METALS
Steel production increases in June
World crude steel production for the 65 countries reporting to the World Steel Association (Worldsteel) stood at 137 million tonnes for June 2014, an increase of 3.1% from June 2013.
Confirming the improvement in steel markets, Worldsteel adds that world crude steel production through the first six months of the year was 821.3 million tonnes, a 2.5% increase, compared with the same time in 2013.
Steel production in the 28-member European Union (EU-28) increased by 3.8% for the month, while Asia and North America reported growth of 2.9% and 1.7%, respectively in the first half of 2014. South America and Commonwealth of Independent State (CIS) countries reported steel production declines of 1% and 2.6%, respectively.
China’s crude steel production for June 2014 was 69.3 million tonnes, up 4.5% compared with June 2013.
Elsewhere in Asia, Japan produced 9.1 million tonnes of crude steel in June 2014, a decrease of 1.7% versus June 2013. India’s crude steel production was 6.7 million tonnes, an increase of 0.8% compared with June 2013. South Korea produced 6 million tonnes of crude steel in June 2014, up 10.8% on June 2013.
In the EU, Germany produced 3.6 million tonnes of crude steel in June 2014, an increase of 0.6% compared with June 2013; Italy produced 2.1 million tonnes of crude steel, down 3.7% compared with June 2013; France’s crude steel production was 1.4 million tonnes, an increase of 1.6%; and Spain produced 1.3 million tonnes of crude steel, up by 6.0%.
Turkey’s crude steel production for June 2014 was 3.1 million tonnes, up 6.7% from June 2013. Ukraine produced 2.6 million tonnes of crude steel, a decrease of 6% compared with the same month 2013. Meanwhile, the United States produced 7.2 million tonnes of crude steel in June 2014, an increase of 1.9% compared with June 2013. Brazil’s crude steel production for June 2014 was 2.7 million tonnes, down by 4.9% on June 2013.
Crude steel capacity utilization for the 65 countries was virtually unchanged for the month at 78.3%.
EXPORT SHIPPING
Maersk and MSC sign vessel sharing agreement
Container shipping lines Maersk Line and Mediterranean Shipping Co. (MSC) have signed a 10-year vessel sharing agreement (VSA) called 2M. They say the new VSA will provide more efficient service on the Asia-Europe, trans-Atlantic and trans-Pacific routes.
Both companies say the new agreement will replace all existing VSAs and slot purchase agreements that Maersk Line and MSC have on the three trade routes.
Earlier in 2014, the two shipping lines had tried to form a three-way agreement called the P3 Network with Marseille, France-based CMA CMG. Approval for that network to operate in China was rejected in mid-June by the Chinese government, however, based on concerns that the P3 Network would control nearly 50 percent of container vessel capacity on the Europe-to-China route.
The Maersk-MSC VSA will include 185 vessels with an estimated capacity of 2.1 million TEU (20-foot equivalent unit containers). The purpose of the cooperation is to share infrastructure (network) on the various trade routes, the two companies say. Maersk will contribute about 55 percent of the vessel space.
“I am very pleased with our agreement with MSC,” says Søren Skou, CEO of Denmark-based Maersk Line. “We share the same ambition to have as efficient and effective operations as possible. We will continue to provide our customers with competitive and reliable container shipping in the East-West trades at attractive prices. To do so we have to be innovative and take out cost while keeping a product that is best in class for our customers in terms of coverage, frequency and reliability.”
“MSC is pleased to have reached this agreement with Maersk Line,” says Diego Aponte, vice president of Geneva, Switzerland-based MSC. “It represents another positive step in our continual drive to enhance our operational network in terms of scope, scale, efficiency and reliability.”
Aponte adds, “The 2M Vessel Sharing Agreement will enable us to achieve significant reductions in fuel consumption, driving down the carbon footprint of our shipping operations. With sustainability a key area of focus for MSC, we’re delighted that this vessel sharing agreement will mean major cuts in emissions while simultaneously enhancing our service to customers.”
Maersk and MSC say the 2M VSA differs from the earlier proposed P3 alliance in that the combined market share of the two companies is smaller and the new agreement represents “a pure VSA without any jointly owned independent entity with executional powers.”
Vessels deployed in the 10-year VSA will continue to be owned (or chartered) and operated by the two individual lines, say Maersk and MSC.
