Newsworthy

METALS

Novelis unveils new automotive aluminium alloy

U.S.-based Novelis has introduced a new automotive grade high-strength aluminium alloy series, Advanz 7000, that it says is designed for safety-critical components of vehicle structures.

The company says Advanz 7000 is two-to-three-times stronger than other automotive aluminiums used in high volumes today and can be used to manufacture components such as bumper systems, crash ring components and door intrusion beams.

According to Novelis, the new alloy series will offer a significant weight reduction compared with current high strength steels in the marketplace, enabling automakers to further reduce the weight of vehicles while ensuring high levels of passenger safety.

“As more automakers look to reduce vehicle weight and improve fuel economy, high-strength aluminium alloys are playing an increasingly critical role in vehicle design,” says Jack Clark, senior vice president and chief technical officer for Novelis. “Novelis’ Advanz 7000-series will drive the industry forward by offering automakers additional weight savings with superior strength for optimal safety performance.”

The Novelis Advanz 7000-series expands the Novelis family of aluminium alloys designed to address automakers’ needs for strength, formability and styling. Customer testing is currently underway, Novelis says.

Todd Summe, Novelis vice president, global research and development, says the new alloys will be used to produce automotive sheet at Novelis facilities in Asia, Europe and North America.

METALS

Little gain for EU steel despite rising demand, Eurofer says

Eurofer, the Brussels-based association of the European steel industry, says European Union steel demand is expected to rise by 1.5% in 2015 on the back of sustained momentum in Europe’s economic growth, despite ongoing uncertainty. However, European producers are not expected to benefit, as improving steel demand will be met by imports of the metal, anticipated to be up 5% this year, the association says.

Eurofer issued a statement in July reporting that EU gross domestic product (GDP) growth in the first quarter of 2015 sustained the momentum seen in the second half of 2014 and that domestic demand appears to be strengthening. This GDP growth is currently being driven by private consumption, the association says, with low oil prices, weak inflation, low interest rates and improving wage growth in several EU countries paving the way.

However, investment growth is lagging as uncertainties—including the Greek debt crisis, structural constraints in the euro area, slowing global growth and geopolitical risks—weigh on confidence. The expected improvements in economic fundamentals in 2016 underpin the scenario of investment gaining momentum to become a key driver for EU economic growth. Activity in European steel consuming sectors has remained sluggish, EUROFER says, though the automotive sector is experiencing growth.

EUROFER Director General Axel Eggert says, “Our downstream clients are generally seeing muted business conditions. They see little impact from apparently brighter macroeconomic conditions, and headwinds and uncertainties persist.”

Overall, total activity in EU steel consuming sectors is expected to rise by 2% in 2015 and by 2.7% in 2016. During the first quarter of 2015, apparent EU steel consumption was only marginally up on the same period of 2014. According to EUROFER, it is third-country suppliers—rather than domestic producers—that have benefited from the additional volumes in the EU steel market. The full EUROFER report is available at www.eurofer.eu.

 

EVENTS

Eco Expo Asia to spotlight recycling and waste sectors

Organizers of the 10th edition of Hong Kong’s Eco Expo Asia, set for 28-31 October 2015, say the event “is poised to become one of the most influential trading platforms for green technologies and solutions in Asia.” The show is organized by Messe Frankfurt (HK) Ltd. and the Hong Kong Trade Development Council and co-hosted by the Environment Bureau of the Government of Hong Kong.

Several exhibitors have been attracted to the event to provide solutions pertinent to Hong Kong’s 40% landfill diversion target for 2022, organizers say. The region is launching a program that includes source reduction, the introduction of producer responsibility schemes and strengthened waste collection and separation measures.

Hong Kong’s government is urging private companies to help construct waste treatment infrastructure, including an obsolete electronics treatment plant, a sludge treatment facility and organic waste treatment facilities.

“It was our first time participating in Eco Expo Asia last year and we were very delighted with the results,” says Ivan Leung, corporate communication manager at Baguio Green Group. “The show helped us to promote our corporate image and successfully heightened the industry’s interest in our company.”

 

PAPER

Norske Skog reports second quarter net loss, announces new business segments

Newsprint and magazine paper producer Norske Skog, based in Norway, has reported a net loss of 571 million Norwegian krone ($68.8 million) for the second quarter of 2015. The company also reported that gross operating earnings declined to 138 million krone from 192 million krone in the first quarter. The company cites weak publication paper demand in 2015 and industry focus on market share as factors.

