Newsworthy

> METALS

LME Agrees to Sale to Hong Kong Exchange
The board of London Metal Exchange Holdings Ltd., the parent company of the London Metal Exchange Ltd. (LME), says it has entered into a framework agreement to accept a cash offer for its sale to Hong Kong-based HK Investment (UK) Ltd. (HKEx Investment) and Hong Kong Exchanges and Clearing Ltd. (HKEx).

According to an LME news release, the offer is “for the entire issued and outstanding ordinary share capital of LME Holdings by HKEx Investment.” As of June 15, the expected value of the transaction was £1.39 million ($2.16 million).

The LME’s board of directors has recommended “that the holders of ordinary shares of LME Holdings vote in favor of the transaction at the ordinary shareholder meetings expected to be convened before the end of July 2012.”

Under the terms of the offer, HKEx Investment will acquire the entire issued and outstanding ordinary share capital of LME Holdings “and each ordinary shareholder will receive £107.60 (US$167.66) per LME ordinary share in cash.”

“This proposed combination will secure the future of the LME for its next 135 years,” says Martin Abbott, CEO of LME Holdings and the LME. “The LME’s global benchmarks, plus HKEx’ pre-eminent market position in Asia, its information technology and trading resources and clearing expertise will cement the LME’s position as the world’s foremost base metals trading venue.”

“The acquisition of LME Holdings represents a unique opportunity for us to acquire in one stroke a position of global leadership in the commodities market,” says Charles Li, CEO of HKEx. “This is consistent with our strategy to expand beyond equities and equity derivatives and offers significant opportunities for revenue growth. HKEx brings a unique ability to help the LME grow its business in Asia and, particularly, China, and we will capitalize on this to deliver value for all our stakeholders. We are looking forward to working with the team at the LME to achieve these objectives.”

According to the LME, the transaction:

• Brings together the LME, a nonferrous base metals exchange trading venue, with an operator of exchanges and clearinghouses in Asia;
• Preserves the LME’s business model, including the operation of the “Ring” (open outcry trading), daily prompt date contract structure, existing membership structure and capacity for warehousing and physical delivery, which contribute to the LME’s position as a leading price formation venue for nonferrous base metals;
• Provides a platform for significant long-term growth through the expansion of the LME’s business and operations in Asia and the Chinese market by leveraging HKEx’ resources, infrastructure and network in the region;
• Supports the development of LME’s clearinghouse, LME Clear, which will enable the LME to launch new products and services more efficiently by drawing on HKEx’ track record and experience in operating three clearinghouses;
• Enables the LME to leverage HKEx’ considerable IT expertise, infrastructure and resources to enhance its current IT platform;
• Accelerates HKEx’ strategy to develop its own commodity offering and to diversify its revenue sources.

In its mid-June news release, the LME says “it is expected that a circular containing and setting out, among other things, the full terms and conditions of the scheme and containing the notices convening the ordinary shareholder meetings will be posted to ordinary shareholders within approximately 15 business days of this announcement, ahead of the ordinary shareholder meetings to approve the transaction, which are expected to take place before the end of July 2012.”

A Bloomberg news report indicates that Intercontinental Exchange Inc. (ICE), a futures market operator based in New York, and HKEx, was the other contender in a bidding process that was announced by the LME in September 2011.

 

> METALS

Novelis Opens Global Research & Technology Center in Atlanta
Novelis, an Atlanta-based producer of rolled aluminum and a recycler of aluminum used beverage cans (UBCs), has opened its new Global Research & Technology Center outside of Atlanta. The 160,000-square-foot facility will serve as the global hub for the company’s research and development activities.

“Innovation is the foundation of our strategy and a critical driver of our growth,” says Jack Clark, Novelis chief technical officer. “It’s also one of the key components of achieving our commitment to having 80 percent recycled content across our products by the year 2020. This new center will help drive increased collaboration with our customers, enabling us to work side-by-side in developing innovative, sustainable aluminum products.”

The center will focus on solutions for the company’s can, automotive and specialty customers. The facility will include laboratories, a pilot beverage can production line and meeting space. Novelis’ plans include a small scale aluminum rolling mill and heat treatment capabilities for finishing automotive aluminum sheet.