The VSA is expected to start in early 2015 with the starting date conditional upon approvals by relevant authorities.
PLASTICS
SITA unveils new plastics recycling line
SITA, a subsidiary of the waste and recycling firm Suez Environnement, based in Paris, has inaugurated a new plastics sorting line at its facility in Bayonne, France. The official inauguration was attended by Jean-René Etchegaray, Mayor of Bayonne, and Yann Vincent, CEO of SITA’s Recycling Division in France.
The company says that the new facility will provide a finer sorting of plastics and allow for the opportunity to increase the production of recycled raw material while improving the quality of the plastic scrap.
The new line is equipped with the newest generation of infrared sensors, which will allow the facility to recognize new sources of plastics. This, the company notes, will allow SITA to make positive sorting of the bottles and containers, as well as separate bottles by color (blue and clean). This, the company says, will ensure the production of recycled raw materials of the best quality at a competitive price.
SITA says the new facility will give the company the opportunity to further develop end markets for plastic sheets, as well as make flakes for manufacturing fibres for padding and insulation, carpets for automobiles and new bottles and food containers.
RECOVERED FIBER
DS Smith acquires Italian paper recycler
DS Smith, a paper, packaging and paper recycling firm headquartered in the United Kingdom, has acquired the remaining 50% of the Italian recycling company Italmaceri Srl. The company had acquired its original 50% share of Italmaceri, the second largest recycling company in Italy, as part of its acquisition of SCA Packaging in 2012.
Italmaceri, headquartered in Torino, Italy, with operations in Ancona, Casarile and Novara, handles more than 500,000 tonnes of recovered fibre per year.
Miles Roberts, CEO of DS Smith, says, “The purchase of Italmaceri is consistent with DS Smith’s strategy to lead the way in recycling. It builds on our market-leading position in Europe and will allow us to grow our closed-loop recycling model in Italy, where we already have packaging and paper operations. We want to provide our customers not only with excellent packaging and a world-class recycling service, but solutions to all elements of their supply cycle.”
Italy is the fourth largest recovered fibre market in Europe. Despite the volume of recovered fibre it handles, the country’s recycling rate of 63.3% is lower than the European average of 71.7%. This difference, DS Smith says, can provide the company with the potential to target and grow volumes through the commercial/industrial and municipal markets and to expand its collections footprint.
Peter McGuinness, chief executive of DS Smith’s recycling division, says, “This is another exciting chapter within our European growth strategy. The recovered fibre from Italmaceri will secure a fibre supply stream for our recycling network, including the DS Smith paper mill at Lucca, Italy. We have taken the opportunity to invest further in an innovative business that will help deliver our vision: the power of less, which helps our customers achieve more, with minimal impact to the environment; while realizing maximum efficiency and cost gains.”
DS Smith recovers for recycling around 5.4 million tonnes of paper per year. The company operates in 25 countries and has 14 recycling facilities.
In other news, DS Smith has also announced plans to sell its extended polystyrene (EPS) businesses in Denmark and Sweden, operated under the respective names Flamingo and Cellplast, to the Norwegian plastics organization BEWi Group.
PLASTICS
PetStar opens PET recycling plant in Mexico
Coca-Cola Mexico has helped open what the bottling company says is the largest food-grade PET (polyethylene terephthalate) bottle-to-bottle recycling facility in the world. Following the investment of more than $100 million, the PetStar facility is able to process up to 65,000 tons of PET bottles per year, doubling the Toluca, Mexico, facility’s capacity, according to the company.
President of Mexico Enrique Peña Nieto inaugurated the PetStar facility. Partners in the project include the Coca-Cola system in Mexico, Arca Continental, as well as other Coca-Cola bottlers in Mexico and other partners.
The company says partner bottlers Arca Continental, Bepensa, Grupo RICA, Corporacion del Fuerte, Embotelladora de Collima and Embotelladora del Nayarrecycle will be able to recycle up to 70% of their PET bottles because of the new plant.
Francisco Crespo, president of Coca-Cola Mexico, comments, “Thanks to PetStar we are contributing to our global goal to incorporate recycled material in all our packages.”
“Sustainability is part of our business strategy in the long run, as we seek to make a positive mark on our environment and communities,” says Francisco Garza Egloff, director general of Arca Continental. “In addition to a major environmental, economic and social impact, PetStar includes cultural and educational projects because we try to also be a transformational agent in the Mexico of today and future generations.”
