Scrap Industry News

NHTSA Extends Deadline
The National Highway and Traffic Safety Administration (NHTSA) has extended the deadline for companies to crush vehicles generated through the Consumer Assistance to Recycle and Save (CARS) program (“Cash for Clunkers”) from 180 days to 270 days.

The rule amends regulations that were implemented when the program was introduced July 29, 2009. The 90-day extension will allow the public to benefit from the availability of lower-cost used parts from vehicles traded in under the CARS program and will provide disposal facilities with an opportunity to derive more revenue from those vehicles prior to crushing or shredding, NHTSA says.

In its initial meeting with representatives of disposal facilities, the NHTSA determined that 180 days was an appropriate amount of time to allow a disposal facility to possess a car prior to crushing or shredding. The allowed time was determined based upon an estimate that 250,000 vehicles would be traded in under the CARS program, which would run for four months.

In light of the popularity of the CARS program, the initial $1 billion in available funds were quickly depleted, and Congress provided the CARS program with an additional $2 billion. By the end of August, those additional funds also were depleted and nearly 700,000 new vehicles had been sold under the program.

Automotive Recyclers Association Executive Vice President Michael E. Wilson states, “This extra processing time will expand benefits from the Cash for Clunkers program by providing additional consumer access to economical “green” recycled automotive parts harvested from vehicles traded in under the program.” Wilson adds, “We are appreciative of the agency’s acknowledgement of the additional consumer benefits that can be garnered by granting an acceptable extension.”

Ocala Recycling Receives RIOS Certification
Ocala Recycling, Ocala, Fla., has become the first facility to be certified to the Recycling Industry Operating Standard (RIOS), developed and offered by the Institute of Scrap Recycling Industries Inc. (ISRI), Washington, D.C.

“Ocala Recycling is extremely proud to be the first RIOS-certified facility. We hope that this builds momentum and excitement for RIOS in the industry so that others seek and complete RIOS certification,” says John Bianculli, Ocala’s director of systems implementation.

To receive its RIOS certification, this past summer Ocala underwent a two-stage initial certification audit conducted by SGS Systems & Services Certification. The Stage 1 audit included a review of Ocala’s RIOS documentation to ensure its readiness for a Stage 2 audit.

During the Stage 2 audit, SGS visited  Ocala’s facility and interviewed employees over three days to audit Ocala’s RIOS management system against the requirements of RIOS. At the same time, the ANSI-ASQ National Accreditation Board (ANAB) assessed SGS as part of the RIOS accreditation process.

ANAB accredited SGS as the first RIOS certification body Oct. 30, 2009.

Developed by ISRI and its member companies, RIOS is a scrap industry-specific management system for quality, environment, health and safety (QEH&S). It is designed to provide a framework for recyclers to achieve measurable, continual improvement in QEH&S performance, without the need to duplicate overlapping systems, according to ISRI.

“I commend Ocala Recycling on becoming the first Recycling-Industry-Operating-Standard-certified facility in the world—this is a distinguished honor for Ocala Recycling and for Marion County,” says Cliff Stearns, Florida’s Sixth District Congressional representative.

SMM Raises Money for Acquisitions

Sims Metal Management Ltd. (SMM), New York, has announced plans to raise $365 million via an underwritten private financing arrangement. Additionally, the company is seeking to raise another $68 million in additional equity by issuing additional shares of stock.

The company says the money raised will provide SMM with the flexibility to pursue its growth agenda, including accelerating the company’s acquisition growth strategy and currently identified capital expenditures relating to technology efficiencies. The announced agenda includes the Metal Recycling division and its Sims Recycling Solutions (SRS) business.

SMM has noted that since the completion of the Metal Management merger in March 2008, the company has spent around $168 million in acquisitions. Some of the deals include North Coast Recyclers, Australia; Life Cycle Services, U.K.; Clearhouse Technology, Australia; Evans & Mondon, U.K.; C. Herring & Son Ltd., U.K.; Weinert Recycling, U.S.; Global Investment Recovery Inc., U.S.; All Metal Recovery, U.K. and Fairless Iron & Metal, U.S.
Development of new technologies has been a focus for Sims in recent years, the company says. SMM says it intends to roll out globally what it calls third-generation downstream shredder technology to facilitate greater recovery of nonferrous metals and reduce waste going to landfills. The technology is already being used within the company, according to a Sims news release.

Sims Metal Management also is investing in its metal recycling and SRS operations through the construction of an electronics recycling facility in Canada; an aerospace recycling facility in Connecticut; and the NYCRC recycling facility in Brooklyn, N.Y., which is still in the planning and construction phase, Sims says.