Scrap Industry News

ARA Critical of GM’s Decision to Pull out of ELVS

Just as the Car Allowance Rebate System (CARS), also known as "Cash for Clunkers," has brought in some 700,000 trade-ins heading to automobiles recyclers across the United States, General Motors is opting out of a mercury switch collection program for salvaged vehicles.

The Automotive Recyclers Association (ARA), Manassas, Va., says GM is the largest contributor to the mercury switch program, known as the End of Life Vehicle Solutions Corp. program (ELVS). It also accuses GM, 60 percent of which is owned by the federal government, of turning its back on an environmental program championed by the U.S. Environmental Protection Agency.

In a news release, the auto dismantlers’ trade group says GM "is choosing to ignore [its] environmental responsibilities by opting out of a program which is responsible for collecting over 2.5 million mercury switches since it was created in 2005."

The ARA continues, "The CARS program mandates that convenience light mercury switches and other hazardous substances be removed before the vehicles are shredded. If these are not removed, toxic waste is released into the environment with severe detriment to vegetation and sea life and, ultimately, humans."

The ARA says it comes as a surprise and disappointment to the organization that GM is opting out of the ELVS program.

ELVS was formed by the automakers, according to the ARA, "to help them address their mercury switch responsibility. Without the support of the program, automotive recyclers would find it difficult to participate in this voluntary system of mercury switch disposal."

ARA Executive Vice President Michael Wilson says, "We, as others, are greatly concerned that a company that is both 60 percent owned by the federal government, and is a significant recipient of the benefits from the now $3 billion CARS program, is being allowed to turn its back on a commitment to a very important environmental program set up by the government’s own U.S. Environmental Protection Agency."

He adds, "This further highlights the need to find a stable funding source for the National Vehicle Mercury Switch Recovery Program (NVMSRP), if the mercury from these convenient light switches is to be kept out of the environment."

General Motor’s decision, according to the ARA, is based on a claim that as a "new" company it no longer makes vehicles with mercury switches and, therefore, is not responsible for the older vehicles made by the prior General Motors. The old company, still under bankruptcy court supervision, says it is reviewing its previous agreements.

"Auto recyclers did not make the vehicles with mercury switches," Wilson says, "but our industry has stepped up in record numbers to participate in this voluntary program to help protect the environment. The nominal fee per mercury switch that automotive recyclers receive hardly reimburses them for their time and effort spent removing them." Wilson adds, "The ARA is troubled by the ‘new’ GM’s decision in this matter. It’s shameful to hide behind [semantics] to avoid responsibility."

The ELVS program is scheduled to run until 2017 and has recovered nearly 5,600 pounds of mercury.

Cozzi Cements Alliance with O’Brien Recycling

Cozzi Partners LLC, Chicago, and O’Brien Recycling Corp., Franklin Park, Ill., and its affiliates have reached an agreement to merge to form Cozzi/O’Brien Recycling LLC. The new company will continue to operate out of two O’Brien locations in Franklin Park, Ill., and one O’Brien location in Melrose Park, Ill. Cozzi/O’Brien Recycling LLC bills itself as a full-service ferrous and nonferrous scrap recycling company.

Frank J. Cozzi will serve as the new company’s chairman and CEO. He has more than 40 years of experience in the industry.

George O’Brien III will serve as president and chief operating officer of the new company, while George O’Brien Jr. will continue in his role as executive vice president.

Additionally, Frank Cozzi’s two sons, Frank Cozzi Jr. and Anthony Cozzi, will be involved in the company’s day-to-day operations.

"After almost three years of joint ventures and consulting for the O’Briens, a more formal partnership just seems like a natural next step," Frank J. Cozzi says of the merger. "When we were presented with the opportunity to join the O’Briens, we jumped at it. The new company will provide a strong foundation from which we can build on the huge potential that exists."

George O’Brien adds, "The experience, knowledge and expertise of the Cozzi family are second to none in the scrap metal industry. On behalf of the entire O’Brien Recycling Corp. team, it will be our pleasure to work with them as partners. Personally, I could not be more excited about the future of Cozzi/O’Brien Recycling LLC."

Albert, Frank and Gregory Cozzi own Cozzi Partners, which owns Glendale Iron & Metal in Glendale, Ariz., and Cozzi Consulting Group LLC in Burr Ridge, Ill.