The Great Lakes region receives $27 billion in planned investment from GM and Intel.

Corporate investments in manufacturing with significant price tags attached have made recent news in three Great Lakes region states: Michigan, Ohio and New York. The attention to Midwest manufacturing should ultimately lead to opportunities for recyclers of many materials.

In the automotive sector, Michigan-based General Motors (GM) announced it would be investing some $7 billion at four different factories in its home state. GM calls it the largest single investment announcement in its history, and much of it is tied to electric vehicle (EV) production.

The investment includes construction of a new Ultium Cells battery cell plant in Lansing, Michigan, and the conversion of GM’s assembly plant in Orion Township, Michigan, to production of the Chevrolet Silverado EV and the electric GMC Sierra.

“Today, we are taking the next step in our continuous work to establish GM’s EV leadership by making investments in our vertically integrated battery production in the U.S., and our North American EV production capacity,” said Mary Barra, GM chair and CEO, in a Jan. 25 statement.

“We are building on the positive consumer response and reservations for our recent EV launches and debuts, including GMC Hummer EV, Cadillac Lyriq, Chevrolet Equinox EV and Chevrolet Silverado EV. Our plan creates the broadest EV portfolio of any automaker and further solidifies our path toward U.S. EV leadership by mid-decade.”

The company also intends to share some funding with the Buffalo, New York, region in the form of a $174 million announced investment in an electrical components plant in Lockport, New York. That investment will be used to renovate the facility and purchase and install new machinery and equipment used in the production of the stator module, which GM calls “a key component in an electric motor.”

Technology also is the watchword in another announcement made in January, this one by California-based Intel. The tech firm has announced it plans to invest more than $20 billion in the construction of two new microchip factories in Ohio.

“The investment will help boost production to meet the surging demand for advanced semiconductors,” says the company. Construction is expected to begin in late 2022 on nearly 1,000 acres of land in Licking County, in central Ohio. Intel calls it “the largest single private-sector investment in Ohio history.”

“Today’s investment marks another significant way Intel is leading the effort to restore United States semiconductor manufacturing leadership,” says Pat Gelsinger, CEO of Intel. “Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech.”

Comments Ohio Governor Mike DeWine, “Today’s announcement is monumental news for the state of Ohio. We are proud that chips – which power the future – will be made in Ohio, by Ohioans.”

Technology firm adds Eric Olsson as area segment manager for plastics.

Germany-based technology and equipment provider Tomra Recycling says it has expanded its North American customer support network by adding Eric C. Olsson as a Texas-based area segment manager – plastics.

The newly created position will be dedicated to strengthening Tomra’s plastics business by offering in-depth sorting expertise for customers with an emphasis on plastic flake recycling, says the company.

In his previous work with global petrochemical firm Braskem, Olsson spent five years in process engineering and sustainable development for the production of polyethylene (PE) and polypropylene (PP) resins. Tomra says he was an integral part of the company’s circular economy team, charged with developing a sustainability strategy and evolving the business model for growth through recycled product offerings.

For Tomra, Olsson will work with plastics companies seeking a more circular model and will help support Tomra’s sales management team in helping customers design the best optical sorting technology configuration to improve process efficiency and recycled plastic product purity.  

“Eric’s education and work history offer a unique combination of in-depth plastics industry experience and a broad background in technical process engineering,” says Ty Rhoad, regional director Americas for Tomra Recycling. “He understands plastic production and recycling processes and will offer customers expert assistance in sorting technology selection. Additionally, his dedication to the circular economy and passion for the recycling industry is in perfect alignment with Tomra’s. We are pleased to have Eric join our growing North American sales, applications and service support team.”

Comments Olsson, who will be based in Austin, Texas, “Tomra Recycling provides the industry superior technologies, process data collection and implementation of deep learning for complex sorting challenges. Joining the TOMRA team puts me closer to the front lines of plastics recycling.”

He continues, “Steps are required to move the needle on industrial ecology and transition from a linear to circular plastics economy, and Tomra is in the position to do this. I’m excited to join a company whose passion for the advancement of the circular economy and closing the loop on plastics is felt throughout every aspect of the business.”

Tomra Recycling, part of Norway-based Systems ASA, designs and manufactures sensor-based sorting technologies for the global recycling and waste management industry. Over 7,400 of its systems have been installed in more than 100 countries worldwide, according to the firm.

The list identifies items that are not reusable, recyclable or compostable, but some critics say it could hinder the circular economy.

The U.S. Plastics Pact, Asheville, North Carolina, has released its "Problematic and Unnecessary Materials List." The list identifies 11 items that are not currently reusable, recyclable or compostable at scale in the U.S. and are not projected to be kept in a closed loop in practice and at scale by 2025.