Norske Skog also has announced its entry into two new growth areas alongside the publication paper business: the use of bioenergy at its facilities and tissue production at Bruck. The company says the current challenging market for publication paper is affected by cash-driven commercial policies and continued efforts to cut costs and improve productivity.

Sven Ombudstvedt, president and CEO of Norske Skog, says the company will continue to pursue an active capacity management policy to support cash generation and improved market balance.

In Europe the company reported lower sales volume of lightweight coated paper (LWC) resulting from the June 2015 discontinuation of its Walsum mill in Duisburg, Germany. The appreciation of the Norwegian krone also was cited for causing lower operating revenues in the quarter.

The company says the low sales volume, a less favorable sales mix and continued losses at Walsum through May contributed to reduced gross operating earnings.

Demand for newsprint and magazine paper in Europe decreased by 10% and 4%, respectively, in the five first months of 2015 compared with the same period last year, Norske Skog says. In the second quarter, the mills reduced capacity utilization to 80% (from 82% in Q1 2015) to avoid low margin sales and to support the company’s commercial policy. Total annual production capacity for the group is 2.8 million tonnes.

In Australasia, operating revenue declined slightly with Australian dollar depreciation and challenging export markets for newsprint to Asia. Demand for newsprint in Australia decreased by nearly 10% in the first five months of the year compared with the same period last year, while demand for magazine paper was relatively stable.

The group says it has a significant competitive advantage in Australia and New Zealand, being the sole domestic producer of newsprint and magazine paper. However, the export markets for newsprint to Asia pose a challenge with historically low prices.

Norske Skog says the market remains challenging and portfolio management policies will continue.

 

EVENTS

BDSV conference set for late November

BDSV, the German Steel Recycling Association, reports that its annual conference is scheduled for 25-26 November, 2015, at the Maritim Hotel Magdeburg in Germany.

This year’s event has been compressed from three days to two, BDSV says, to provide members the maximum amount of information via lectures and workshops while also offering networking opportunities. The association says the event also features a companion trade show area with nearly 50 specialised exhibitors in more than 1,200 square metres of trade hall space.

Featured workshops include fire prevention and fire detection in recycling facilities and a discussion of unfair business practices and corruption in the steel recycling industry. Additional information is available at www.bdsv.org.

METALS

ThyssenKrupp Aerospace forms supply agreement with ITP of Spain

ThyssenKrupp Aerospace UK, a division of the diversified industrial group ThyssenKrupp of Germany, has formed a supply agreement with the Spanish aero engine components manufacturer ITP.

For the next five years, the aerospace experts of ThyssenKrupp Group will supply stainless steel and nickel products to ITP locations in India and Mexico.

ITP is a global operator and manufacturer of aircraft engine components for the civil aviation sector.

“Both parties will benefit from the cooperation. Through our role as a global materials and services provider, ITP will in the future be able to fully concentrate on its own core business and continue along the growth path already taken,” comments Bob Baggaley, divisional director of ThyssenKrupp Aerospace UK.

The new long-term agreement was signed at this year’s Paris Air show. “We’re delighted at the new cooperation agreement and convinced that our global presence, our inventory range and processing capabilities as well as our expertise as supply chain specialist will assist ITP in further expanding its business.”

Miguel Angel Lizana, purchasing and supply chain director for ITP, says, “ITP is likewise convinced that the agreement has plenty of advantages to offer.”

 

METALS

Crude steel production declines in June

World crude steel production for the 65 countries reporting to the World Steel Association (Worldsteel), Brussels, was 136 million tonnes in June 2015, a 2.4% decrease compared with June 2014.

According to Worldsteel, world crude steel production in the first six months of 2015 was 813 million tonnes, a decrease of 2% compared with the same period in 2014. The Middle East showed an increase of 2.9%, whereas North America and C.I.S. (Commonwealth of Independent States) each reported a decline of 6.9% in the first half of 2015. Crude steel production in Asia declined by 1.5%, while it increased by 0.5% in the EU 28. South American production remained the same in the first six months of 2015 compared with the same period of 2014, Worldsteel says.

In Asia, China’s crude steel production for June 2015 was 69 million tonnes, a 0.8% decrease compared with June 2014. Japan produced 8.6 million tonnes of crude steel in June 2015, a decrease of 6.2% compared with June 2014. India’s production was 7.4 million tonnes, up by 0.8% relative to June 2014. South Korea produced 5.9 million tonnes of crude steel, a decline of 3.6% compared with June 2014, Worldsteel reports.

