ARN Auto Recycling
More efficiency and growing
market share
ARN Auto Recycling is responsible for the attainment of the statutory recycling objective of 95% in 2015. ARN has the ambition to do this in an environmentally sound and efficient manner. ARN Auto Recycling intends to achieve this objective by recycling the greatest possible proportion of Dutch end-of-life vehicles. To this end, ARN has set up a monitoring system that records and checks all steps in the chain. The system provides verifiable recycling data for our clients and government.
In 2009, ARN Auto Recycling concentrated primarily on efficiency measures in the chain and on growing its market share end-of-life vehicles. Besides delivering added value to companies that already collaborate with ARN, tackling unfair competition is a major spearhead in increasing market share.
Efficiency measures in the chain
Tender for processing and collection companies
In 2009 ARN prepared a tender for both processing companies and collection companies. The tender for processing companies resulted in cutting the costs of material processing.
The tender for collection companies resulted in a better organized chain. This delivered both cost savings and less impact on the environment.
Brake fluid and refrigerants
The removal of brake fluid has been optimized by using bulk trailers. This has reduced the number of transport movements and cut collection charges.
The refrigerant costs have been cut by employing a different routing in the processing company.
Drainage installations at dismantling companies
ARN has installed drainage installations at affiliated car dismantling companies for the efficient and environmentally sound removal of liquids from end-of-life vehicles. These systems are removed from companies that have terminated their contract with ARN. Six systems were dismantled in 2009; two of these were subsequently installed at car dismantling companies that had recently become affiliated to ARN. The installations are the property of ARN and ARN therefore services and maintains them. ARN is devoting a lot of energy to system improvements, in order to enhance environmental performance and minimize maintenance costs.
Sensors in liquid tanks
Recovered liquids are stored in tanks. The collection of these liquids can be optimized by installing remote level sensors. The collection company can define an optimal route on the basis of this information. A sensor that employs radar technology was selected for detecting the levels in the liquid tanks. Many of the tanks were equipped with these sensors in 2009. Collection will take place on the basis of this technology from 1 January 2010 onwards, and will lead to economic and environmental benefits.
Shredders
ARN collaborates with certified shredder companies. The dismantling performance of car dismantling companies is checked at the shredders. The vehicles received by the shredders are registered via an extranet, which makes monitoring end-of-life vehicles and checking the chain simpler and more efficient.
Growing market share
In 2009, ARN processed 87.5% of all end-of-life vehicles in the Netherlands. ARN Auto Recycling works with a network of nearly 300 chain partners to process end-of-life vehicles in an environmentally sound way. Although there are some good companies in the remaining 12.5% of the market, many do not deal with vehicles in an environmentally sound way. ARN would like to welcome the former companies as partners and – together with industry players – bring about an improved situation in the latter companies.
The national scrappage scheme
Vehicles that were registered in 2009 via the DNS (national scrappage scheme) were checked and scrapped in an environmentally sound way at certified companies. 248 car dismantling companies participated in the DNS. In 2009 these companies dismantled 52,185 vehicles under the DNS. Of all the vehicles concerned, 99% were cars and 1% were commercial vehicles with a gross vehicle weight of less than 3,500 kg. Of the scrappage scheme vehicles, 88% used petrol, 11% diesel and 1% lpg. ARN Auto Recycling is making various checks to verify whether the contracts signed by the car dismantling companies under the DNS are being fulfilled.
Abandoned vehicles
Rijkswaterstaat (the Directorate-General for Public Works and Water Management) is looking for an environmentally friendly solution to the problem of end-of-life vehicles that are abandoned on motorways. ARN has entered into an alliance with Rijkswaterstaat under which vehicles with a low value are offered to the ARN network of car dismantling companies. ARN ensures that the vehicles are dismantled and destroyed. Contracts have been entered into with a number of dismantling companies in the network.
