Recyclable board a climate winner, FEFCO says - Recycling Today

2022-09-16 19:19:25 By : Ms. Lynn Deng

Reports supported by box-making federation say reusable packaging does not always offer the greatest emissions reduction.

The Brussels-based European Federation of Corrugated Board Manufacturers (FEFCO) says three recent reports have “scientifically proven that reuse should be considered on a case-by-case basis, as it is not always the best environmental option.”

The group adds, “A peer-reviewed study shows that reusable packaging has a stronger [negative] impact on climate than recyclable corrugated.”

Three studies released by FEFCO were conducted by consultancy Ramboll and Finland-based research institute VTT. The studies evaluate the impact of recyclable corrugated board packaging compared to reusable plastic packaging and revealed a series of important conclusions, FEFCO says.

A peer-reviewed comparative life-cycle assessment compares the environmental impact of corrugated cardboard boxes and plastic crates when transporting produce over average distances in Europe. Key findings, extracted by FEFCO, show the corrugated board system is more beneficial in 10 out of 15 impact categories, including climate change and total resource use including fossil fuels, says the group.

A break-even analysis shows plastic crates would need to reach a minimum of 63 rotations to outperform corrugated boxes in the climate change impact category, FEFCO says. According to at least one life-cycle analysis, however, the average reuse rate of plastic reusable crates is only 24 rotations.

“Based on evidence, it is critical to consider that expressing a clear preference for reusable versus recyclable packaging is a narrow-minded approach,” says Eleni Despotou, FEFCO director general. “Legislative proposals must ensure that any packaging placed on the EU market is ‘fit for purpose,’ environmentally friendly, fulfils its functionality and prevents unnecessary waste which is the ultimate objective of policymakers,” she adds.

FEFCO concludes, “A well-functioning circular economy requires efficient and environmentally friendly circulation of materials where both reuse and recycled packaging have their role to play. However, a robust understanding of their impacts is needed. Therefore, policies must encourage sustainable packaging solutions that truly contribute to waste prevention. Using a blend of properly deployed lifecycle assessments will prevent unintended consequences for our environment and climate while allowing business to innovate and meet their commitments.”

Steelmaker forecasts record quarterly earnings per share figure for current timeframe.

Nucor Corp., Charlotte, North Carolina, has announced guidance for its second quarter ending July 2, 2022, that includes an earnings per share figure in the range of $8.75 to $8.85 per diluted share.

A figure in that range “would surpass the previous quarterly earnings record of $7.97 per diluted share set in the fourth quarter of 2021,” states the operator of scrap-fed electric arc furnace (EAF) mills and several dozen scrap yards.

Nucor reported net earnings of $7.67 per diluted share in the first quarter of 2022 and $5.04 per diluted share in the second quarter of 2021.

The company says its earnings in the second quarter of 2021 were held down in part by a “noncash impairment charge related to our leasehold interest in unproved oil and natural gas properties.”

The company says of current market conditions, “End use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of very strong earnings and cash flow for Nucor. Second quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets.”

The company says its steel and its scrap operations both are operating profitably in 2022. “The steel mills segment earnings are expected to strengthen due primarily to increased profitability at our bar, sheet and plate mills. Similarly, Nucor’s raw materials segment is expected to generate increased profits in the second quarter due to relatively higher selling prices for raw materials,” Nucor says.

Middle East recycling association says it is first outside Europe to join the federation.

The Bureau of Middle East Recycling (BMR), based in the United Arab Emirates, says it has attained membership in the Brussels-based European Recycling Industries’ Confederation (EuRIC).

In a June 15 email to members and supporters, the BMR says it is “the first non-European association” to become members of EuRIC.

BMS says a memorandum of understanding (MoU) was signed earlier this spring by BMR President Mir Mujtaba and EuRIC President Olivier François.

“A certificate of membership was exchanged along with BMR handing over a memento of appreciation to EuRIC on the association,” BMR says, which also credits Mujtaba “and support from strong team of board members” for initiating and engaging in the MoU process.

Global metals producer says the agreement gives it four more months to reach a longer lasting resolution.

The Liberty Steel subsidiary of the London-based GFG Alliance has reached what it calls “a standstill agreement” with its largest creditor, Germany-based Greensill Bank, regarding debts attached to its operations in Europe.