Turkey’s crude steel production for June 2015 was 2.8 million tonnes, a decrease of 4.5% relative to June 2014.

In June 2015, Russia produced 5.6 million tonnes of crude steel, a decline of 7.5% compared with June 2014. Ukraine produced 2 million tonnes of crude steel, a decrease of 21.8% compared with June 2014, Worldsteel reports.

The U.S. produced 6.7 million tonnes of crude steel in June 2015, down by 8.5% compared with June 2014.

According to Worldsteel, the crude steel capacity utilisation ratio for the 65 countries in June 2015 was 72.2%. This is a decrease of 3.5 percentage points compared with June 2014, but is 0.1 percentage points higher than the level reported in May 2015.

TEXTILES

Aquafil partners with Speedo USA on a closed-loop manufacturing system

Trento, Italy-based carpetmaker and nylon manufacturer Aquafil has partnered with Speedo USA on a takeback program that will allow Speedo USA’s postmanufacturing swimwear scrap to be recycled into Aquafil’s 100% regenerated Econyl nylon for new swimsuits, the companies say.

Speedo’s new PowerFlex Eco swimwear fabric is made from Econyl.

“Our partnership with Speedo USA shows their commitment to the environment with the takeback program but also their ingenuity in creating products from materials that can be recycled an infinite number of times,” says Giulio Bonazzi, chairman and CEO of Aquafil. “They are really helping us close the loop and create a more sustainable manufacturing process.”

Bonazzi says Aquafil is challenging apparel manufacturers to restructure their supply chains to divert waste from landfill.

In the swimwear industry, postproduction fabric scrap has not been suitable for traditional recycling because of its complex technical composition. However, Aquafil says it has developed technology that can turn swimwear fabric and other blended scrap materials into new raw nylon. The Econyl Regeneration System uses manufacturing scrap and nylon materials that have reached the end of their product lives—such as abandoned fishing nets and old carpets—and re-engineers them into Econyl Nylon 6 for the production of new carpets, sportswear and swimwear.

Through what the companies say is its first-ever takeback program, the Econyl regeneration process will separate usable nylon from Speedo’s blended postproduction scrap fabric. The used nylon will then be recycled into raw nylon fiber that can be made into new PowerFlex Eco swimwear.

Aquafil was profiled in the May/June 2012 issue of Recycling Today Global Edition.

PAPER

Tissue reuse operation shut down in China

Some forms of reuse and recycling can give the sector a bad reputation, as a petty crime ring in Jiangsu Province, China, has recently demonstrated.

According to a report in the Hong Kong Free Press, a police raid in Jiangsu Province uncovered an operation where collected used napkins were being bleached, repackaged and sold as counterfeit branded products.

Materials, including used napkins, paper and tissues, “were seen scattered all over the floor in a courtyard” at the raided site, according to the media report.

The perpetrators allegedly chose a popular brand name in which to repackage the materials. Hauling, sorting, bleaching and repackaging operations were reportedly conducted at night, according to police. Police also say the collected paper was bleached but was not disinfected before being cut and repackaged.

 

PLASTICS

WRAP publishes data on the use of thin-gauge carrier bags

The U.K.-based Waste & Resources Action Programme (WRAP) has published data indicating that the use of thin-gauge single-use carrier bags by supermarkets in the United Kingdom increased by 2.3% in 2014 to 8.5 billion bags compared with the previous year’s figures of 8.3 billion bags. The figures cover the 2014 calendar year for the U.K. from seven major grocery retailers.

The organisation also says this figure represents a decrease of 30% from 2006, when annual reporting began.

According to the report, the average supermarket customer used 11 single-use bags per month in 2014 compared with 10.8 bags per month in 2013 and 16.7 bags in 2006.

WRAP also reports that in 2014, the total volume of carrier bags, including reusable bags, weighed 68,600 tonnes, reflecting a 1.8% increase in weight from the prior year but a 37.5% decrease in weight from 2006.

Additionally, WRAP says there has been a 50% reduction in the amount of virgin polymer used in carrier bags between 2006 and 2014. The reduction of 4.5% in virgin polymer used in the bags from 2013 to 2014 indicates an increase in recycling content, WRAP reports.

