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 venture (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 learned.
Effective immediately, 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 said.
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 viable.