Recap 2016: Aluminium Recycling Highlights

Sustainability in aluminium industry gained paramount importance in 2016. While in Malaysia, we saw the government coming down heavily on unregulated bauxite mining that caused irreparable damage to the water bodies in Pahang, environmental tightening in China forced China Hongqiao, the world’s largest aluminium smelter to cease production at its plant. Aluminium recycling, which unarguably is the most sustainable step in aluminium value chain, also gained momentum globally this year. Many brands came forward to encourage aluminium recycling among consumers and many countries too upped their scrap aluminium recycling pursuits in an effort to meet sustainability targets set by the United Nations Framework Convention on Climate Change (UNFCC).

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As 2016 nears its end let’s take a look at the aluminium recycling highlights of the year:

I. Who met the recycling targets & who missed the bus?

1. UK is on track to meet or exceed annual recycling targets for aluminium packaging. In 2015, over 75,000 tonnes of aluminium packaging was collected for recycling in the UK. Over 60% of that was recycled in the UK and the rest was exported.

2. Q3 CIWM Packaging data shows aluminium recycling in the UK totalled 21,724 tonnes in 2016, reaching 82% of the target. According to a report published by Alupro in April, national recycling rate for all aluminium packaging now stands at 55% (previously 48%) and the estimated recycling rate for aluminium drinks cans has reached 69% (from 60%).

3. The European Aluminum Foil Association (EAFA) revealed the recycling rate of aluminium closures in Europe has increased to more than 50% owing to enhanced collection and newly initiated recycling schemes. The Asia-Pacific region is anticipated to generate US$ 212,118 million by 2022 and is estimated to grow at a CAGR of 5.2% during the forecast period.

4. According to figures released by the “Aluminium Closures – Turn 360°” campaign by the European Aluminium Foil Association, the average recycling rate for aluminium closures in Europe increased to more than 50%.

5. Expansion to boost aluminium aerosol can recycling in Germany.

6. According to the Institute of Scrap Recycling Industries Inc. (ISRI), over 70% of aluminium scrap generated in the U.S was consumed domestically in 2015, and the rest was exported.

The Aluminium Packaging Recycling Organisation (Alupro) urged DEFRA to increase the future recycling targets and make them more ‘front end loaded.’ This was to ensure the producer responsibility system remains attractive to reprocessors and exporters. Alupro’s advice was aimed at creating a strategic roadmap towards achieving 2020 and 2025 recycling targets.

II. Achievements & Awards:

1. The world recycling giant Novelis bagged the prestigious European award for its closed loop car production project - the REALCAR (REcycled ALuminium CAR) at ALUMINIUM 2016, in Düsseldorf, Germany.

Jaguar and Land Rover recovered over 45,000 tonnes of press-shop aluminium scrap through REALCAR programme it launched in 2008 and in 2015. As a partner in the project, Novelis came up with a new aluminium alloy- RC5754 alloy with up to 75% recycled aluminium content.
 
2. Volvo saved 300 tonnes of aluminium through its remanufacturing activities in 2015. The company is working towards boosting the amount of recycled materials (non-metallic as well as metallic parts made of steel or aluminium) in its cars and reducing the quantity of virgin materials.

3. Ford is recycling as much as 20 million pounds of aluminium stamping scrap per month using the closed-loop system at Dearborn Truck Plant which builds F-150. The figure is the equivalent to more than 30,000 F-150 bodies in the largest configuration.

4.Pepsi became the first brand to feature the marque of ‘Every Can Counts’ initiative along with the call-to-action “please recycle” on its cans.

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III. Projects Initiated & Partnerships Forged:

1. Premium coffee brand Nespresso partnered with Australia Post in aluminium coffee capsule recycling programme.

2. Constellium partnered with Nespresso to recycle used aluminium capsules in Switzerland as a part of the initiative Second Life.

3. German company Remondis’ Respray division opened an aerosol can recycling system at its industrial recycling centre in Bramsche, Germany.

4. Matalco, a sister company to the recycling firm Triple M Metals opened a new secondary aluminium plant in Lordstown, Ohio.

5. Scrap metal processing company Upstate Shredding – Weitsman Recycling of Owego, New York, was recognized by Platts for their scrap recycling pursuits.
 
6. Hydro commissioned a EUR 45 million new facility at its Neuss plant in Germany with the aim to recycle up to 50,000 tonnes of used aluminium beverage cans per year.

7. Gravita India made an entry into aluminium recycling at its new recycling plant at Phagi, Jaipur with an initial capacity of 6000 MTPA of aluminium alloy production. The company will be manufacturing aluminium automobile alloy by recycling aluminium scrap.

8. Gulf Aluminium Rolling Mills Company's (Garmco) started construction work at its $55 million aluminium remelt plant near its main production facilities in Bahrain.

IV. Important Announcements Made:

1. India’s Ministry for Road Transport & Highways announced that a new vehicle scrappage policy will be implemented shortly whereby old cars will be scrapped and scrap aluminium, steel, and copper recovered will be supplied to OEM manufacturers at cheaper rates. The policy will be implemented in a phased manner.

2. JLR is planning to start using 75% recycled aluminium for making Jaguar and Land Rover vehicles from 2020 onward.

3. India's Environment Ministry released new rules for waste disposal and metal recycling marking a step ahead to building a more structured aluminium recycling system in the country.

4. Vedanta is contemplating revival of the Madras Aluminium Company (Malco) in India. The firm says they are considering the possibility of reopening the plant and utilizing the facility for making recycled aluminium.

5. South Africa’s aluminium products manufacturer Hulamin announced plans to invest ZAR 300 million (US$ 25.4 million) for an aluminium recycling plant in the country.
 
6. Novelis announced a new commitment to convert its entire beverage can body sheet production to its evercan™ sheet, the world's first certified high-recycled content aluminium for beverage cans, by the end of 2017.

According to a recent report, global metal recycling market size will grow from USD 277.12 billion in 2015 to reach USD 406.16 billion by 2020, at a projected CAGR of 7.95%. The metal recycling market will be essentially driven by strict laws pertaining to waste management.

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