Commenting on the news that major retailers in Scotland reported a reduction in carrier bag use of 147 million for the year, World Wide Fund for Nature of Scotland Director Lang Banks observes, “It’s fantastic to learn that carrier bag usage in Scotland has dropped so spectacularly since the 5-pence charge was introduced.” The country implemented the charge in October of 2014.

According to WRAP, mandatory single-use carrier bag charges are being or have been introduced in all four nations in the U.K. The first charge was introduced in Wales in October 2011, followed by Northern Ireland in April 2013 and Scotland in October 2014. England will begin imposing a carrier charge in October 2015.

METALS

Container theft ring busted in China

A television station based in south China’s Guangdong Province has reported that seven people who were part of a theft ring that broke into sealed containers full of scrap metal have been arrested near Guangzhou, China.

A July 23, 2015, televised news report on GDTV shows footage of stacked 40-foot containers taken to a location in Foshan, China, a prefecture west of Guangzhou that is home to many scrap yards and secondary metals production plants.

Additional footage includes interviews with police and with a regional scrap buyer who had been a victim of the ring. They describe an operation where red metal (copper and brass) scrap was hand-picked and removed from loads of shredded mixed metal scrap, such as zorba. One of the people interviewed explains how dirt was shoveled into containers after the copper scrap was taken.

The report also shows a collection of dozens of replacement container seals that likely would have been used to replace seals broken when containers were entered into illegally.

The culling of copper-bearing scrap from mixed loads placed into containers would prove profitable for the thieves but would then result in widely varying copper percentages for the recipients of the containers compared with the shippers. The broken criminal ring and others like it have likely contributed to claims and ill will between scrap exporters around the world and the importers in China who buy their materials.

 

PAPER

Spain’s paper industry on the rise, ASPAPEL says

The Spanish Association of Pulp and Paper Manufacturers (ASPAPEL) reports that Spain’s paper industry has experienced renewed growth in the second quarter of 2015 (4.6% in April and 5.7% in May) after recovering in 2014, when the industry posted a 2.8% increase in paper consumption after several years of declines.

According to ASPAPEL, the 2014 recovery followed a period of annual declines in paper consumption after reaching a record high of 7.9 million tonnes in 2006.

Increased consumption was reported for all types of paper in 2014, except hygienic and sanitary types, which fell by 2.6%. In the packaging paper category, cartonboard increased in 2014 by 2.9% and corrugated papers by 3.3% The use of other packaging had the highest growth of 5.7%.

ASPAPEL also reports that the paper industry has opened a new investment cycle, growing by 23% in 2014. This compares with European Union paper industry investments that grew by 2.2% in 2014. According to ASPAPEL, 2014 investments totaled €183 million and were focused on increasing production capacity, cost reduction and technical innovation.

The growth of exports, along with reduced imports in recent years, also have helped the Spanish paper industry, ASPAPEL says. During the “crisis” period from 2007 to 2013, Spanish paper production fell only half a million tonnes thanks to the growth of exports and reduced imports. The association says Spain’s paper industry sells half of its production to foreign markets. The report is available at www.aspapel.es/en/sustainability/report.

 

PAPER

Stora Enso to divest Barcelona, Spain, board mill

Stora Enso of Finland has reported that it plans to divest its Barcelona, Spain, mill, which produces recycled-fibre-based consumer board, to the private equity fund Quantum, based in Munich.

The company says the transaction is in line with its strategy to focus its consumer board products on virgin-fibre products.

The €10 million transaction, subject to closing day adjustments and regulatory approval, is expected to be completed in the fourth quarter of 2015.

“Stora Enso is focusing its consumer board offering on high quality virgin-fibre products. The Barcelona mill is the only recycled-fibre based mill in our consumer board division. Despite positive results development in recent months, the Barcelona mill requires further development effort and investment if it is to remain on a profitable path. I believe that the mill can operate more efficiently under the new ownership,” says Jari Latvanen, head of the company’s consumer board division.

Based on the annual figures for 2014, the divestment is expected to reduce Stora Enso’s annual sales by €117 million and simultaneously decrease Stora Enso’s annual board production capacity by approximately 195,000 tonnes.

The company says the transaction does not have a material impact on Stora Enso’s operational earnings before income tax and cash flow going forward and may improve margins slightly.

Stora Enso’s Barcelona mill employs approximately 220 people. The provider of packaging, wood and paper materials had global sales of €10.2 billion in 2014.