The aluminium beverage can going full circle - Recycling aluminium
1. THE ALUMINIUM BEVERAGE CAN
GOING FULL CIRCLE
Canadean Beverage Packaging
Congress 2015
Brussels, October 28, 2015
Catherine Athènes,
Constellium Sustainability Council
Leader
2. Agenda
2
Constellium and sustainability
Life Cycle Assessment
Recycling is more than a driver for sustainability
What matters is End-of-life Recycling
Improving sorting and recycling by working together
3. Constellium: a long and rich experience in aluminium
3
1855
Pechiney
1888
Alusuisse
1902
Alcan
2000
Alcan Aluminium Limited
merges with Algroup/
Alusuisse
2003
Alcan Inc. acquires
Pechiney
2007
Rio Tinto
acquires Alcan
More than a century of growth
May 2013
Constellium commences
trading on the New York Stock
Exchange and NYSE Euronext
Paris
May 2011
Alcan Engineered
Products is renamed
to Constellium
January 2011
Rio Tinto sells 51%
of Alcan Engineered
Products to Apollo,
10% to FSI and keeps the
remaining 39% stake
January 2015
Constellium acquires Wise
Metals
4. Constellium is a leader in innovative aluminium-based
solutions
4
Over 10,000 employees*
€4.7 billion in sales (incl. €997 million from Wise
Metals)*
22 manufacturing sites*
C-TEC, our world-class Technology Center
Headquartered in Amsterdam, The Netherlands.
Corporate offices in Paris, France, Zurich, Switzerland and
New York, USA
*ThecombinedunauditedproformarevenueinformationfortheyearendedDecember31,2014
presentedgiveseffecttotheacquisitionofWiseasifithadoccurredonJanuary1,2014.Thisinformationis
presentedforinformationpurposesonlyanddoesnotpurporttorepresentwhatConstelliumactual
revenueswouldhavebeenhadtheacquisitionoccurredonthedateindicated,norisitnecessarilyindicative
offutureresults.
2014 pro forma figures including Wise Metals acquisition
5. Structured into 3 Business Units
5
Aerospace and Transportation
€ 1.197 billion in revenues
#1 worldwide for aerospace plates
#1 in the USA for large coils
Packaging and Automotive Rolled Products
€ 2.573* billion in revenues
#1 worldwide in closure stock
#2 in Europe for can body stock and #3 in North America
Major player in auto body sheet: #4 worldwide
Automotive Structures and Industry
€ 921 million in revenues
#1 in Europe for large profiles
#1 in Europe for hard alloy extrusions
#2 worldwide in crash management systems
* The combined unaudited pro forma revenue information for the year ended December 31, 2014 presented above gives effect to the acquisition of Wise as if it had occurred on January 1, 2014. This
information is presented for information purposes only and does not purport to represent what Constellium actual revenues would have been had the acquisition occurred on the date indicated, nor is it
necessarily indicative of future results.
6. C-TEC: a world-class technology center
fully dedicated to innovation
6
Unique
rapid prototyping
capabilities, simulation tools
and advanced joining
technologies such as
friction stir welding
Over 150patent families and trademarks
22Nationalities
223Employees
58PhDs
93Engineers
including
7. Our sustainability program: Altogether more sustainable,
4 objectives, 12 targets
OBJECTIVES
PRODUCTS
TARGETS PROGRESS
PEOPLE
OPERATIONS
GOVERNANCE
■ 75% beverage can recycling rate in Europe by 2015
■ All major new innovation projects through LCA by 2015
■ 10% of sales from innovative products by 2015
■ 60% improvement in recordable cases by 2014
■ No serious injuries in 2015
■ 50% improvement in employee contributions by 2014
■ 75% participation rate in the employee survey in 2014
■ 10% decrease in energy consumption per processed unit by 2015
■ Major European sites reaching ISO 50001 certification by 2015
■ 75% total landfill reduction by 2020
■ 100% of key suppliers joining the UNGC by 2015
■ 6-point improvement in the employee satisfaction rate in 2014
Developing, producing and selling
sustainable products: meeting
needs and reducing the environ-
mental impact of our customers
now and in the future.
Ensuring our employees are safe,
skilled and motivated, with ethical
practices, and that they comply
with regulations.
minimizing the environmental
impact of all our operations
in the following key areas:
energy, water and waste.
Subscribing to the highest levels
of transparency and ensuring a
responsible supply chain.
7
Needs improvement On trackMissedAchieved
8. Agenda
8
Constellium and sustainability
Life Cycle Assessment
Recycling is more than a driver for sustainability
What matters is End-of-life Recycling
Improving sorting and recycling by working together
9. Life-Cycle Assessment (LCA) is key to evaluating the
environmental impact of aluminium products
Life-Cycle Assesment (LCA) is a
technique to assess the
environmental impacts of a given
product throughout its life, from
raw material extraction for the
original manufacturing process
through to its usage and end-of-
life.
It is a key tool for aluminium
which has impacts upstream and
brings benefits downstream.
9
We performed third-party-
verified LCA-done by Quantis-
on an aluminium beverage can.
10. Focus on Greenhouse Gas Emissions
How does it work for a beverage can? (per T)
CO2 emissions
0.6 t
CO2 emissions
2-4 t
CO2 emissions
0 t
CO2 emissions
0.5 t
8,5 t Gap
10
CO2 emissions / t of primary alu produced
9 t
11. 0
20
40
60
80
100
120
140
0% 20% 40% 60% 80% 100%
Climate change [g CO2 eq. / can]
Verified LCA for an aluminium beverage can: Recycling
is key!
