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THE PULSE
Newsletter of the Canadian Association of Recycling Industries
Volume 13, No. 8, August 2008

This issue of THE PULSE is sponsored by

Click the image above or visit http://www.cowangroup.ca/cari-07 for information.

MERCURY SWITCH PROGRAM UPDATE

Visit www.agroinsuranceinc-crhb.ca for info.

The Clean Air Foundation (CAF) made a collection sweep in July 2008 and collected more than 4,000 switches from recyclers in Ontario. To any members who still have an old container and haven’t sent it back, do so as soon as possible. CAF will be sending new printed materials to registered members later in August. For more information please visit the website www.switchout.ca .

Again, CARI members who receive vehicles should ensure 1) that the switches have been removed or remove them yourself, and 2) that your suppliers are registered in the Switch Out program and removing the mercury switches. CARI encourages its members who have not registered for the Switch Out program do so, as steel producers are required to purchase mercury-free scrap from recyclers. To register, go to http://www.cleanairfoundation.org/switchout/register_so.asp .

CARI MEMBER

Vancouver-based CARI member, Teck Cominco Ltd’s deal to purchase Fording Canadian Coal Trust, Calgary will have an immediate impact in the steel market analysts say. They further predict that raw materials prices will remain high in the future and that the value of Teck will triple because its involvement in the oil sands.

BUSINESS FOR SALE

A CARI member in south western Ontario wishes to sell its 30 year old business. The 12 acre yard consists of a 9 to 9 ½ acres wrecking yard, a 16 thousand square foot shop (10 thousand floor heated) with a security system, and a three bedroom house with an attached car shed. It deals with all metals and has two scales; one outside and a smaller one in the building to handle brass, copper, etc. The member wishes to sell the business with all the equipment. An estimate of gross annual sales and a list of our equipment and trucks can be supplied.

Any interested member should contact Len Shaw for further details.

SCRAP THE THIEVES

There are positive signs in today’s market that insurance rates are stable or declining for clients in a broad range of industries. This is also true for members of the insurance program offered through the CARI. Our broker, Cowan Insurance Brokers works closely with its underwriter, Lombard Canada, and CARI to offer the best rates and the broadest coverage terms possible.

Visit www.cowangroup.ca/cari-07 for info.

However, claims challenges lie ahead for recyclers, particularly in the area of metals theft. This is an issue that has increasingly caught the attention of CARI and hundreds of metal recyclers across Canada. In some cases, materials might be stolen from a recycler’s site and in others scrap processors may inadvertently purchase stolen materials.

Insurance premiums are based on your claims experience. While insurance is there to recoup losses, it is much better to have a sound risk management strategy to avoid the disruption of a claim. The emphasis moving forward must be on loss reduction through such measures as procedures for identifying suspicious materials and appropriate security procedures.

CARI’s position has been to work cooperatively with police and law enforcement agencies to share information related to stolen materials. The CARI board has approved funding to work on a web-based metal theft bulletin system, which would quickly alert police and recyclers to suspicious materials. CARI is also opposing municipal “tag and hold” by-laws, which require all used-goods retailers, such as recyclers, to collect extensive, sensitive information from all customers selling to them and to hold material for a given period of time. Such by-laws are impractical and ineffective for recyclers.

Instead, CARI wants the emphasis to be on companies and individuals to take responsibility to secure their property and ensure materials bought are legitimate. Whether your firm is a large scrap processor or smaller recycler, preventing the purchase of stolen materials should be a critical part of your loss prevention program.

The following are recommended practices and procedures to address the risk of purchasing stolen scrap materials.

• Develop a working relationship with local industry, police and municipalities; explain the recycling sector and the challenges involved in preventing the inadvertent purchase of stolen scrap.
• Inform these groups of CARI’s involvement with metal theft and in particular the metal theft bulletin.
• Be cautious of certain kinds of materials, such as items used by governments or utilities, material with company logos, plaques etc.
• Train scale operators and receiving personnel how to identify suspicious material through standard sets of questions and satisfy themselves that the seller is the rightful owner or authorized to sell.
• Post CARI Metal Theft Bulletins at the scale.
• Collect seller’s information, such as driver’s license number or government identification, license plate number of the vehicle or obtaining the seller’s signature for each transaction;
• Track financial transactions, particularly by encouraging payment by cheques, ATM and, if by cash, requiring receipt and certification that the seller is the owner or authorized seller of the materials;
• Consider installation of a video camera with a time stamp at the scale or cashier.

You also should protect your recycling operation from the threat of material theft by such actions as:

• maintaining a current inventory of all equipment and material;
• installing theft alarm systems on premises;
• keeping storage yards well-lit and fenced, with entrance gates, windows or secondary doors locked and checked at close of business; and
• hiring a security patrol or watchman.