CORPORATE NEWS
Alba Group realigns Interseroh
The ALBA Group, an environmental services, recycling and raw materials trading firm headquartered in Berlin, is realigning its Interseroh division. To accomplish this, ALBA Group will structure Interseroh under four divisions: Reuse, Reduce, Recycle and Rethink.
ALBA says the restructuring will take into consideration the way society is moving away from a throwaway society.
“In a world with a continuously increasing demand for raw materials it is necessary to create new models for the handling of both products and waste. The ALBA Group is already one of the world’s leading companies in the area of sustainable business solutions. We intend to build on this position and demonstrate that our vision of a future without waste is not an illusion,” says Dr. Axel Schweitzer, chairman of ALBA Group’s board of directors.
To drive the realigned business, ALBA has put together a management team that will consist of Dr. Timo Langemann, Markus Müller-Drexel, Christian Petschik and Hans-Stefan Kalinowski.
EVENTS
RWM Exhibition gears up for 46th year
I2i Events group, organizer of RWM 2014, hosted in partnership with the Chartered Institution of Wastes Management (CIWM), is preparing for the exhibition’s 46th convention and exposition for the resource efficiency and waste management industries.
According to i2i events, RWM will feature participants from five industry sectors: recyclers & reprocessors, professional services, energy from waste, handling & logistics and equipment & machinery. In recent years the United Kingdom event has grown to attract around 15,000 attendees.
The annual event is scheduled for 16-18 Sept., 2014, at the NEC conference center in Birmingham, U.K. This year RWM has moved to Halls 4 and 5 and the outdoor area of the NEC, the biggest exhibition venue in the country, to showcase the industry in the scale it demands, i2i says, allowing more space for enhanced features and product demonstrations.
New this year to the RWM Exhibition is Circular Economy Connect, an area dedicated to facilitating networking for sustainability and waste professionals across commerce and industry. I2i says Circular Economy Connect is designed to allow attendees to meet the professionals and discover strategies to help expand the use of closed-loop practices and lead to greater efficiencies, whether in terms of recycling, product design or waste management. Event planners report that the area will comprise a conference theatre, a daily program of practical workshops and dedicated networking areas.
I2i also reports that a number of high-profile speakers are on the programme. Speakers include Eric Pickles MP, secretary of state for communities and local government; Sir Stuart Rose, chairman of Ocado; Andrew Bird, chair of the Local Authority Recycling Advisory Committee (LARAC); U.K. Councillor Clyde Loakes; David Palmer-Jones, chairman of Environmental Services Association; Dr. Andy Rees, head of waste strategy for the U.K.’s Department for Natural Resources and Food; and Dr. Liz Goodwin, CEO of the Waste & Resources Action Programme (WRAP).
This year’s event also features what the event planners describe as “facilitated networking,” with new dedicated areas for meeting with peers and discussing best practices.
The RWM exhibition is free to attend, accredited by the U.K.’s Continuing Professional Development certifying authority and features CIWM-approved seminar content, i2i says. Key partners and supporters of the event include CIWM, ESA and lead media partners MRW and CIWM Journal. The RWM exhibition is also co-located with The Energy, The Water and The Renewables Events.
Free registration for the show is available at https://registration2.n200.com/survey/1awt5ryrbf9kk?check=1.
For more information, and to access a link to the event brochure, visit www.rwmexhibition.com.
METALLICS
Scholz completes sale of aluminium and stainless steel business
Scholz Holding GmbH has announced the sale of its aluminium and stainless steel businesses. The scrap metal company, based in Essingen, Germany, had previously announced plans to sell off the businesses it considered noncore assets as a step in the process to realign and restructure the company.
The sale of the company’s aluminium and stainless steel businesses follows Japan’s Toyota Tsusho Corp.’s purchase of a 39.9% stake in Scholz earlier this year.
Scholz sold its 60% stake in the aluminium trading business MMG Aluminium AG to MMG’s existing management. The company also sold a 50% stake in ScholzAlu Stockach (SAS) to its management, while the remainder was sold to an unnamed firm.
Scholz also has sold its stainless steel group to a strategic Indian investor. Scholz says the buyer expects to use the purchase to extend and strengthen its stainless steel business in Europe.