The business scan for car dismantlers
A professional car dismantling sector is a prerequisite for environmentally friendly recycling. Dismantling companies are having to adapt to changes in the market and in the demand for and supply of more complex vehicles. Further professionalization and sound business practices are necessary for survival. ARN has therefore developed a business scan, which in 2009 was applied to 25 dismantling companies. The scan produces recommendations about operational management and how companies can fine-tune their strategy in order to achieve their objectives. The results of the scans are being used to develop a benchmark against which companies will be able to measure themselves. This benchmark will also give ARN insight into market trends.
Tackling unfair competition
As part of its routine activities, ARN flags environmental offences, fraud and vehicle-related crime. Such practices impede ARN in discharging its responsibilities and it therefore has an interest in tackling them. This is also in the interest of companies that obey the rules and of various government and industry organizations. The problem can be tackled more effectively if the chain takes joint action.
Tackling end-of-life vehicles outside the ARN system
After end-of-life vehicles have been stripped of ARN materials, they are taken to authorized shredders, where they are destroyed. In the Netherlands it is not permitted to break up end-of-life vehicles. In order to monitor this process, the transport of end-of-life vehicles must be reported to the national waste reporting centre, quoting specific EURAL codes. Consultation with chain partners has revealed that some Dutch end-of-life vehicles are reported using incorrect EURAL codes. It is consequently not possible to check what happens to these vehicles. This observation resulted in the provinces issuing a formal warning to the companies concerned. The responsibility for accurate reporting lies with the party disposing of the waste, in this case the car dismantling company.
Tackling improper reporting
In recent years ARN has made efforts to grow its market share. Despite these efforts, our market share dropped from 89% in 2004 to 87.5% in 2009. Much of this can be explained by the increase in illegal dismantling, for example an end-of-life vehicle is reported as being exported, whereas it remains in the Netherlands, or is reported for private scrappage. In many cases these vehicles go not to the statutorily obligatory shredders but to blast furnaces in other countries via breakers. When vehicles are disposed of in this way, no checks are carried out in regard to environmental legislation. ARN notes that these practices are becoming more widespread. When ARN observes specific cases, it notifies the LIV (national vehicle crime information centre), which is an alliance of the RDW (road traffic agency), the KLPD (Netherlands national police agency) and the VBV (insurance bureau for vehicle crime). The LIV uses this information to tackle abuse.
In 2009 ARN became an associate member of the AVC (foundation for tackling vehicle crime). Many parties are working together in the AVC to reduce vehicle crime.
Stricter enforcement
Although the vehicle dismantling sector operates under new, stricter rules, the business community reports that provincial regulators are not always clear in their approach, which creates uncertainty and a greater regulatory burden. The sector-focused approach launched by the government should rectify this unfortunate situation.
The enforcement consultation that ARN has been conducting since 1999 involves representatives of all provincial regulators, stiba, rdw, liv and the inspecting agencies. This consultation owes its success to the unique public-private partnership and has served as an example for the composition of other branches.
In August 2009 the enforcement consultation became the sector team consultation. After ten years, ARN handed over the chair to an official from the Ministry of Housing, Spatial Planning and the Environment, who is also tasked as sector team manager. The sectorfocused approach makes it easier to share knowledge within the team. In the near future the sector team will concentrate primarily on tackling illegal activities and developing a uniform model for a mass balance of a vehicle dismantling company.
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ARN considers the sector team to be a very important weapon in tackling unfair competition.
Outlook for 2010
Initiating a new collection method
The method for collecting a substantial part of ARN materials will change as soon as the PST facility becomes operational. During the first half of 2010, ARN will be investigating the best method for collecting materials in the new situation. This may involve restructuring the packaging area and/or amending the master contracts with collecting companies.
Dismantling companies’ extranet
The dismantling companies’ extranet is scheduled to go live on 1 July 2010. This extranet will provide a system for registering and forwarding collected materials. A digital system has two big advantages: much less paperwork at ARN and the dismantling companies, and a significantly shorter turnaround time for payments.
Business scan
ARN is promoting the further professionalization of the sector. In 2010, ARN will continue to support new participants in the ARN business scan with a contribution towards the costs.
Drainage installation sensors
By 1 July 2010 at the latest it will be possible to read levels remotely at all locations that have a drainage installation, thus enabling the collection company to make optimal logistics plans.
