Welcome   Guest · ·

AL Circle Blog

Aluminium Industry Trend & Analysis, Technology Review, Event Rundown and Much More …

Aluminium Industry Trend & Analysis, Technology Review, Event Rundown and Much More …

Downstream

The Aluminum Can Wars Begin

Contributed by:

In 2009, in a joint effort, aluminum companies Alcoa and Novelis decided to centralize their aluminum can collection. In 2011, the two companies accumulated 40 billion cans. However this past August, in order to start its own collection program, Novelis split from Alcoa. Both companies are now at war, trying to out-collect the other.

In Novelis’ new program, the company wishes to collect 60 billion cans by 2015. Through a solo program, the company will have full autonomy and be able to increase its aluminum purchases. Novelis also wants to increase its scrap sources to 80% by 2020, which would be a 35% boost.

Alcoa and Novelis are sizably different companies. While Alcoa produces mass quantities of primary aluminum, Novelis only has one smelter located in South America. Novelis largely depends on other companies for its raw aluminum supply, and will now have to become more adaptable in how it obtains scrap metal.

According to the Aluminum Association, “manufacturing cans from recycled aluminum uses 95% less energy than manufacturing them from raw materials.” Alcoa is looking to increase its collection numbers by implementing new technology: vending machines that give cash or credit for Used Beverage Cans (UBC). Alcoa is also looking into increasing the number of recycling bins in large communities, like apartment building and condominium complexes.

While Novelis and Alcoa duel over collection schemes, scrap yards remain the best and biggest cumulative source of UBCs. Scrap yards gather and sell almost 40% of recycled UBCs.

The question to answer: will Novelis’s and Alcoa’s new collection methods positively affect the US’s recycling rate? Although, time will tell , however, we are betting that it will affect positively.

For further reading please see http://phinix.net/blog/?p=897

Conceived, Developed and Written by Dr. Subodh Das and Austin McKinney on October 6, 2011

Dr. Das is a prolific writer and a well-recognized and respected expert and consultant to the global aluminum industry specializing in the areas of industry trends, technology, recycling, manufacturing, carbon management and new product & process developments.

Dr. Subodh Das can be reached at skdas@phinix.net or www.phinix.net

Like this Article? Subscribe to Our Feed!

About Dr. Subodh Das

Dr. Das is well recognized and respected thought leader, expert and consultant to the global aluminum industry specializing in the areas of industry trends, technology, recycling, manufacturing, carbon management and new product & process developments. He is prolific writer of papers and books and frequent invited presenter at international conferences and an active blogger. Subodh is the Founder & CEO of Phinix, LLC (2008 - present). Dr. Das has about 40 years of global aluminum experience in manufacturing and technology areas covering wide disciplines including executive, project, operational, financial and technical management as well as being an accomplished scientist, engineer and inventor.

Leave a Reply

Your email address will not be published. Required fields are marked *