The organization says the list was developed by U.S. Plastics Pact members—more than 100 businesses, nonprofits and government organizations, or "activators,"—looking to develop guidance on circular alternatives to eliminate the items on the list by 2025.

The U.S. Plastics Pact’s consumer packaged goods, or CPG, retailer and converter activators produce 33 percent of plastic packaging in the U.S. by weight. In 2020, 66 percent of business activators were making individual plans and taking steps to eliminate specific materials, formats and components or to move from nonrecyclable to recyclable package designs, according to the U.S. Plastics Pact.

The U.S. Plastic Pact’s "Problematic and Unnecessary Materials List" is comprised of the following items:

The list applies exclusively to plastic packaging. Medical plastics used in clinical, hospital and related laboratory and research settings are not included. Definitions used in the criteria are derived from the Ellen MacArthur Foundation Global commitment criteria, which provides the framework for the U.S. Pact. 

“The elimination of these problematic and unnecessary materials will enable advancements in circular package design, increase opportunities for recovery and enhance the quality of recycled content available for manufacturers,” says Emily Tipaldo, executive director of the Pact. 

The Pact says the materials on the list also met one or more of the following concerns:

While the list was published with the help of the Pact’s members, some critics question the validity of the list and identification process. According to the American Chemistry Council (ACC), Washington, the list lacks a transparent third-party, data-driven and scientific approach and is instead rooted in ideology. The ACC also suggests the list will do the opposite of its intended purpose.

“The list of plastic materials [the Pact] suggests to be eliminated by 2025 will only hinder the acceleration of a circular economy, slow progress toward a lower-carbon future and reduce our ability to use greater amounts of recycled material in plastic packaging,” says Joshua Baca, the vice president of plastics for the ACC. 

According to the ACC, recent advancements in recycling technology have made polystyrene among the most recyclable plastics, and the infrastructure needed to more widely recycle polystyrene products is expanding rapidly. Some of these technologies include advanced and mechanical recycling, dissolution, and depolymerization. Importantly, polystyrene is easily sortable and can be recycled by itself or as a feedstock for advanced recycling (i.e., pyrolysis and depolymerization) technologies, along with polyethylene and polypropylene.

Bacca says the Pact’s recommendations are likely to increase food waste, promote several materials with a higher carbon footprint than plastics and do little to achieve the plastics value chain’s sustainability goals. The goals include requiring all plastic packaging to have at least 30 percent recycled plastic by 2030.

Instead, the ACC says it hopes the two will partner together to leverage the ACC’s expertise and the extensive work done to achieve a more circular economy for all materials by scaling the growth of innovative recycling technologies.

Other critics include the Plastics Industry Association, Washington. The organization says the Pact is restricting businesses' choices in packaging.

"It’s a lot easier to make lists than it is to live with the unintended consequences of eliminating certain types of products," says Tony Radoszewski, president and CEO of the association. "Product packaging is designed with specific functions or applications in mind, even if those aren’t immediately obvious to the end customer. Banning products can result in using alternatives that have much greater impact on the environment."

However, the Pact says it stands with the more than 100 businesses, nonprofit and government organizations that did participate and worked together over a year to develop the list. The organization also points out that it lists the sources used to collect its data here.

The company says these milestones are part of its sustainability targets and commitment to close the loop by making its packaging products reusable or recyclable by 2035.

Dow, a global materials science company based in Midland, Michigan, and Liby, a laundry brand based in Shanghai have announced three milestones that promote a circular economy in China: 

The company says these achievements are part of its sustainability targets and commitment to close the loop by making 100 percent of its packaging products reusable or recyclable by 2035. Dow’s efforts also support China’s 14th five-year plan to stop plastic scrap from entering the environment.

“We are delighted to collaborate with industry leader Liby, which shares the same vision as Dow to accelerate the move from linear to the circular economy,” says Bambang Candra, Asia Pacific commercial vice president of Dow Packaging and Specialty Plastics. “These accomplishments are amongst the many that reflect our commitment to capture the full value of plastic and keep waste out of the environment, and we look forward to celebrating more milestones with our partners to achieve a sustainable future together.” 

The partnership between Dow and Liby continues to expand with several ongoing recyclable packaging projects in the pipeline, including another PCR resin application that will be announced soon. 

“The use of recyclable packaging and PCR resins is one of Liby’s sustainability focuses, which also supports China’s peak emissions and carbon-neutral goals,” says Liping Zhang, Liby chief scientist. “We are proud to be working with Dow to achieve a circular economy and to stop the plastic scrap in China.”

The company posts record steel, steel fabrication and metals recycling segment earnings in 2021.

