Hugo Neu Schnitzer Changes NYC Bid

In an effort to revive New York City’s recycling program and obtain additional material, Hugo Neu Schnitzer East (HNSE) has offered to accept nearly $20 per ton less for metal, plastic and glass collected by the city’s Sanitation Commission.

The city has stopped collecting plastic and glass as it copes with a budget crisis. Recently, Sanitation Commissioner John Doherty has stated that even with the improved bid from Hugo Neu Schnitzer East, the city will need state dollars to return to collecting plastic and glass containers.

Officers of HNSE are hopeful that their bid will be accepted and that recycling can remain a habit for New Yorkers. Their new bid asks the city for a $51 per ton payment for metal, plastic and glass collected by the recycling program, down from an earlier bid of $70 per ton.

“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,” says Robert Kelman, general manager of HNSE. “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 [out of state] as garbage.”

According to HNSE, the city currently pays an estimated $110 per ton for the transportation and disposal of plastic and glass in the solid waste stream.

“Recycling can work for New York City, from both an environmental and an economic standpoint,” says John Neu, chairman of Hugo Neu Corp., one of the two joint venture owners of HNSE. “We firmly believe this, and with this revised bid, we think we’ve proven it.”

HNSE currently recycles metal collected by the city, which amounts to an average of 6,500 tons per month. The company’s original bid offered to pay $5.10 per ton for metals and plastics, leaving out glass. The next two bids have resulted in the city paying a per-ton fee in order for HNSE to accept the glass.

Kelman says what is good in the long-term for the city is clear: Establishing a recycling infrastructure makes sense compared to relying on out-of-state landfills.

“Over the course of 15-to-20 years, the savings to the city would grow substantially,” says Kelman. “With a long-term commitment, a private company like 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.”