

Martijn van de Poll (MP): We have seen weaker demand in Europe. Factories are full, but demand is weak on their side. 

We do not see an oversupply yet in Europe. LME has been decreasing in the first half 2019. Our suppliers are partially still keeping their stock, waiting for better price levels.

RT: Where are the strong end markets for red metals? Are there any potential new markets that Reukema is watching?

MP: Europe has quite a number of well-established red metal smelters and refineries; however, we know that demand in Europe varies during the years. We service smelters in Korea, Indonesia, Japan, China, India and Russia. We see new opportunities mainly in Asia, as China is tightening its import regulations.

RT: How has the red metals market changed over the years? How can companies respond to lower pricing and weaker demand?

MP: Focus is very much on quality. Margins are slim. We can’t afford to deliver bad quality material. This will only become more important in the future. Reukema is continuously investing in technologies to better assess the quality of the material it purchases and sells. We are looking at ways to improve the quality in such a way that it meets the requirements of a specific smelter.

We have the advantage to work on a long-term basis with most of the big smelters; therefore, we are managing supply and demand. If Europe is weak, we still service smelters in Asia or other parts of the world having demand.

Reukema wants to be the prime partner of the top smelters worldwide for sourcing its scrap metal. We aim to control the quality of the scrap 100 percent and to process the scrap where needed in order to bring it within the requirements of the specific smelter.

In the future, focus will be on quality of the scrap and more focus on the local market in Europe for Reukema.

RT: What is the Reukema’s key to success to growing and improving business and making a profit in a changing marketplace?

MP: Our focus is on simplicity. That is not easy. We want to be the most predictable player in the industry. We have a strong focus on digitization. The customer journey with our suppliers and buyers is 100 percent digital, and completely transparent. We work with technology partners and universities to realize our goal to be able to assess the quality with 100 percent accuracy for each delivery of scrap metal. We also aim to sort material in order to make the scrap as per the quality requirements of the smelters.

RT: What is ReukemaDirect and how has developing that tool improved international trading for Reukema?

MP: ReukemaDirect is an e-commerce platform, where the complete customer journey is captured: real-time price and product information per supplier, logistics, quality assessment and quantity and quality reports.

ReukemaDirect is a great success. All our suppliers and buyers are using it. It is not so much focused on the deal itself. Many trades are still taking place over the phone or face-to-face via WhatsApp.

ReukemaDirect has helped us to improve our customer experience by providing real-time and transparent information, improve efficiency, reduce operational risk, improve the ecological footprint (100 percent digital, no more paperwork), as well as improving traceability and compliance. Equally important is that we collect data, which enables us to improve our customer service and retention daily.

We have been developing ReukemaDirect completely in-house. Recently, we have taken steps to make it a standalone company with standalone management. The company’s name is TradeDirect. The software will be made available to other companies. Reukema will step back as a sole shareholder, but we will keep using ReukemaDirect as our own dedicated platform. TradeDirect will be launched by early 2020.

During the Plastics Industry Awards in London on Sept. 27, DuPont Teijin Films, Chester, Virginia, received the award for the U.K. Best Recycled Plastics Product 2019. The award was for DuPont’s LuxCR depolymerization process, which represents the only source of bioaxially oriented polyethylene terephthalate (BOPET) film for which high levels of chemically recycled polymer that is compliant with EU food legislation. 

According to a news release from U.K.-based RECycling of Used Plastics Ltd. (RECOUP), the judges of the competition recognized LuxCR depolymerization process as a real demonstration of chemical recycling that is available today.

“We are extremely proud to have won this award and it reflects the hard work and dedication put in by the team to get us to this stage of our project,” says Steven Davies, EMEA packaging market manager at DuPont Teijin Films UK Ltd. “We believe the LuxCR process can be seen as a case study to prove the economic and technical feasibility of chemical recycling working alongside mechanical recycling, opening up a wider range of high value, technically advanced end uses for plastic waste.”

The Plastics Industry Awards first launched in 2001 and are held annually in London. The awards, which are organized by Plastics New Europe, are dedicated to rewarding innovation and exceptional performance in the plastics industry. The U.K. Best Recycled Plastics Product award has been around for six years and was supported and promoted by RECOUP in an effort to drive forward recycled plastic markets, demonstrating commitment by the industry to circular economy and resource efficiency.   

