NEW YORK Alcoa
Inc. has merged Evermore Recycling LLC, its used beverage can
(UBC) procurement group, with its aluminum scrap purchasing
group to form a single operation called Alcoa Recycling.
Barely a year after
acquiring Novelis Inc.s equal stake in the Evermore joint
amm.com, July 16, 2012), Alcoa has now combined
both teams to task all its buyers with procuring every aluminum
scrap grade it consumes. Under Alcoa Recycling, buyers
previously focused on UBC procurement for Evermore will be
trained to also acquire non-UBC grades, while current non-UBC
scrap buyers will be trained on UBC buying, AMM has
Michael Boyle, director of metal management at Alcoa, will
oversee Alcoa Recycling, while the position of Evermore general
manager John Woehlke has been eliminated and he is no longer
with the company.
Boyle had been poised
to helm Alcoas raw materials business (
amm.com, July 29).
Alcoa said it combined
Evermore with its aluminum scrap purchasing group, which
acquired aluminum used in other markets such as aerospace,
automotive and industrial, into a single organization "to
further increase the amount of aluminum that is converted back
into new products."
"The vast majority of
our partners in the marketplace have the capability to supply
both scrap and UBCs to Alcoa for recycling," Boyle said in a
statement. "This new organization will now interface with the
market as one entity."
With 1.4 billion
pounds of external aluminum in 2012 across its UBC and aluminum
scrap groups, Alcoa Recycling will focus on adding more
closed-loop recycling programs in an attempt to reduce volumes
procured from the open market. Alcoa Recycling also will focus
on profitably growing the overall amount of recycled aluminum
the company utilizes for its products, Boyle told AMM
Sept. 3, but offered no volume or target estimates. He said the
absorption of Evermore into a unified scrap buying team came as
no surprise to company employees, who were informed of this
direction a year ago.
"It is not about cost
savings for us; it is about growing more in this area.
Weve spent a lot of the past 12 months in identifying who
was buying what. This is less of a shock to our system than
perhaps outside. We will now have a unified presence. The focus
is to increase recycled content in a profitable way," he
Alcoa Recycling will
look at increasing its closed-loop recycling programs in
aerospace as it looks to strengthen its relationships with
Chicago-based Boeing Co.s subcontractors, Boyle said.
"You put a lot of effort into making those (aerospace) units,
and being able to bring that scrap back is high on our priority
list. We are working on systems with our customer base to keep
the 2000- and 7000-series alloy scrap separate to maximize what
they get for it."
In addition, Boyle
said Alcoa Recycling will be primed to identify and consume any
grade of aluminum scrap that is typically outside its buying
program should the grade offer the right chemistry and be