“The new Global Research & Technology Center will bring together some of world’s leading metallurgists, materials scientists, engineers and technologists all working for the benefit of Novelis’ customers across the globe,” says Stefan Erdmann, Novelis vice president of global R&D.

 

> PLASTICS

Coca-Cola Mexico, Bottlers Look to Expand PET Recycling
Coca-Cola Mexico, along with bottlers Arca Continental, Embotelladora Bepensa, Yoli Acapulco, Corporacion del Fuerte, Corporacion Rica, Embotelladora del Nayar and Embotelladora de Colima, have announced a plan to invest $34 million to double the capacity of PetStar SA de CV’s food-grade PET recycling facility in Toluca, near Mexico City. PetStar is a division of Avangard Innovative, a Houston-based plastics recycler.

When complete, the expanded facility is expected to recycle 120 million pounds of PET (polyethylene terephthalate) per year, making it the largest food-grade PET recycling facility in Latin America, according to Coca-Cola Mexico.

PetStar’s initial PET recycling facility, opened during the second quarter of 2009, has a capacity of 64 million pounds per year.

The groundbreaking ceremony, held June 8, 2012, included representatives from Coca-Cola Mexico, bottlers involved in the project, the governor of the state of Mexico and a representative from Mexico’s Ministry of Environment and Natural Resources.

Miguel Angel Rabago Vite, chairman of PetStar, said at the groundbreaking, “In order to fulfill our goal to incorporate as much recycled material in packaging our drinks, we now take this step that PetStar double its recycling capacity to process an additional 60,000 tons of PET per year, equivalent to 200 million bottles, and turn them to cleanly and efficiently recycled PET food-grade resin to make new bottles. This expansion project represents an investment of $34 million and will create 500 direct jobs and 6,000 indirect jobs.”

 

> PAPER IP

Agrees to Sell Three Mills
International Paper (IP), headquartered in Memphis, has reached agreements to sell three containerboard mills in the United States to satisfy obligations in its February 2012 settlement agreement with the U.S. Department of Justice (DOJ). IP has agreed to divest the former Temple-Inland mills in Ontario, Calif., and New Johnsonville, Tenn., as well as its mill in Oxnard (Hueneme), Calif.

IP has entered into agreements for the sale of the New Johnsonville mill to Hood Cos. Inc. and the sale of its Ontario and Hueneme mills to New-Indy Containerboard LLC, a newly formed joint venture of The Kraft Group LLC and Schwarz Partners LP.

“We are pleased to have reached these agreements within the timeline established in our settlement with the DOJ,” says John Faraci, IP chairman and CEO. “The purchasers are experienced operators in the paper, forest products and packaging industries, and we look forward to working with them.”

In a joint statement, The Kraft Group and Schwarz Partners state, “We have been working together in the paper and packaging industry for decades, and we have never been more optimistic about the direction of the industry than we are currently.”

Of the New Johnsonville mill, the Hood Cos. says, “The mill represents a key strategic growth platform within Hood’s holdings. We view the New Johnsonville mill as an exceptional asset with an outstanding management team and employee group. We look forward to the long-term opportunities that this acquisition creates for the New Johnsonville employees and Hood Cos.”

 

> MUNICIPAL

Vermont Governor Signs Recycling Bill into Law
Vermont Gov. Peter Shumlin has signed into law House Bill (H.) 485, an Act Relating to Establishing Universal Recycling of Solid Waste.

“I am pleased to sign this bill today,” Shumlin says in a statement. “Moving toward universal recycling will advance Vermont into the next generation of solid waste management and keep more waste out of our landfills.”

According to the governor’s office, the new law creates phased-in mandatory recycling and composting. During the next several years, the law will require waste haulers to also collect leaves and yard and food waste and prohibits the disposal of recyclable and compostable materials in landfills.

“Vermonters are currently throwing away up to $7.6 million worth of waste that could be recycled or composted,” says Department of Environmental Conservation Commissioner David Mears. “H. 485 will help divert this material from the waste stream and away from our crowded landfills.”