“In a consumer atmosphere where we are experiencing such plastic phobia, it is important we show advances being made in improving circularity both with existing mechanical recycling and how new chemical recycling technologies can be used alongside existing approaches,” says Stuart Foster, CEO of RECOUP, about the awards. “It is crucial that the public start to see how progress is being made in this arena and that plastics are moving forward to a more circular and sustainable future.”

Listening to community needs and filling gaps are two of the main roles of Des Moines, Iowa’s Metro Waste Authority (MWA) led by executive director Michael McCoy.

Having that stake in the community is why MWA started a number of innovative programs, including Compost It for businesses and residents, a R&D recycling program to help construction companies get LEED credits, a cardboard only collection and recycling program, a curbside household hazardous waste pickup and most recently approving plans to build a new single-stream material recovery facility (MRF) for Central Iowa.

“Innovation is a big thing here,” McCoy says. “All of these ideas have come from somebody inside our agency or someone pushing from outside and we take it and run with it. If you bring ideas to us, we’ll vet them and you’ll be a part of the launch.”

MWA, which is made up of 17 board members who are elected officials, formed 50 years ago to open a landfill in the region. The authority, which represents 22 communities, currently manages two landfills, two transfer stations and contracts with haulers, but doesn’t own a material recovery facility (MRF).

McCoy says last summer was an “eye opener” for MWA when its current processor Mid America Recycling, Des Moines, delivered truckloads of high-quality baled mixed paper to the landfill. The company reportedly had difficulty finding buyers for the material.

“We have one of lowest contamination rates at 10 percent, and we have some other partners in the space that continued to move mixed paper during this time,” McCoy says. “It was a lack of relationships and inability to move product and we were not going to accept that.”

McCoy adds MWA has observed material entering the landfill that could be diverted and a need for updated equipment and technology at the MRF to process today’s material stream. MWA conducted a feasibility study, which found the MRF would cost about $24 million and two years to build, which coincides with the end of MWA’s contract with Mid America in 2021.

“It’s not the greatest business model in the world today,” McCoy admits. “Markets are the lowest, but I can tell you demand of the people is high. Do we want a sustainable model for the next 50 years or are we going to roll the dice every month?”

For every new project, MWA brings in a round table of stakeholders to discuss issues. For example, McCoy says the entity is hosting a regional food waste forum with grocery stores and restaurants to discuss the possibility of implementing food waste in the composting program. When Des Moines' privately-owned R&D recycling company went bankrupt, MWA brought in developers, architects and construction companies to discuss the launch of an “immediate” R&D recycling program. McCoy says MWA will approach the MRF project the same way with “thoughtful, strategic partnerships."

He adds that MWA has already built partnerships with buyers over the past two years through its cardboard recycling program.

“On the financial side, on the surface you may say it’s cheaper to go to landfill, but if you really crunch the numbers it’s not,” McCoy says. “At the landfill, we sell air space. If you put 20,000 tons of recyclables in landfill, I’m losing that space to sell for waste.”

MWA issued a request for proposal (RFP) for a supplier to provide equipment for a facility that can process 25 tons per hour or 45,000 tons per year, with the option to expand to 35 tons per year or 60,000 tons per year. The authority awarded the contract to CP Group, San Diego. Bulk Handling Systems, Eugene, Oregon; Machinex, Plessisville, Quebec; and Van Dyk Recycling Solutions, Norwalk, Connecticut, also bid on the project.

“It’s fun when you put an RFP out and you get four bidders," McCoy says. "It means they want to do the work and they’re hungry. It was a great bid process.”

Along with focusing on technology and optical sorting to remove packaging from the material stream, MWA will also use CP’s antiwrapping screen to reduce downtime and increase fiber recovery. Glass will also be separated at the front end of the system. MWA is also launching glass collection points in the region in effort to remove glass from the recycling stream.

