City officials in Piedmont, Calif., are in the process of drafting a construction and demolition recycling ordinance to help boost its recycling rates, according to a report in the Contra Costa Times (Walnut Creek, Calif.).

Officials want to tap into the C&D material stream to help the Alameda County Waste Management Authority meet its goal of diverting 75 percent of its material by 2010, according to the report.

State mandates require California cities to divert a minimum of 50 percent or face heavy fines.

Piedmont currently diverts 64 percent, according to the report.

City planner Kate Black tells the Contra Costa Times that C&D material makes up approximately 21 percent of the debris in the county landfills.

Shipments of Wise Metals Group's aluminum beverage can stock, other rolled aluminum products and scrap in the fourth quarter of 2004 totaled 166 million pounds, compared to 146.3 million for the same period in 2003, company officials have announced.

For all of 2004, shipments totaled 736.1 million pounds, compared to 605.2 million pounds for 2003, an increase of 22 percent. Net loss for the fourth quarter of 2004 was $25.2 million, which includes a $26.2 million expense for LIFO, offset by a $1.6 million favorable impact for SFAS 133 (accounting for Derivative Instruments and Hedging Activities). This compares to net income of $1.8 million in the fourth quarter of 2003, which includes a $6.2 million expense for LIFO, offset by a $4.5 million favorable impact for SFAS 133.

For the year, Wise Metals Group reported a net loss of $41.5 million including expenses totaling $43.3 million of which $35.2 million is for LIFO, $7.5 million is a write-off for early extinguishment of debt, and $0.6 million is a mark-to-market loss under SFAS 133. These results compared to a reported profit of $7.6 million for 2003 which includes a $9.9 million expense for LIFO, $4.3 million of severance credits, and an $8.2 million mark-to-market gain under SFAS 133.

Adjusted EBITDA for the full year 2004 was $33.3 million compared to $30.4 million for 2003, an increase of 10 percent. After adjusting for LIFO and SFAS 133, net loss for the fourth quarter of 2004 was $600,000, compared to a profit of $3.5 million in the fourth quarter of 2003, adjusting for similar items. The difference of approximately $4.1 million includes increased freight costs of approximately $2.3 million, increased maintenance and indirect material costs of $1.9 million, increased legal, accounting and administrative costs of $1.0 million, and increased interest expense of $1.9 million, offset by the effects of improved productivity and volume increases.

After the above items, the loss of $600,000 in the fourth quarter reflects a 68-percent improvement vs. the third quarter 2004 results of a loss of $1.9 million, similarly adjusted. This improvement was a result of continually improving productivity rates, reduced by higher Q4 energy costs of approximately $2.0 million. Earnings before interest and fees, taxes, depreciation and amortization (EBITDA) adjusted for the effects of early extinguishment of debt, last in, first out (LIFO), SFAS 133 and severance credits for (adjusted EBITDA) for the fourth quarter of 2004 was $8.2 million compared to $10.1 million for the fourth quarter of 2003.

Compared to the third quarter of 2004, adjusted EBITDA for the fourth quarter of 2004 of $8.2 million represented an increase of 19 percent from $6.9 million. Conversion margin, which is defined as conversion revenue (sales less metal costs and the effect of LIFO) less conversion cost (cost of sales less metal costs) decreased from $9.7 million in the fourth quarter of 2003 to $8.1 million for the same period in 2004.

Increased costs for transportation, material and supplies and continued high energy costs have offset gains achieved by productivity increases.

"Obviously our productivity increases cannot continue to offset the rapidly rising costs outside of our control which is why we had our previously announced price increase," Wise Metals Group Executive Vice President and Chief Financial Officer Danny Mendelson says. "This price increase, including an annual price increase equal to a percentage increase of the PPI (Producer Price Index), is set to take place April 1. Accordingly, first quarter 2005 results will continue to be affected by these rising input costs, with margin improvement from our price increases expected in the second quarter of 2005," he says.

Fourth-quarter average packed pounds per man-hour, used to measure production labor efficiency, was approximately 13 percent higher than the fourth quarter of 2003 and 27 percent higher than the overall average for 2003.

"Our 13-percent increase in packed pounds per man-hour is a result of our continued process improvements that have increased our standard equipment hour performance by 7 percent," Wise Metals Group President and Chief Operating Officer Randall Powers says. "We are excited to see our improvements continue into the first quarter of 2005 where we are also seeing improved results in our product recovery and delivery performance. This improved productivity will be critical to expanding our product mix as we enter into new markets," Powers says.

"As we head into 2005, I am enthusiastic about both our prospects in the can industry and the growth potential in the building and construction (B&C) and common alloy distributor markets," Wise Metals Group Chairman and Chief Executive Officer David D'Addario says. "The interest in these products has been very strong given the recent and continuing trends in both residential and commercial construction." D'Addario adds, "Through our developing manufacturing practices and resulting efficiencies, we have generated additional capacity to now expand our presence in these markets." 