GFG and its metals producing subsidiaries have been struggling with cash flow and financing issues since the collapse of Greensill Capital and Greensill Bank in the first quarter of last year.

Greensill Bank worked with Liberty Steel and Liberty Commodities to use a receivables or supply chain financing technique that ultimately left the GFG Alliance exposed to creditors.

The new standstill agreement “pauses all enforcement actions until the end of October and can be extended until the end of the year,” according to Reuters. Liberty and other GFG metals production assets in several nations have been scrutinized by national governments claiming national security interests.

Reuters quotes GFG Alliance as saying, “We are working intensively towards a settlement with our major creditors in a timeframe which would obviate the need for a legal battle.”

Also on the legal front, the Serious Fraud Office in the United Kingdom announced an investigation of the GFG Alliance in May of last year.

Metal recyclers save time and money when functions and facilities are connected, say software vendor’s customers.

Customized, recycling-specific software is helping metal recyclers in Europe and other parts of the world save time and money by creating new efficiencies, says Ireland-based technology provider AMCS.

The company, which published a white paper on the subject in 2020 and periodically offers case studies involving its software, says scrap processors are seeking visibility into all their operations, including an ability to connect processes within one system across all locations.

Those connections, according to AMCS, range “from contracts, to work in progress, daily prices for commodities and materials, on-yard weighing, grading materials and the actual inventory, all the way through to accounting.”

In its white paper, AMCS quotes the CEO of Germany’s Kaatsch Recycling as looking back with little fondness on the company’s former paper-based system. Ralph Wager says, “Everything was on paper, including contracts, price lists, overviews of incoming orders and trip lists, as well as route planning and stocks of recycled materials. Information was not available centrally, but was communicated on a one-to-one basis with suppliers, customers and drivers.”

In the software era, Wager of Kaatsch Recycling, says technology “gives us a 360-degree view of the entire organization and lets us make constant adjustments.”

Starting with scrap procurement, Wager says the company knows “exactly which materials and quantities are involved. As incoming loads are being weighed, they are photographed and the images can subsequently be used to present to customers, should they have any queries or complaints.”

The system with cameras also brings internal benefits, Wager says. “Because of the integrated system we can check things such as which material has been weighed and whether it is of the right quality,” he adds. “I am convinced that digital processes and digitization will give recycling companies a competitive edge. In fact, this has already been proven to be the case, and it is set to become even more important in the future.”

Another German-based firm, Karle Recycling, says with its AMCS software it is able to “monitor all operational processes in one central system.”

Karle Recycling’s Bastian Lauer points to a specific feature as a crucial time-saver: the license plate recognition feature on its scale lets it complete a weighing process within seconds. “A significant benefit of speeding up the weighing process is that the recycling software contributes to reducing the overall on-site turnaround times,” AMCS says.

Lauer says, “Through the integration of the system the recycling software is also providing the possibility to capture all phases of a transaction, from weighing, mobile grading in the yard right through to accounting. That means all company specifics and all process specifics are in one system meeting our industry-specific solutions that meet our specific needs.”

Lang Recycling, also based in Germany, cites inventory management as a benefit of recycling-specific software. The AMCS customer says the software vendor’s RSBI technology allows it to better manage its sizable inventory in real-time, thus reducing its warehouse inventory by around 25 percent, “creating real savings in their cost of capital,” according to AMCS.

In an AMCS case study, Lang Recycling Managing Director Maximillian Lang tells the software firm Lang handles more than 400 grades of scrap metal.

Lang says, “In the past, our records were written down manually on slips of paper and later added to [the] AMCS [system]. As a result, our inventories were not updated every day, which exposed us to additional costs.”

Lang Recycling’s newly acquired AMCS technologies have included a mobile reporting app that enables employees to record and document inventory movements while on the move and as they happen, says Lang. An RSBI Business Intelligence system “makes it easier to make forecasts that are much better aligned to the sales flows,” AMCS adds.

Citing the 25 percent inventory reduction figure, Lang says, “By using mobile reporting and AMCS RSBI, we were able to save around 40,000 euros ($42,460) in cost of capital.”