The deal for Scholz’ stainless steel business is expected to be completed by the end of the third quarter of the year. The division employs around 460 people.
Following the sale of the divisions, Oliver Scholz, CEO of Scholz Holdings, says, “After the successful completion of the two disinvestments, we can now fully concentrate on our core businesses. In addition, the proceeds from the sale will make a significant contribution to such plans to reduce net debt of our group by 2015 to around €700 million.”
The Scholz Group includes numerous subsidiaries under the Scholz Holding umbrella and employs a total workforce of about 6,000 throughout the world.
PLASTICS
Eurometaux applauds EU recycling goals
The Europe-based metals association Eurometaux has released a statement welcoming the proposed recycling of packaging on the Circular Economy that the European Commission recently introduced. While applauding the overall goal of the program, Eurometaux cautioned that some suggestions would need to be adjusted.
In the statement, the association says the packaging program remains too weight-focused, and also notes that metals are essential to moving to a resource- and energy-efficient society. The organization says the priority should be to ensure that as much recyclable material and end-of-life products as possible are recycled in efficient conditions to recover as much valuable material/metals as economically and technically possible.
Eurometaux also has called for a continued dialog on ambitious although pragmatic measures to promote material recovery in Europe. The organization welcomes different elements of the Circular Economy package, including the requirements on waste exports that will help fight against illegal shipments of waste, the progressive landfill ban on recyclable materials, the reference to resource efficiency criteria to be developed for eco-design requirements, the request for better reporting of data and the link with innovation and ambitious recycling targets.
However, in its statement, Eurometaux says it believes the package still focuses on the management of waste from a weight perspective, and not on the recovery of valuable material and its circular management. The group says it welcomes the reference to quality recycling and the request to clarify the calculation method for recycled materials in order to ensure a high recycling quality level. It also welcomes the call to member states to take measures to recover critical raw materials. Some of the cited weaknesses of the Circular Economy package, according to Eurometaux:
- an unclear definition of material recovery, with confusion between the steps of recycling, collection, pre-processing and end processing;
- a need for quality targets during collection and recovery steps and greater focus on the types of materials recovered;
- a need for universal quality standards and quality treatments for output fractions, particularly if they require further processing elsewhere;
- questions over the need for separate targets for ferrous and nonferrous metals that could generate extra or unnecessary infrastructure costs; and
- an unnecessary focus on specific waste streams such as hazardous materials already covered by existing legislation.
KERBSIDE
Recycling hub to open at UK port
SITA UK, a subsidiary of France-based Suez Environnement, has signed a partnership agreement with Forth Ports Limited, a large United Kingdom-based port operator, to create a major recycling and resource management hub at the Port of Tilbury.
Forth Ports owns and operates eight commercial ports in the U.K. and manages and operates an area of 280 square miles of navigable waters, including two specialized marine terminals. The company also provides marine services.
The newly signed partnership includes SITA UK acquiring Nordic Recycling, which was previously owned by Forth Ports Ltd., for an undisclosed amount. Nordic Recycling, based at Tilbury Dock, includes the 100,000-tonne-per-year capacity materials recovery facility (MRF) and a recycling collection business.
As part of this agreement, SITA UK will deliver a new alternative fuels waste material processing facility at the Port of Tilbury, which will process both solid recovered fuel (SRF) and refuse-derived fuel (RDF). The facility is part of a multimillion-pound investment designed to complement the MRF currently operating at the port.
The Port of Tilbury and London Container Terminal provide SITA UK with an opportunity to transport alternative fuels and secondary raw materials both domestically and internationally by road, rail and sea. As part of the agreement, the Port of Tilbury also has awarded a 10-year contract to Nordic Recycling to provide waste management services at the port.
David Palmer-Jones, CEO of SITA UK, says, “I am very pleased to welcome Nordic Recycling to SITA UK. We look forward to working with our new colleagues to further improve the efficiency of the materials recycling facility and to expand our recycling activities in the southeast of England.” Palmer-Jones also said the investment would create new jobs and enable the southeast to divert a significant amount of its waste material from landfill.
Charles Hammond, CEO of Forth Ports, says, “This new long-term partnership is a significant achievement for our business and we are delighted to be working with our multinational customer SITA UK.”