Until recently, Wise Alloys, the largest operating subsidiary of Wise Metals Group LLC, has relied upon a joint marketing agreement with another common alloy sheet maker in the industry to exclusively market its products such as trailer roof, wide boat sheet and Star-bright(TM). "This marketing agreement terminates effective April 1," Wise Alloys Vice President of Sales and Marketing Don Farrington says. "We are currently in the process of building a depot stock of common alloy sheet products to service this very strong market.

Adjusted EBITDA for Wise Recycling increased approximately 62 percent in the fourth quarter versus the fourth quarter of 2003. For the full year, adjusted EBITDA also increased by approximately 49 percent to $3.6 million. The company's network of recycling centers generated a 47-percent increase in quarterly sales from the prior year, reflecting both an increase in market pricing and an 18-percent increase in volumes handled through the system. "We are extremely pleased with our performance this year," said Wise Recycling Chief Financial Officer Jim Tierney. "We have managed our system of centers and our administrative side to take advantage of favorable market conditions without adding significantly to costs as volumes increase."

Wise Recycling continues to diversify from its roots as a used beverage container (UBC) collection network, Wise Recycling Vice President Gary Curtis says. "UBCs continue to be our largest single volume contributor, but we are seeking to become a one-stop shop for small and large recyclable scrap collectors," Curtis says. "UBC volume represented roughly 30 percent of the volume through the Wise Recycling system in 2004, but volume growth over the prior year in that market was only 4 percent compared to more than 26 percent for other scrap types."

Wise Metals Group's newest subsidiary Listerhill Total Maintenance Center continues to grow its customer base, D'Addario says. LTMC provides maintenance, repairs and fabrication to manufacturing and industrial plants worldwide ranging from small on-site repairs to complete turn-key maintenance. "Listerhill Total Maintenance Center was named recently as one of two approved contractors in a 5-year project for up to $50 million to supply contracted equipment repair and maintenance services work for local Tennessee Valley Authority (TVA)," LTMC President and Chief Executive Officer Horace Crowden says.

Itec Environmental Group Inc., Oakdale, Calif., has announced that it has entered into a three-year agreement with H. Muehlstein & Co. Inc., pursuant to which H. Muehlstein will act as Itec's exclusive agent for the annual purchase and sale of up to 60 million pounds of Itec's PET flake and post-consumer HDPE natural flake and pellets in the United States and Canada. The current projected plant capacity for Itec's PET and HDPE flake is approximately 44 million pounds.

"I am very pleased that we were able to enter into this agreement with H. Muehlstein & Co.," Gary De Laurentiis, president of Itec, says. "I've worked with H. Muehlstein & Co. for over 12 years and know the value they bring to their clients and the excellent and impeccable reputation they have within the industry. H. Muehlstein & Co. will be our sales force representing Itec's products within the U.S. and Canada, allowing Itec to focus on the expansion of its business," he adds.

The Muehlstein group of companies, founded in 1911, has annual sales in excess of $1 billion per year and is the world's largest polymer distributor, marketing 2.7 billion pounds of plastic and rubber products to more than 6,400 manufacturers in 76 countries. Muehlstein represents world-class polymer producers such as Dow, ExxonMobil and BP.

"Muehlstein, as a global leader in the marketing and sales of recycled plastic materials, is very excited about this opportunity to partner with Itec in this new venture. The Itec recycling process is indeed unique and will offer Muehlstein a quality product to bring to a market that has an ever growing need for these post consumer polymers," John Lavery, business manager of recycled products for H. Muehlstein & Co., says.

In a research partnership with Honeywell FM&T, Itec has developed and commercialized a new system for recycling plastic containers. Itech says its Eco2 System costs 30 percent less to operate, uses no water, removes all contaminates and odors from the finished flake and produces no toxic by-products.

A U.S. District Judge has thrown out a lawsuit challenging a contract to ship vessels from the James River Reserve fleet to Able UK, a ship dismantling firm in the United Kingdom.

The company had received a number of the vessels before a number of environmental groups filed the suit to ban the shipment of the vessels across the Atlantic to Able UK. The Sierra Club and the Basel Action Network had filed the suit. The judge in the case had dismissed the suit

The ruling dismissed opposition from environmentalists to plans by the US Maritime Administration to send obsolete vessels overseas for dismantling.

According to published reports the ruling will allow nine vessels in the fleet to depart for the UK by this summer.

MARAD is under a legislative deadline to complete the dispersion of the James River fleet by next September. While the agency has been shipping part of the fleet to a number of locations in the United States, as well as several to England, many critics say it is unlikely that the agency will be able to complete the project by next September. The Government Accountability Office expresses concern that the deadline will not be met.

According to the Viginian-Pilot, the program “has relied almost entirely on an inappropriate procurement method which has lacked transparency.”