After touring several facilities, McCoy says several sites shut down at least twice a day to remove plastic bags from machines, which is why MWA is installing the screen. He adds Scott County, Iowa, has had to do many retrofits over the years to be able to process excess material outside its service area, so MWA is preparing for future growth as well having the capacity to meet Central Iowa’s needs today.

“We’re focusing on what we can do upfront,” McCoy says.

MWA owns land adjacent to its transfer station where the MRF will be built. MWA will work together with CP Group and engineers on the design of the building over the next few months, McCoy says.

In addition, MWA is partnering with Iowa Economic Development Authority to identify local end markets for material, including breweries to use recycled glass to make new bottles. The authority is looking to establish contracts to guarantee regional companies a supply of recycled material.

“I don’t think we were lining up to build a MRF, but it’s obvious it’s what we need to do when it comes down to the future of recycling for Iowa,” McCoy says.

Although Lakeshore Recycling Systems is less than a decade old, the Chicago-based company has already made an impression in the waste and recycling space. When Lakeshore Waste Services and Recycling Systems Inc. merged in 2012 to form the company, its first year consisted of a couple hundred employees and nearly $50 million in sales. Fast-forward to today, the company’s nearly 1,000 employees and $184 million in revenue in 2018 has earned it the No. 21 spot on Waste Today's inaugural Top Haulers List.

Lakeshore Recycling now operates a growing fleet of natural gas-powered trucks and four material recovery facilities, servicing thousands of residential and commercial customers, including all 642 schools in the Chicago Public Schools system.

Waste Today magazine caught up with company CEO Alan Handley on the company’s latest growth and what he sees for its near-term future.

Waste Today (WT): What technology have you implemented over the past five years that you think has contributed to your success?

Alan Handley (AH): We did a large RFID [radio-frequency identification] implementation in Chicago about four years ago, which I think has allowed us to gain a fairly significant market share in areas where

Alan Handley, Lakeshore CEO

sustainability and recycling are probably closer to the forefront [of people’s minds] than maybe in the general population. It's embedded in all of the trash receptacles for a community, and then when those trash receptacles go over our readers that are mounted on our trucks, it bills you by how much you actually throw away versus just billing you a set amount each month. So, that's been extremely helpful for us, and it helps with the people who are generally more progressive and really want to try to change the recycling algorithm that's present in the trash collection cycle. 

We're also continually looking for ways to introduce automation, whether it be robotics or other forms of automation, to lower the cost of recycling so that we can make it more sustainable in the longer term because the cost keeps creeping up. The way we view it is that the only way to really make recycling sustainable in the long-term is to reduce the cost of recycling going in and reducing the labor associated with it.

WT: How big of a focus is merger and acquisition activity for your company and why?

AH: It's a big part of what we do. Organic growth is great, but it takes a little bit longer, so we've been aggressively growing through acquisition over probably the last six years. We've completed 12 acquisitions throughout Chicago, in western Illinois and then into southwestern Wisconsin. And we continue to have a pretty active pipeline as well. We probably have close to $400 million of acquisition targets, and we have probably two or three deals that we'll close this year. So, it's a big part of what we do, augmented, of course, by growing the organic side of our business.

WT: What do you think it takes to be successful in the waste business?

AH: I think for me and for the company as a whole, we have found three main things to be very successful. One is a continued emphasis on our people. It's a tight labor market, and it's hard to find good, qualified talent. When we do find them, we want to make sure they have a good, meaningful career with us and that we provide an opportunity for them to grow with our company. So, we spent a lot of time and focus effort and energy into really developing our people and making sure we have a good pipeline of talent as we look forward. That's been a big emphasis for us, and I think it's key to the future. 

The other thing that we've been focused on is hauling safety. I know everyone talks about it a lot, but we run in a very urban market in Chicago and in some other areas in southwestern Wisconsin, and I can't overemphasize the need for our drivers and the general population to come home safe every night. We put a lot of time and effort into making sure that is addressed and that it's at the forefront of everyone's thoughts. The people are critical to my success and the company's success. We can't do it without them. We can't do it if they're not safe. 