The universal recycling bill creates phased-in composting requirements starting with the largest processors of produce and eventually applying them to any person who generates food waste. It requires that recycling containers be provided in equal number to trash cans in public buildings.

The text of the law is available at www.leg.state.vt.us/docs/2012/bills/Intro/H-485.pdf.

 

> MUNICIPAL

Rhode Island Launches Statewide Recycling Program
The Rhode Island Resource Recovery Corp. (RIRRC), based in Johnston, R.I., has launched Recycle Together RI, a new statewide recycling program that RIRRC says will make it easier for state residents to recycle. At the dedication, Rhode Island Gov. Lincoln Chafee, Lt. Gov. Elizabeth Roberts, RIRRC officials and local officials cut the ribbon on RIRRC’s new $16.9 million material recovery facility (MRF).

“This is an incredible example of the effort we can make as a state to become more environmentally responsible,” Chafee says. “Rhode Island is the first state in the nation to incorporate this recycling process statewide. We currently possess the most technologically advanced recycling system in the Northeast. I look forward to the positive effect the Recycle Together RI program will have on our residents, our communities and our state,” he adds.

RIRRC says the Recycle Together RI program incorporates two significant changes designed to boost recycling: Residents will be able to recycle all 2-gallon or smaller plastic containers and recyclables will be commingled.

Mike O’Connell, RIRRC executive director, says, “Recycle Together RI is the culmination of four years of innovation and hard work by our staff, our vendor and our elected officials. This new recycling program will make recycling easier for all of our state’s residents, resulting in a number of positive changes.”

The MRF took seven months to install while the RIRRC’s existing MRF continued to operate. O’Connell attributes the smooth transition to the RIRRC’s staff and to Van Dyk Recycling Solutions, Stamford, Conn., the supplier of the new MRF.

The new Bollegraaf recycling system allows RIRRC to process 50 tons per hour of recyclables.

 

> METALS

Mervis Industries to Open Indiana Scrap Yard
The recycling company Mervis Industries, based in Danville, Ill., has announced plans to build and operate a recycling facility on 25 acres in Montgomery County, Ind. The new plant also will be used as a transportation hub for the company.

“We looked at a number of properties in the area, and this was the best site to expand our business and serve existing industrial customers in Montgomery County,” says Michael Mervis, director of Mervis Industries. “This property has excellent highway access and meets our standards for a recycling facility.”

The new facility will operate under Mervis’ Advantage Recycling name. It will include a community drop-off operation as well as a site for the transfer of ferrous and nonferrous metals.

 

> PLASTICS

LA Bans Plastic Bags at Retail Establishments
The Los Angeles City Council has voted 13 to 1 in favor of phasing out plastic bags over the next 16 months at an estimated 7,500 stores in the city. As a result of the council’s decision, shoppers will need to bring reusable bags or purchase paper bags at a cost of 10 cents each.

The vote is the culmination of a Los Angeles Board of Public Works report from Sept. 16, 2011, that sought to restrict the use of plastic bags at retailers.

According to the city council, the regulation requires retailers to sell or provide for free reusable bags to customers. Also, upon adoption of the project’s related ordinance, the ban will take effect for large retailers (as specified in the board’s report), and will include a public education component. A six-month grace period is provided for small retailers, which must include a public education component and allow retailers to phase out product stock. The ban takes effect for small retailers upon completion of the grace period.

 

> METALS / ELECTRONICS

LS-Nikko Opens US Branch Office
LS-Nikko Copper Inc., a subsidiary of South Korea-based LS Group, has opened a scrap purchasing office in Irvine, Calif.

According to Ryan Cha, marketing manager at the new location, LS-Nikko seeks to purchase copper scrap, copper residue, electronic scrap and scrap lead batteries to supply the company’s smelter in Korea. Cha also says LS-Nikko Copper Inc. (USA) will be working in “collaboration with ERI Co. in electronic recycling,” referring to a 2009 agreement LS-Nikko made with Fresno, Calif.-based Electronic Recyclers International.

