Seco Tools sets recycling-related circularity goal

Fagersta, Sweden-based Seco Tools says it is “uniquely placed to make a strong contribution to the circular economy” via the recycling of its discarded end-of-life carbide tool components.

Recycling will play a key role in reaching Seco Tools' ambitious goal of being 90 percent circular by the year 2030, the company says, adding that its planning includes a number of changes to processes and business models.

“It’s a challenging target, but we see this as very important for our company and our business,” says Ted Forslund, sustainability and audit coordinator at Seco Tools. “What is good for Seco Tools is that we already have very good recycling processes, so now it’s about creating a good partnership with our clients so that they understand the value of us buying back tools, so that it becomes a closed circle where nothing goes to waste.”

Seco Tools says it can put itself “in a strong position” to have a high recycling rate by buying back tools that have reached the end of their productive lives and recycling or repurposing them into new tools. “If we increase that kind of trade where we buy back [scrap] and get customers to understand the advantages of it, we can reduce the climate impact, as we won’t need to use new materials and metals. It’s a win-win in many ways,” says Forslund.

The company cites an “ever-growing awareness of environmental concerns” as meaning suppliers and customers are keen to see initiatives that address them. “This has proved very positive so far with customers,” says Forslund. “They know the tools we produce using recycled materials are of the same very high standard, that there is no drop-off in quality. There is now also a market for the buyback of tools that have reached the end of their useful lives, and that is a positive thing for them too. It’s about getting this into our business relationships in a positive way.”

The company also says cost-efficient and better quality collection and treatment systems and effective segmentation of end-of-life products will enable Seco Tools to support the economics of circular design.

“It is essential to work with our suppliers and customers in order to take on the global challenge,” says Forslund. “If we do, we can create more value with less waste within a safe operating space for our planet—again, it’s a win-win situation.”