Foreword
2009 brought serious economic problems, as foretold by the initial indications in 2008 and the even stronger ones in the second half of that year. The impact on the automotive industry was both dramatic and unprecedented: sales of new vehicles in the Netherlands dropped by over 22% to a total of under 390,000.
These developments also affected ARN. Although ARN is very much focused on long-term objectives and commitments, the short-term turbulence has its implications. The sharp drop in vehicle sales affected ARN financially through a reduction in the waste disposal fee income.
The introduction of the national scrappage scheme, which will continue in 2010, had high visibility and was very successful: over 50,000 transactions were registered under the scrappage scheme in just a six-month period. Both the organization and the implementation of the scheme were flawless. ARN played an important role in this and also made a substantial financial contribution.
Under the scrappage scheme, the environmental benefits coincide with economic stimuli for the automotive industry and the dismantling companies. The dismantling companies coped with and dismantled the increased number of end-of-life vehicles. It became clear on the sales side for both new and used vehicles that consumers have a growing preference for smaller, more economical and more eco-friendly models, which means that vehicles are becoming greener at a more rapid rate.
At the same time, considerable progress was made with achieving longer-term strategic objectives. Much work was done in Tiel on the post-shredder technology (pst) facility, where installation of the production line has already started. The PST facility will be operational at the end of 2010. The separation and processing of shredder waste to produce useful and usable material flows will then begin.
Another of ARN’s strategic objectives is to see the rules being monitored and enforced, and removal of end-of-life vehicles through illegal channels tackled. Considerable time and effort was devoted to this over the last year. ARN is adopting an active stance in this matter, because the disruptive effect on the market and the harmful environmental consequences of illegal practices are quite simply too big. ARN also wants to be actively involved in this in order to combat unfair competition for the ARN network of vehicle dismantling companies and ARN-certified shredder companies. This requires intensive supervision of the whole chain of collection and processing companies, which will benefit not only the environment but also all the parties in the chain.
More and more companies are being adviced with waste prevention and separation as well as with the storage and removal of waste in order to raise the level of ARN‘s services still further. The ARN environmental scan was developed to support companies in these activities in a systematic and, above all, practical way. There is substantial interest in the ARN environmental scan; in 2010 the collaboration with several dealercompanies and car repairshops will be extended.
In 2009 ARN also started to grow a consultancy business aimed at utilizing the expertise it has built up. A range of projects were carried out, for example the supervision of a shredder test in Ireland, a study of recycling options for recyclable precious metals from catalysts in Eastern Europe, Design for Recycling and the national scrappage scheme referred to above, as well as the supplementary scheme initiated by Amsterdam city council.
All these activities lived up to their promise, thanks in part to the organizational changes and reinforcements that ARN made in 2008 and 2009. ARN Holding now has four business units, which have shared the tasks and responsibilities in a logical and clear way: ARN Auto Recycling, ARN Recycling, ARN Recycling Services and ARN Advisory.
The revenues from the ARN Recycling Services and ARN Advisory business units are added to the waste disposal fund. The knowledge and expertise are thus capitalized, which ultimately benefits the processing of end-of-life vehicles in the Netherlands.
As regards personnel matters, management was reinforced at the beginning of 2009 by the arrival of Arie de Jong as COO. There was no change in the composition of the supervisory board in 2009. Mr K.J.F. Bukholczer replaced Mr B. Geerlings in mid 2009 as FOCWA’s representative on the executive board of the Auto & Recycling Foundation. We thank Mr Geerlings most sincerely for his efforts and involvement spanning the many years during which he was a member of the executive board.
The sharply reduced income from the waste disposal fee has repercussions for the waste disposal fund, the management of which is the responsibility of the Auto & Recycling Foundation. Unfortunately, the lower income, together with the substantial contribution to the national scrappage scheme, makes an increase in the waste disposal fee inevitable in 2010.
In hindsight, the reduction in the waste disposal fee to 15 euros in 2007 was made too soon. The cost reduction resulting from the introduction of the PST facility has taken longer to achieve due to unforeseen delays. In order to make good this shortfall, the waste disposal fee of 45 euros will be reintroduced on 1 July 2010, but will then be reduced to the level that was charged up to and including 2006.
You can read about this diversity of subjects and our plans for the years ahead in detail in this sustainability report. Recycling and sustainability are more than ever at the centre of attention in politics and the private sector. Corporate social responsibility has become an irreversible national and international trend, and its importance will only increase. ARN has the ambition to make an important contribution to it, and will continue developing initiatives in order to make this contribution even more effective and efficient in the years ahead.
We should like to take this opportunity to thank all employees and all external parties who worked with us last year.
Dave Bebelaar Msc
CEO ARN
Arie de Jong MSc
COO ARN
Amsterdam, 18th May 2010
