Leaks: the whys and wherefores
Research has revealed the existence of "leaks”- vehicles that are missing from the recycling system. In theory, all vehicles deregistered with the Government Road Transport Agency (RDW) for dismantling should effectively arrive at the shredder. In practice however the situation is very different. The explanation previously given by ARN Auto Recycling was an increase in the number of end-of-life vehicles waiting to be dismantled at the car dismantling businesses. But this cannot be the case year after year. After all, there is a limit to the storage capacity available to a car dismantling company.
Forms of leakage flow
ARN Auto Recycling distinguishes two types of leakage flow:
- End-of-life vehicles are disposed of according to the wrong Eural code and as a result, are no longer traceable.
- End-of-life vehicles are illegally disposed of via a chopper.
Both methods of disposal result in a higher metal price. The difference in yield between cutting and going to the shredder is on average 5 eurocents per kilo. This is because chopped iron is sent to melting furnaces, and cutting is a cheaper process than that employed in a shredder. The law however states that end-of-life vehicles must be disposed of via a shredder. In fact, an economic offence is being committed. At higher metal prices, the leakage flow is greater.
ARN taking initiatives
ARN Auto Recycling has taken a number of initiatives aimed at reducing the leaks. We will tell you more about these measures in future newsletters. ARN is also working on its magazine 95, which will focus specifically on leaks. This magazine is due to be published in August.
New trend in 2010
2010 for the first time showed another trend: more end-of-life vehicles are arriving at the shredder, than deregistered. The positive of 16,473 can be explained by the rise in metal prices in that year. The market was on the move again and stocks of dismantled end-of-life vehicles that had been built-up from 2009 were delivered for processing at the shredder installations.
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