“This branch office is the next step for our recycling business,” Cha says. “We’re certainly continuing to cooperate with ERI to expand market share [and] at the same time we will vary the types of materials and increase the procurement volume of scrap materials for our Korean facilities.”

Cha will serve as the contact between the Irvine office and scrap dealers and wholesalers in the United States. He can be reached at chayos@lsnikko.com or at 949-251-7600.

> MUNICIPAL

Pratt Opens MRF in South Carolina
Pratt Industries USA Inc., a paper company based in Conyers, Ga., opened its newest material recovery facility (MRF) in Duncan, S.C., in June 2012.

The company has invested $3.5 million in the facility, which is expected to handle residential and commercial single-stream recyclables from a 100-mile radius.

“It’s a great day in South Carolina when another one of our existing businesses decides to increase its footprint in our state,” says South Carolina Gov. Nikki Haley in a news release. “We celebrate Pratt Industries’ investment in Duncan and the creation of 30 new jobs.”

In addition to curbside single-stream materials, the facility also processes recyclables from commercial accounts.

 

> ELECTRONICS

ECycle Solutions Signs Deal to Acquire Quebec Electronics Recycler
Electronics recycling firm eCycle Solutions, based in Toronto, has signed an agreement to acquire the assets of Centre de Recyclage Électronique de la Montérégie (CREM), a Quebec-based electronics recycling firm. Upon closing, CREM will operate collection and consolidation activities from its two Quebec facilities in Montreal and Quebec City. Processing will be performed at eCycle’s facility in Salaberry-de-Valleyfield, Quebec.

“We are very excited to add CREM’s strong market presence in Quebec,” says Jeff More, president and CEO of eCycle. “CREM’s collection infrastructure and customer base, combined with eCycle’s world-class Valleyfield facility, creates a leading Quebec-wide solution for electronics recycling.”

Jason Taite, president of CREM says, “With the emergence of the Quebec electronics stewardship program in the next few months, our combined capabilities will allow us to best service the needs of our customers.”

 

> METALS

Conversion Resources Adopts American I&M Name
Conversion Resources of Macedonia, Ohio, has officially changed its name to American Iron & Metal (AIM) Cleveland LLC. Conversion, founded in 1983, was purchased by Montreal-based AIM in 1999. The name change has been made to rebrand the location as part of the AIM group of companies, according to AIM.

AIM has more than 40 facilities throughout North America and concentrates on metal recycling, demolition, manufacturing and transport businesses. With annual sales in excess of $1.6 billion and 2,000 employees, AIM describes itself as one of the world’s largest privately held metals recycling firms.

AIM Cleveland offers scrap metal recycling programs for manufacturers and risk management for generators of nonferrous scrap.

 

> MUNICIPAL

RethinkWaste Wins SWANA Award
RethinkWaste has been chosen for the 2012 Recycling Systems Excellence Gold Award by the Solid Waste Association of North America (SWANA). The award will be presented to RethinkWaste at SWANA’s Wastecon annual convention Aug. 14, 2012, in Washington, D.C.

According to RethinkWaste, the award reflects its five-year, $46 million master plan to build a recycling and transfer facility at its Shoreway Environmental Center in San Carlos, Calif., to divert as much material as possible from the landfill.

“It is a real honor and a privilege to receive the top award in the country for our efforts to transform the outdated Shoreway Recycling and Disposal Facility into the Shoreway Environmental Center,” says Kevin McCarthy, executive director of RethinkWaste. “We have an outstanding facility that delivers cost savings to the ratepayers every day through our innovative facility design.”

The San Carlos facility includes a 70,200-square-foot material recovery facility (MRF) where recyclables in RethinkWaste’s service area are processed. The MRF houses processing equipment from Bulk Handling Systems Inc., Eugene, Ore., designed to handle single-stream recyclables. The plant replaces Shoreway’s previous 48,000-square-foot building. The new MRF became fully operational in May 2011 and has the capacity to handle more than 80,000 tons per year on one operating shift.