FAST FACTS

• With scrap demand forecast to increase by 10 percent in the coming year and more after that the Bureau of International Recycling (BIR) has sent a letter to ask the European Commission to take action against Russia, which plans to raise export tariffs on steel scrap by November. It noted that trade barriers could jeopardize the free movement of raw materials across borders and insisted on free access to raw materials worldwide.
• Washington state and electronic producers plan to co-operate on an electronics recycling program commencing in January 2009. The intent is to provide free recycling of TVs, monitors, desktop computers and laptops for household and small business. Processors must obtain approval from the state authority and the state will negotiate individual contracts with the collectors. Manufacturers have the options to establish their own programs but not likely before 2010.
• The AAR (Association of American Railroads) through their Open Top Loading Rules Committee recently voted to prohibit the loading of loose commodities in mounds above the top chord of any open top rail car. Although this move will increase costs for shippers the committee feels it will decrease railcar derailment and accidents or injury frequencies, the main driving factor. An official from Canadian Pacific has confirmed that this new regulation will also be applied in Canada. It is anticipated to take effect at the end of September 2008.

BUSINESS OPPORTUNITIES

SGV Maritimes a company from Saint John, New Brunswick, Canada is seeking for 30,000 MT of Shredded Scrap every 3 months. Interested members can contact Kumar, Purchasing Agent at Tel: (506) 635-2572 or email: sakhinak@gmail.com.

Recycle366 ( www.recycle366.com) a Chinese recycling network group is seeking a minimum order of 1000 MT of used rail R50 and R65 for its members. Interested members can contact Simon Paul, Trading manager at Tel: +86 574 87914491 or email: zliyclx15@hotmail.com .

BUSINESS FINANCING OPPORTUNITY

Members wishing to grow their businesses may consider contacting BDC (Business Development Bank of Canada www.bdc.ca ) which has the specialized knowledge and solutions to help.

Flexible financing

• Purchase, construct or expand a building
• Acquire new equipment
• Secure working capital to increase inventory, do R&D and take on other growth projects
• Benefit from a higher percentage of financing and repayment options that are tailored to your cash flow

Customized consulting services

• Lean manufacturing and operational efficiency
• Preparation of SRED (Scientific Research & Experimental Development) tax refunds
• Strategic and succession planning
• Human resources planning
• Marketing and sales plans
• Quality management solutions (ISO, HACCP)
• Business coaching

BDC is interested in meeting scrap dealers and learning more about the business and its projects.

GTA members, in particular, can contact Andy Mittra / Stephen Bald at 905 305 8516. Others may call 1-877 BDC-BANX (232-2269) or meet up with the local BDC branch.

CARI EVENTS

CARI’s Quebec Chapter’s Golf Tournament
August 19
At the Drummondville Golf Club
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CARI’s 11th Annual Consumers’ Night
November 10
at the Fairmont Royal York in Toronto
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For information on CARI events contact Donna Turner at (905) 426-9313

OTHER UPCOMING EVENTS

• Sep. 11 and 12, The Basic Industries Group will host Aerospace materials Outlook & Forecast Conference 2008 at the Hyatt Regency Philadelphia in Penn’s Landing, Pennsylvania. There is a discount rate for all CARI members attending this conference. For information and to register visit www.thebasicindustries.com/conferences.php
• Sep. 15 to 17, ISRI will host Commodities Roundtable Forum at Hyatt Regency, Chicago. For information visit here .
• Sep. 17 and 18, Resource Recycling will host E-Scrap 2008 at the Renaissance Glendale Hotel & Spa in Glendale, Arizona. For information visit www.e-scrapnews.com
• Sep. 17 to 19, ICM AG – International Congress & Marketing will host the 13th International Congress for Battery Recycling at the Hotel Intercontinental in Düsseldorf, Germany. For information visit www.icm.ch/index_battery08.htm .
• Oct. 7 to 9, Reciclagem Moderna Magazine will host Expo Sucata, South America’s Scrap Recycling Industry and Trade Show at the Centro Exposicoe Imigrantes in San Paulo, Brazil. For information call 55 11 5535.6695 or visit www.exposucata.com
• Oct. 8 to 10, the Union of Companies for the Recovery of Raw Materials from the Cuban Ministry of the Sidero Mechanic Industry (SIME) will host the XI International Congress of the Recycling Industry ¨Industrial Process: Best Recycling Efficiency¨ at the Conventions Palace, Havana City, Cuba. For information contact Maria Martha Salaberry Padrón reciclaje@uermp.cu.
• Oct. 8 to 10, the Recycling Council of Alberta (RCA) will host its 2008 Waste Reduction Conference “Paint The Town Green” in Jasper, Alberta. For information visit www.recycle.ab.ca/rca_conference_2008/index.html.
• Oct. 23 to 25, 2008, ISRI will host its 2008 Operations Forum at Hilton Hotel, in Long Beach. For information visit www.isri.org.
• Oct. 30 and 31, Bureau of International Recycling (BIR) will host its fall meeting at the Hilton Hotel in Düsseldorf, Germany. For information visit www.bir.org
• Nov. 3 to 5, Terrapinn Ltd will host the 4th World Scrap Metal Congress at the Intercontinental Pudong in Shanghai, China. For more information www.terrapinn.com/2008/scrap.
• Nov 5 and 6, Messe Frankfurt Inc will host Canadian Waste & Recycling Expo 2008 at the International Centre in Toronto, Ontario. For information visit www.cwre.ca