Scholz Group Anticipates Active 2012

Germany-based scrap recycling firm Scholz Group AG has issued a news release forecasting solid demand for scrap metals in 2012.

“Despite the economic slowdown in the second half of 2011, we have been expanding our market position successfully,” says Oliver Scholz, director of Scholz AG. “Prices for steel and industrial metals are in volatile markets [but] on a solid level. We expect strong demand in the beginning of the year and a generally favorable market environment.”

The company’s chief financial officer says Scholz AG also may make changes to its corporate structure in 2012. “We will continue our optimization strategy and our financial flexibility [upgrades],” says Parag-Johannes Bhatt, CFO of Scholz AG. “Provided capital markets are stable, we are considering issuing a corporate bond in 2012, thus diversifying our financial structure,” he adds.

Scholz offers an opinion that urban mining “will be a hot topic” in 2012. “Urban mining means the systematic recovery of raw materials from residential and Industrial waste,” says Scholz, citing environmental and sustainability factors. “A metric ton of steel that is produced from scrap saves about 1.5 metric tons of iron ore; 0.65 tons metric tons of coal; and 0.3 metric tons of limestone. Plus, it avoids approximately one metric ton of CO2 emissions.”

Looking back on recent accomplishments, the company points to an auto recycling center it established near Leipzig, Germany. “We have always promoted the development of new technologies that will help to open up new and profitable markets,” says Oliver Scholz. “The location near Leipzig is a unique center of excellence for the recycling of old cars and other metal-containing appliances. The plant is equipped with a recycling rate of over 94 percent of one of Europe’s most efficient locations for the recovery of materials from end-of-life vehicles (ELVs).”

The news release adds, “For 2012, the company plans to further invest in future markets, such as the further processing of plastic [scrap] fractions.”

The Scholz Group employs more than 7,500 employees at more than 500 de-centralized recycling facilities worldwide. In 2011, the company processed or traded more than 10 million tons of recyclable commodities.