I think the other one is that we really do have a culture that we've developed of trying to be as innovative as possible: embracing new technologies, listening to our customers and making sure that you don't just do things the old traditional trash way. A great example is when Highland Park came to us, a large suburb north of Chicago, and they wanted that RFID technology because they wanted to only have people pay for what they threw away and not penalize them for recycling. And so we work with them. We spent many six figures to develop that program, whereas everybody else told them that they wouldn't do it. So, I think by doing that—by listening to people's ideas and what they're trying to accomplish and focusing on that and making that a priority—I think that has helped us really create a culture of saying, "Hey, let's think about that. Does that work? Does it make sense? Can we all make money doing it? Can the company and the community achieve what they're trying to accomplish at the same time?" And it goes for our customers as well. So, I think those three things are really the hallmark of who Lakeshore is, and I continue to press for all three of those things in earnest pretty much every day.

WT: Can you talk about any notable sustainability initiatives or investments you’re planning on making in the future?

AH: We probably recycle more material than any other company, I would argue, in the Midwest. We control close to 2.5 million tons of material to come through our facilities. It's very close to 35 to 40 percent of Chicago’s and southwestern Wisconsin’s waste stream, and out of that material, pretty close to 50 to 60 percent is recycled or diverted. Our entire corporate DNA and everything we talk about is how we keep material from going to the landfill. I'm pushing to try to find end products for about everything we possibly can. 

So, everything that we do in our company is a sustainability initiative. It's really why I think we've been very successful over the last six years or so. We are very different in the market from pretty much anybody else you can think of. It’s mostly because from the very founding days of our company, we set that out to be our goal—that we wouldn't sacrifice environmental stewardship or sustainability for profit. And we believe in that. They really aren’t mutually exclusive—you can be profitable and do the right thing for the world.

"We really do have a culture that we've developed of trying to be as innovative as possible: embracing new technologies, listening to our customers and making sure that you don't just do things the old traditional trash way." 

-Alan Handley, Lakeshore Recycling Systems CEO

WT: How has the hauling business changed over the years, and how has your company remained relevant in that time?

AH: I think it's dramatically changed, at least in the markets that we operate in, in the short time that we've been a company. I mean, you look at things like the tightening of the labor markets and automation and technology, and I can't believe how much things have changed just in the last five years. There's a host of things, both good and bad, that we face every day. Frankly, we struggle to continually recognize them, find ways to overcome them and [find] the keys to thrive. 

For instance, drivers: It's very hard to find drivers, and safety goes hand-in-hand with trying to find good drivers. So how do we tackle that? Then you have minimum wage issues in Chicago—it was $8 or $9 an hour in 2012, and now we're pushing that a $12 or $13 an hour. So, while it doesn't sound like a lot in absolute dollar terms, when you're talking about the number of employees that we have that work at that level, it has a dramatic impact on costs. It's also never been more dangerous to operate heavy machinery in major urban markets when you have things like scooters, bicycle lanes and distracted drivers and walkers. It's quite a challenge. 

So, you know, it's not an industry, at least in Chicago, for the faint of heart. But we work with good customers, we continually push sustainability as part of our business, and I think because of those three things, we’re able to overcome much of the headwinds that could get us. 

WT: What are your company’s major goals for the future? Are there any new innovations or upgrades in the pipeline?

AH: Lakeshore will be the largest independent waste and recycling company in the greater Midwest. That's my goal, and that's our company's goal, and I think we're well on the way to becoming that company. We'll take advantage of every opportunity we can to achieve that goal, whether it be through acquisition or through organic growth. I believe wholeheartedly that the country, and the Midwest particularly, is really in need of having a strong, independent, well-capitalized company operating in these markets, especially in light of Waste Management’s Advanced Disposal acquisition. So, we plan on continuing to grow as we have and to seize on those opportunities as they come about. 

Our goal was to be a progressive, recycling-first, diversion-first, customer-focused independent recycling and waste company, and then be a dominant player in the markets in the greater Midwest. As far as how we get there, I think we’ve spent a lot of time as of late on the robotics and automation side. We believe that that's a game-changer for recycling, and I continue to look at ways to add more and more robotics and more automation to the recycling side of our business. And that's not just on the consumer side, but also on the industrial and the construction side as well.