Insidewaste___PREBIND_LR August 2016 | Page 23

// Scrap metal There is no lack of scrap metal or people to buy the material. (Credit: Andrew Malone, Flickr CC) 4000 picks/h 24/7 Up to 98 % purity Up to If you can get through the tough times and you run a leaner, tighter, and more cost-effective ship in tough times, you’ll be able to get through it in the long-term. NICK CHAMBERS lot more ability for even the small scrap recycler to export. There has also been an advent of interest from India and Bangladesh and [other parts of] Asia, and they’ve come here physically looking for scrap... in some circumstances, knocking on people’s doors saying, we want to buy your scrap.” For Coyle, this has presented an opportunity for suppliers. “It’s created a market for us because we sell machines to help small to mid-tier scrap recyclers remain competitive. We sell equipment that people may buy for their small yards, not the big facilities,” Coyle said. “They’re simplistic machines that either cut scrap up into a size that can be put into a container so recyclers get maximum density, or they’re compressed into bales and put into containers.” How long are you in it for? It may be a challenging market but Sell and Parker has been on an expansion drive. Over the last few years, the company has opened and installed large processing plants in Port Hedland in Western Australian and the Northern Territory, and will soon open a facility in Blacktown in NSW. Parker believes there will always be scrap that needs to be recycled, even as Australian manufacturing continues to decline. “But the feedstock is changing. With the closure of these manufacturers, you’re losing a lot of prime grade scrap, which is the offcuts from the manufacturing process. But the secondary grade, which is postconsumer so your cars or white goods or galvanised iron, that is still growing because it’s a function of population as opposed to manufacturing,” Parker said. The company’s plan is to continue to invest in order to maximise efficiencies because the 50-year-old scrap recycler intends to stick around for a long time. But not all recyclers are on the same page. It’s difficult to fault them given margins are tight and in order to get by, many are turning to cheaper equipment to ride out the storm. “The challenge that we and other suppliers are facing, is the advent of Chinese manufacturers who can do it much cheaper. But the quality of these machines is not there. You can buy them cheaply but they will last for maybe three years. That’s a big game changer,” Coyle said, which makes sense because when it comes to scrap metal recycling, machines make a world of difference given you’re talking about processing extremely abrasive materials. So it all comes down to how long you’re in it for? As Parker aptly put it: “We’ve seen good times and bad times, iw that’s life.” Weekly news updates at www.BEN-global.com/waste 8 fractions in one spot TRUE HANDS FREE SORTING EFFICIENT & PROFITABLE 24/7 ZRR is programmed to maximize your profit! FLEXIBLE OPERATION ZRR is multitasking, sorting many fractions at the same time. SIMPLE WASTE SORTING Reduces the need for complex pre-processing. Robots in Waste / Phone: 0435 776796 Email: [email protected] www.zenrobotics.com AUGUST 2016 INSIDEWASTE 23