Master plan improvements include a 14,780-square-foot expansion of the existing 62,000-square-foot transfer station building to increase unloading room for public customers and to allow for a 30,000-ton-per-year increase in organic materials collected. There’s also a dedicated environmental education center, a new public recycling center for the free drop-off of materials and a buy-back center for redeeming bottles and cans.

> MUNICIPAL

Greenstar Opens Akron, Ohio, MRF
Akron, Ohio, Mayor Don Plusquellic, Summit County Executive Russ Pry and Houston-based Greenstar have announced the opening of Greenstar’s newest single-stream recycling facility in Akron that will serve customers in central and northeast Ohio.

Greenstar has invested $7 million in the recycling facility, which includes improvements to an existing 196,000-square-foot facility and new technology upgrades to help automate the sorting of materials. The facility will process 7,000 tons of recyclables per month, according to Greenstar, though its processing capacity can be expanded to 15,000 tons per month as the need arises.

Greenstar says it has created 43 new jobs at the facility and the number of jobs could increase to 75 as recycling volume increases.

“Greenstar is committed to increasing Akron’s recycling rates,” says Marcelo Figueira of Greenstar Recycling. “Increasing the recycling rates will help reduce the cost of disposal and preserve our environment. The single-stream facility also brings jobs to Akron and makes recycling more convenient.”

Plusquellic says, “Greenstar has returned an existing building to a manufacturing purpose and has made significant investments in equipment, building use and new green jobs. The single-stream recycling technique used by Greenstar contributes to the growth and sustainability of Akron and furthers the city’s Greenprint for Sustainability, launched in 2007.”

“Greenstar’s commitment to conserving resources, creating jobs and protecting the environment will allow citizens and local businesses to advance their recycling efforts and deepen their commitment to going green,” Pry adds.

 

> METALS

Upstate Shredding-Ben Weitsman to Build Wire Chopping Plant
Upstate Shredding-Ben Weitsman has announced plans to build a wire chopping facility in Owego, N.Y. The $6 million facility will feature a wire chopping plant installed by the Wendt Corp., Tonawanda, N.Y., and purchased from MTB Recycling of Trept, France. The company also will build a 100,000-square-foot warehouse for nonferrous metals.

“With this investment, we will be able to increase our profits and further process more valuable materials from the automobiles and other insulated wires we are currently selling to others,” says Adam Weitsman, owner of Upstate Shredding-Ben Weitsman.

By purchasing the MTB wire chopping line, Upstate Shredding-Ben Weitsman says it has positioned itself to refine lower-grade insulated wiring from the shredding process and all other grades of insulated wire. The plant will process copper, aluminum and lead-coated wire from Upstate Shredding and Ben Weitsman feeder yards. The company also will purchase insulated copper and aluminum, aluminum copper radiators and lead-coated wire on the open market from dealers throughout the Northeast and Canada. In addition, Upstate Shredding-Ben Weitsman will purchase insulated wire from other shredders.

“This will put North America back in play again,” says Tom Wendt, president of Wendt Corp. “This is an upgrade that allows for significantly increased domestic sale, not just for export. This is the only proven and premium solution for recovering wire from shredder residue.”

Wendt says the new line will have the highest volume capability offered in a wire chopping plant by MTB. The automated, four-stage process is capable of separating the various components of the cable to pure metal, the company says.

 

> CONFERENCES

Global Paper Industry Developments to be Discussed at Paper Recycling Conference Europe
The Recycling Today Media Group has announced that the Paper Recycling Conference Europe, organized in collaboration with Smithers Pira, will be held Nov. 6 - 7, 2012, in London. This must-attend event provides industry networking opportunities on a global scale along with expert analyses on the latest market trends. Hosted annually since 2005, Paper Recycling Conference Europe is attended by recovered paper merchants, brokers, consumers, mill representatives and equipment and service suppliers involved in the paper recycling industry.

Unlike other paper industry events, Paper Recycling Conference Europe is designed to bring the supply and consuming sides of the industry together to create an active dialogue and generate trading opportunities, according to the organizers.

This year, the two-day event takes place at the Park Plaza Victoria London hotel in Central London.

