Page 15 from: May 2008

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The US recycling industry is
offering investors one of the few ways
to profit during the current recession,
according to a report released by pub-
lisher Progressive Investor. ‘Ever-esca-
lating energy prices, commodity price
inflation and scarcity, and global envi-
ronmental concerns have coalesced
into a “perfect storm” for the industry,’
suggests Eric Prouty, Senior Energy
Analyst at Cannacord Adams.
It is estimated that the US recycling
industry pulled in revenues of US$ 236
billion last year, accounted for around
2% of gross domestic product and
employed more than 1 million people.
Entitled ‘Investing in Recycling’, the
publication emphasises the following
points:
* Higher energy costs make recycled

materials more economically valu-
able. For example, energy accounts
for 20-30% of the cost of making
metals such as aluminium and zinc.

* Rising metal prices create strong
economic incentives to recycle all
kinds of metal.

* Recycling benefits from the attention
given to climate change because of
its ability to reduce the energy inten-
sity of manufacturing and the meth-
ane generated through the landfill-
ing of waste.

* There is growing recognition that
natural resources are scarce, finite
and increasingly expensive to mine.
For example, virgin copper and zinc
supplies could be completely
exhausted within decades.

* There is also rising concern about
pollution from discarded electronics.

The report profiles the top recycling
stocks, including Casella Waste Systems,
Metalico, Schnitzer Steel, LKQ Corp.,
Interface and Sims Group. For more
information, contact Rona Fried on tele-
phone number +1 631 423-3277 or via
E-mail: [email protected]

Recycling makes up 2%
of US GDP

Following the Dutch government’s
introduction of a tax on plastic packag-
ing materials, the Nedvang packaging
manufacturers and recyclers co-opera-
tive is launching a dedicated collection
scheme.
By contracting globally-operating waste
management firms such as SITA, Mid-
waste and Remondis, Nedvang plans to
establish a network of 60 locations for
the storage, separation and recycling of
plastic packaging waste. According to
Nedvang, this constitutes an important
step towards raising the recycling rate
from its current level of 22% to the
government target of 38% for 2009.
Nedvang began collecting post-con-
sumer plastic in 52 local communities
last year and expects the number to
increase to 250 by the end of 2008.
SITA, Midwaste and Remondis will be

responsible for recycling the plastic
packaging. Material will be baled in
the Netherlands and transported to
facilities in Germany for processing
into granules. ‘As the Netherlands still
lacks this kind of facility, because it has
just started single collection, it will be
treated in Germany,’ explains Anton
Hekstra, who is responsible for recy-
cling at Remondis.
Plans are already in place for the con-
struction of two or three sorting installa-
tions in the Netherlands once the
nationwide collection network has been
established, according to Nedvang.
Since the beginning of this year, com-
panies have paid a total of Euro 365
million (US$ 564 million) in packaging
levies, of which Euro 104 million (US$
161 million) is destined to fund the
new collection and recycling initiative.

Dutch network for
plastics packaging

The US government has sold off
part of one of Arizona’s more unusual
tourist destinations – the aircraft ‘bone-
yard’ at Davis-Monthan Air Force Base.
The Aerospace Maintenance and Regen-
eration Center in southern Tucson is
home to roughly 4200 aircraft – includ-
ing C-141 Starlifters, A-4 Skyhawks and
HH-3E ‘Jolly Green Giant’ helicopters –
which have been retired from military
service. Some 2000 aircraft, weighing a
total of around 27 million pounds, were
auctioned for scrap.
The site receives thousands of visitors
a year, many on bus tours operated by
the local Pima County Air & Space Muse-
um. The Air Force needs to move out the
older planes, some of which are more than
50 years old, to make way for more current
models that are cannibalised to supply

parts to similar planes that are still flying.
Having been stripped of military equip-
ment and hazardous liquids, the air-
craft have been turned over to Govern-
ment Liquidation, the firm running the
on-line auction. Besides the Starlifters
and Skyhawks, the auction also includ-
ed an unspecified number of Titan mis-
siles. The planes and missiles contain a
mixture of aluminium, steel and mag-
nesium, among other materials. Buyers
had to agree to demilitarise the aircraft
by shredding and cutting them into
pieces no bigger than 4-inch squares.
Government Liquidation recently sold
650 000 pounds of scrap tyres at Fort
Stewart in Georgia and has also
opened up an on-line auction of uni-
forms and field gear.
www.govliquidation.com

USA sells 2000 aircraft
for scrap

Retired aircraft at Davis-Monthan Air Force Base ‘boneyard’.

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