Contents

• Foreword
• 1. Vision and policy
• 2. Profile and organization
• 3. ARN Recycling
• 4. ARN Auto Recycling
• 5. ARN Recycling Services
• 6. ARN Advisory
• 7. ARN Management Plan
• Appendix
  • Financial report
  • Notes to the 2010 financial report
  • Vehicle parc developments
  • Terms and abbreviations
  • Assurance report

ARN Advisory

Knowledge and expertise can be applied in a broad field

Originating from ARN’s Innovation department, ARN Advisory has been functioning as a separate operating company since the end of 2009. ARN Advisory is ARN’s centre of expertise. It applies knowledge from the entire organization during the performance of both internal and external advisory assignments in the field of environmental management and recycling. This mainly relates to issues concerning the reuse of raw materials, auxiliary materials and parts. Customers are companies and organizations from the private sector and public authorities. There is also a lot of interest in the knowledge and expertise of ARN from other countries.

ARN Advisory plays a key role in ARN’s aim to serve the entire mobility chain with its knowledge and not only to be active at the end of the life cycle of a car. In addition, its expertise can also be put to good use for mobility products other than cars.

The knowledge gathered by ARN Advisory is divided into four areas:

• Processing, for the recycling of mobility products.
• Chain management, logistical aspects of the road travelled by a vehicle after it is discarded up to and including recycling.
• Legislation & regulations.
• Statistics and information products.

Ecotest

Together with FFact, an environmental consulting firm, ARN Advisory developed a model to calculate the environmental impact of the waste chain in the automotive industry in 2010. The aim was to gain insight into the importance of recycling, also with a view to the commissioning of the PST facility in 2011 and the feasibility of 95 percent recycling in 2015. The central question was: is the assumption correct that car recycling results in a lower CO2 footprint?

This has resulted in Ecotest, a decision model that facilitates a comparison of policy choices with the aid of clear indicators in the field of ecology (CO2 footprint, toxicity, etc.), recycling (resource conservation) and economy (costs). In 2010, this test was used to assess the CO2 emissions in the car recycling chain. The reduction of CO2 that can be attributed to the activities of ARN appears to be consistent with the approximately 10% recycling activities performed by ARN in the chain. The metal recovered by shredders accounts for the largest share of the savings. In addition, the recycling of plastics via the PST route makes a significant contribution.

By comparing various processing alternatives in advance, the model can also be used to examine for the PST facility where the greatest benefit can be achieved in terms of CO2 emissions and recycling rates. Calculation results can be used to produce a higher quality of materials and find better sales markets. This is possible because in addition to determining the highest recycling rate, the recycling alternative that produces the highest CO2 gains for the lowest costs can also be calculated.

The model has also created new insights into the effectiveness of particular processes in the field of CO2. This helps assess whether material recycling in a given situation has added value compared to incineration with energy recovery.

Talks have been initiated between ARN Advisory and FFact about using the Ecotest method to determine the environmental impact of other chains.

Shredder test 2010

In August and September 2010, ARN Advisory performed a shredder test with mass balances being prepared during the entire recycling process of end-oflife vehicles. Regular shredder tests are required for the annual reporting to the Ministry of Infrastructure and Environment (formerly Ministry of Housing, Spatial Planning and the Environment). An additional reason for carrying out a shredder test in 2010 was to obtain a ‘baseline measurement’ before the PST facility is brought into service in 2011.

A shredder test is mainly intended to test the actual recycling rate of body shells since shredder plants will normally process end-of-life vehicles together with other ‘welfare waste’. ARN has contracted a shredder plant to process the discarded vehicles purchased in advance by ARN after they have been thoroughly stripped down. The quantity of end-of-life vehicles and composition of the batch was representative of the Dutch vehicle fleet.

The results of the shredder test show that the recycling rate was easily achieved in 2010. The increase compared to 2009 was mainly caused by an enormous increase in the thermal treatment of shredder waste, which was made possible by the r-1 status of some waste incineration plants in the Netherlands. The results of the shredder test held in 2010 are included in calculation of the recycling rate in 2010.

Two-wheelers

In 2010, ARN Advisory held discussions with government bodies, companies and trade organizations in the two-wheeler sector in order to apply knowledge of recycling systems in this sector. Bicycle manufacturers have indicated that they want to wait with the introduction of a recycling system. Manufacturers of mopeds and motorized bicycles have already expressed interest in establishing a system. On behalf of the RAI(car manufacturers and importers organization) and in cooperation with BOVAG, ARN Advisory will start to set up a nationwide recycling system for mopeds and motorized bicycles on 1 January 2011. This system should be fully functioning in the third quarter of 2011. Motorcycles requiring a Dutch driving licence category A remain outside the system for the time being, but manufacturers of this class of motorized two-wheelers are keeping an eye on the positive developments in order to have the option of joining in at a later date.

Important reasons for setting up a recycling system for motorized two-wheelers are: social responsibility in the environmental field, combating crime and cleaning up the moped fleet. All parties active in the moped and motorized bicycle sector are free to participate in the scheme, since unlike the car industry there is no legal obligation to participate. The sector represents a significant recycling market with approximately one hundred thousand new mopeds coming on the road every year and an estimated twenty thousand mopeds and motorized bicycles being discarded.

Knowledge sharing

An important activity of ARN Advisory is knowledge sharing. This includes giving presentations, publishing articles and participating in educational projects. Knowledge sharing also contributes to an expansion of the ARN network.

ARN Advisory organized two seminars in 2010:

1. Design for Recycling, March 24, 2010, Amsterdam. The main question was how to bring design and recycling closer together. The automotive industry was compared to the electronics industry and the packaging industry. The conclusion was that each industry has its own characteristics and legislation. Thus, in the automotive industry the user phase is much more important than the recycling phase. In the electronics industry and the packaging industry, the recycling phase is more important and the influence of retail sector, which demands sustainable consumer products, is much greater.
2. The leakage in recycling, October 27, 2010, Amsterdam. Leakage in the recycling phase has an adverse effect on the responsibility of both car manufacturers and importers for the management of the products they introduce onto the market, also in the waste phase. The conclusion was that collaboration in the chain is essential to combat the leakage flows.

Shanghai, Nizhny Novgrorod and Quebec

At a symposium organized by the Dutch road traffic agency rdw in Shanghai, ARN Advisory gave a presentation on the car chain in the Netherlands and compared this with the Chinese automotive industry and the role of the Chinese government in the automotive sector. ARN Advisory also attended a round table conference on car recycling in Québec, Canada. Furthermore, ARN Advisory travelled to the Russian Federation with other Dutch companies within the framework of a trade mission organized by the Dutch government. The destination was the Nizhny Novgorod region where discussions were held with Russian companies in the automotive industry.

Developments in 2010

• First year of ARN Advisory as an independent operating company.
• Together with FFact developed a CO2 footprint for the waste chain in the automobile industry.
• Shredder test performed.
• Provided support during the construction of the PST facility.
• Held discussions with the trade associations of the manufacturers of bicycles and of mopeds and motorized bicycles about the possibility of introducing the ARN recycling system.

Outlook for 2011

• Further professionalization of the organization as an independent operating company.
• Working on the further advancement of the professional network.
• Offer a method for determining CO2 footprint to other chains.
• Further support for PST facility.
• Establish a nationwide recycling system for mopeds and motorized bicycles in collaboration with car manufacturers and importers association rai and bovag.
• Give presentation at the 11th International Automobile Recycling Congress IARC 2011 in Budapest (March).