The show’s comprehensive program features sessions designed to help industry executives gain a market edge. Key sessions include:

• The 2012 Market Overview—This opening session offers an in-depth look at the European and global paper and board industries and the factors influencing these markets.
• The Search for Supply—Panelists discuss how traditional sources of recovered fiber are dwindling while others may provide new opportunities.
• Rules and Restrictions—This session focuses on laws and government agency rules that are having or are poised to have a significant impact on the recovered paper industry.
• A World of Questions—Updates from China, India and the Middle East and what this means for businesses.
• A Future in Plastics—New for 2012 and designed for fiber industry professionals diversifying into this area, this session examines market dynamics for the recycling of post-consumer and post-industrial plastics.

Additional information is available at www.PaperRecyclingEurope.com.

> PLASTICS

Wastren Advantage Acquires Plastics Recycler
Piketon, Ohio-based Wastren Advantage Inc. (WAI) has acquired Geo-Tech Polymers, a Westerville, Ohio-based plastics recycling firm that holds a patent said to increase the value and range of uses for plastic products from post-industrial and post-consumer plastics.

WAI provides waste management, environmental remediation and facilities operations services to private and government clients.

According to WAI, a highlight of the Geo-Tech process, initially developed under contract with the U.S. Department of Defense and Energy, is that it does not use chemicals that can degrade the recycled plastic, resulting in plastic that can be used in high-end applications.

 

> METALS

Cable Management to Open New Facility
Cable Management LLC, a company specializing in wire chopping, has opened a new facility in Meriden, Conn., the site of its existing plant.

Josh Trudeau, president of Cable Management, says the new facility was needed because the company was running out of space at its existing facility. The new building contains about 6,400 square feet of space. Cable Management says it expects to expand its new facility as the business grows, ultimately reaching 22,000 square feet.

In addition to providing wire chopping services, the company also is a manufacturer of wire chopping equipment.

The multi-million dollar expansion features a wire processing line capable of handling steel-coated BX cable and low-grade wires often exported by dealers and processors, according to Trudeau.

“Being a wire chopping equipment manufacturer really gives us an edge,” says Trudeau. “We are able to tailor the system to our needs instead of buying a system that may not quite cut it.”

Cable Management says it has carved a niche in the industry by offering low-cost, smaller wire chopping systems that are expandable.

“We wanted the equipment that we sell to grow with the business of our customers,” Trudeau says. “We don’t just want to build and sell equipment, we run it through the ringer; if it can pass our tests I can feel comfortable selling it.”

 

> MUNICIPAL

Massachusetts Associations Launch Recycling Initiative
The Massachusetts Beverage Association (MBA) and the Massachusetts Food Association (MFA) have announced plans to launch a two-year initiative aimed at increasing recycling throughout the state.

Called the Massachusetts Recycling Challenge, the program aims to build on past investments and to enhance residential recycling programs while increasing the presence of “on-the-go” receptacles to encourage recycling in public places.

“While Massachusetts has built up its infrastructure for recycling over the past several years, there is still much work to be done as far as increasing our state’s recycling rate,” says Chris Flynn, president of the MFA and spokesman for Real Recycling for Massachusetts—a coalition of citizens, businesses and community organizations that support a comprehensive approach to recycling. “Our industry is committed to playing a leading role in increasing recycling in our state, and we believe this initiative can set the stage for meaningful progress.”

Through the challenge, pilot programs will be established to help communities improve recycling rates. As part of the program, a nonprofit organization will engage consultants to provide technical advice to targeted communities looking to institute “pay-as-you-throw” programs. In addition, the organization will purchase about 200 on-the-go recycling receptacles to be deployed in high visibility locations in target communities.

“Legislative leaders in Massachusetts have spoken clearly that they want a comprehensive approach to recycling across the commonwealth and they are looking for a commitment from our industry to help lead the way,” says Chris Crowley, executive vice president of Polar Beverages in Worcester and chair of the MBA. “That’s a challenge we embrace, and through the Massachusetts Recycling Challenge we hope motivated communities will see the opportunity to make a difference.”

The two-year, $533,000 pilot program will be implemented in 2013 and 2014.