Hugo Neu Considers Recycling Plant in NYC

Hugo Neu Schnitzer, which earlier this month increased its bid for New York City’s metals, plastics and glass by $19 a ton, said that if the revised bid is accepted, the company will build a plant in the Bronx.

The improvement in the bid lowers the price the city would pay Hugo Neu Schnitzer from $70 per ton to $51 per ton.

Late last month HNSE was awarded a separate bid that would bring back New York City’s plastic recycling program. Under that bid, HNSE would pay the city $5.10 per ton for metal and plastic.  Despite a considerable delay in awarding that contract, HNSE stands by this bid and will be working with city officials in the coming weeks to set up an appropriate timetable for plastic recycling. But the company emphasizes that—unlike the bid to bring back the city’s entire recycling program—this contract offers limited opportunity for investment and the creation of infrastructure that would help ensure recycling’s viability in the long term.

In improving its second bid for metal, plastic and glass, company officials said they were looking to allow New York City to reinstate its entire recycling program, even given the city’s current budget constraints. The city currently pays an estimated $105 per ton for the disposal of plastic and glass in the solid waste stream.

“In reaction to the current economic climate, we took a very hard look at our numbers and revised our bid for the recycling of metal, plastic and glass so that the city could restore recycling completely,” said Robert Kelman, general manager of HSNE. “With this revised bid, we are confident that the city can bring back recycling at a cost that is considerably less than the cost of exporting the recyclable materials as garbage.”

“Moreover,” Kelman added, “with export costs expected to rise significantly in the coming months, over the course of the five-year contract, we are sure that the savings to the city will be even greater.”

In November, 2002, HNSE made two bids to the city: the first an offer to pay the $5.10 per ton for the recycling of metal and plastic; and a second bid for the city to pay $70 per ton for the recycling of all of the city’s metal, plastic and glass.  HNSE currently recycles all of the city’s metal—an average of 6,500 tons per month.

“Over the course of fifteen or twenty years, the savings to the city would grow substantially,” said Kelman, “with a long-term commitment, a private company like Hugo Neu Schnitzer East (HNSE) can develop markets for recycled materials and make the types of investment in technology and infrastructure that would provide enormous returns for the city—not just in cost savings, but in environmental benefits and the creation of jobs and opportunity for New York City residents.”