Fort Wayne, Indiana-based electric arc furnace (EAF) steelmaker Steel Dynamics Inc. (SDI) has reported record results for the fourth quarter of 2021 and for the full year. Its quarterly net sales totaled $5.3 billion, while its net income was $1.1 billion, or $5.49 per diluted share. For the year, SDI’s net sales totaled $18.4 billion, while operating income was $4.3 billion and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $4.6 billion. The company anticipated record performance for the quarter when it issued earnings guidance in December of last year. 

In the third quarter of 2021, SDI’s earnings were $4.85 per diluted share, while fourth-quarter 2020 earnings were 89 cents per diluted share.

Mark D. Millett, SDI chairman and CEO, says, "Numerous individual operating and financial records were attained during the year. Across the company, our teams achieved best-in-class performance while keeping each other healthy and safe.”

He credits the company’s employees for its record annual cash flow from operations of $2.2 billion. SDI ended 2021 with liquidity in excess of $2.4 billion despite investing in organic growth. 

"Domestic steel demand was strong throughout the year, supported most significantly by the construction, automotive and industrial sectors," Millett says. "Customer steel inventories also remained historically low as steel supply was not sufficient to meet robust demand requirements during much of the year. This strong market environment drove significantly higher realized steel selling values, resulting in meaningful steel metal spread expansion. In combination with the symbiotic relationships among our three primary operating platforms, we achieved record annual financial and operational performance. Our steel operations achieved record annual 2021 shipments of 11.2 million tons and record operating income of $4.4 billion. Our metals recycling and steel fabrication operations also achieved record 2021 annual operating income of $195 million and $365 million, respectively."

Fourth-quarter 2021 operating income for the company's steel operations was a record $1.4 billion, aligned with sequential third-quarter results, attributed to meaningful metal spread expansion across the entire steel platform. Coupled with flat scrap input costs, record flat-roll and strong long product steel selling values more than offset seasonally lower steel shipments. The average external product selling price for SDI’s steel operations increased $112 sequentially to $1,662 per ton. The average ferrous scrap cost per ton melted at the company's steel mills remained static at $490 per ton.

Fourth-quarter OmniSource operating income, the company's metals recycling division, remained strong at $44 million based on improved metal margins offsetting lower ferrous shipments, SDI says. Many domestic steel mills had planned maintenance outages throughout the fourth quarter, which lowered ferrous scrap demand. Ferrous scrap prices moderated in September and October, recovering to an extent in the latter half of the fourth quarter, resulting in modestly lower average realized selling values, the company notes.

Its steel fabrication operations reported record operating income of $238 million in the fourth quarter, more than two-and-a-half times higher than sequential third-quarter results. Supported by strong shipments, earnings increased as pricing increased $986 per ton, more than offsetting the continued increase in average steel input costs, the company says. 

SDI awarded performance-based special compensation of approximately $21 million to all eligible nonexecutive team members in recognition of its record annual performance. The company also contributed $10 million to its charitable foundation during the fourth quarter.

Annual 2021 record net sales increased 92 percent and operating income increased more than four times to a record $4.3 billion when compared with 2020, SDI notes. The company attributes its higher earnings to steel metal spread expansion, as significantly higher average steel selling values more than offset higher average ferrous scrap costs across the steel platform, especially within its flat-roll operations. Compared with 2020, the average 2021 external product selling price for the company's steel operations increased $611 to $1,381 per ton. The average 2021 ferrous scrap cost per ton melted at SDI’s steel mills increased $179 to $447 per ton.

"We believe the market dynamics are in place for domestic steel consumption to further increase in 2022 when compared to 2021," Millett says. "Based on domestic steel demand fundamentals and customer confidence, we believe North American steel consumption will experience steady growth, supported by the construction, automotive and industrial sectors. Our Structural and Rail Division and steel fabrication operations provide us with more specific insight into the non-residential construction sector, which is the single largest domestic steel-consuming sector. Based on our record steel fabrication order backlog extending through most of 2022, combined with the continued strength of order activity and broad customer optimism, we believe construction will remain strong in the coming year. In addition, we believe the more severe supply chain challenges within the North American automotive sector will abate during 2022, supporting stronger production for vehicles that are in high demand and short supply.”

Millett acknowledges challenges with the start-up of its new EAF steel mill in Sinton, Texas. "We had planned to be further along with commissioning the hot side of the steel mill, but supply-chain and COVID challenges delayed the project by several weeks.”

However, he adds that the rolling mill and two value-added finishing lines were successfully commissioned “ahead of the melting and casting operations in preparation of full operations commencing before the end of February 2022.”

Millett says SDI’s Sinton mill expects shipments to be roughly 2 million tons in 2022.