Life Cycle Assessments 28/10/2015 11
European Aluminium
average primary
Even better with
higher recycling rates
Actual result for
2012 recycling rate-
69,5%
1. 69.5% is the EU+EFTA average recycling rate for 2012 (most recently published).
2. Germany, Belgium, Luxembourg, Sweden, Norway, Finland and Switzerland all perform at 90% or
higher recycling rates, according to the most recent data currently available (2012) – press release from
European Aluminium,March 16, 2015.
Aluminium Beverage Can Recycling rate
gCO2eq/can
Target MPE
reycling rate
80% in 2020
12. Agenda
12
Constellium and sustainability
Life Cycle Assessment
Recycling is more than a driver for sustainability
What matters is End-of-life Recycling
Improving scrap collection and sorting by working together
13. Recycling aluminium makes economic and
environmental sense
Recycling is a business imperative due to aluminium’s intrinsic economic
value as scrap.
Aluminium can be endlessly melted down and recast with no loss of its
inherent properties or downgrade in material integrity.
=>No difference between aluminium made of scrap or virgin material!
Creating new metal from recycled aluminium only requires 5% of the
energy needed to produce primary aluminium from bauxite ore.
=> Unique position of aluminium for primary versus secondary source
Once collected and sorted, aluminium can be recycled and reused, avoiding
the use of primary metal and thus saving CO2 emissions.
13
14. Aluminium, a permanent material
Permanent materials are not consumed, they are merely used.
Permanent materials are moved from the ground or manufactured and used
in a range of applications and then “lent” to other applications after their
previous use.
They can be recycled, over and over again, without loss of properties.
14
Comparison with other materials
■ Plastic and paper recycling damages
molecules / fibres
Hence lowering properties
These materials cannot be
infinitely recycled.
■ Glass can also be infinitely recycled, even
though it can also lose some properties
(colour, transparency).
Constellium is part of Metal
Packaging Europe which has
developed the permanent
material concept.
15. Agenda
15
Constellium and sustainability
Life Cycle Assessment
Recycling is more than a driver for sustainability
What matters is End-of-life Recycling
Improving scrap collection and sorting by working together
16. Recycling takes place at all three stages of the
aluminium life-cycle. End-of-life recycling is key
Internal process scrap
created during transformation.
Customer scrap produced
during stamping, milling and
other processes
Recycling the scrap produced
during all production stages is
essential due to its cleanliness
and value. As it goes throughout
the complete production flow, this
runaround scrap does not replace
primary metal and therefore its
usage does not avoid CO2
emissions.
16
The end-of-life scrap from products
containing aluminium such as Used
Beverage Cans is a clear substitute for
primary metal, especially when recycling
it requires only 5% of the energy
otherwise used to produce primary
metal.
End-of-life recycling therefore delivers
clear CO2 savings.
End-of-life recycling is the most
efficient way to significantly
improve the CO2 footprint of
aluminium beverage cans.
Process scrap End-of-life scrap
17. The recycled content in a given product does not
reflect its environmental performance. Here is why.
1 2 3Recycled content
includes industry
process scrap and
the part of end of life
scrap versus process
scrap is rarely or never
mentioned!
Recycled content can
only work if there is
enough available
scrap, which is
essentially dependent
on scrap produced
many years ago
Increasing recycled
content of a product is
highly likely to happen
by decreasing the
recycled content of
another one!
17
18. Is increasing process scrap intake good for the planet?
NO! What matters is end of life scrap!
Metal
sourcing
Rolling/
Remelting
Can Mfg
Reference
Recycled
Content
20% process
scrap
recycled
content
1.0 1.0
Metal
sourcing
Rolling/
Remelting
Can Mfg
Higher
Recycled
Content
40% process
scrap
recycled
content
1.0 1.67 1.0
0.67
Sameoutput
More scrap generated more
material to be remelted more
energy used –
more recycled content
0.25
1.25
When Recycled Content includes process scrap, it can be
seen as a metrics for industrial inefficiencies with no
environmental value.
1
18
19. End-of-life scrap intake is limited by its availability
19
75% of the aluminium
ever produced is still
in use
Due to the long lifespan of most (especially
larger) aluminium applications such as
buildings and transport vehicles, the available
quantity of end-of-life aluminium scrap
today is limited to what was put on the
market many years ago.
Calling for higher recycled
content will not change
scrap availability
Aluminiumintperyear
0
2 000 000
4 000 000
6 000 000
8 000 000
10 000 000
12 000 000
14 000 000
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013
Average product life ≈ 20 years
Available for
recycling now
20 years ago
production
2
20. Producer 1
Increasing the recycled content of one product may
happen by decreasing the recycled content of another
20
Producer 2VS.
Products 1 Products 2
3
21. In which case higher recycled content brings no
environmental benefit.
VS.
Average recycled content for every
product
Limited availability: one product getting
more doesn’t change the overall
environmental impacts, as others get
less
Can 1 Can 2 Can 3 Can 1 Can 2 Can 3
21
3
22. Recycled content may be a good marketing incentive to
recycle paper or plastic but is not suited for metal.
Keeps same properties after recycling
Cannot be distinguished from virgin metal
Infinitely recyclable!
Has value which pays for recycling
■ Loses its properties after recycling
■ Low value of scrap/high cost of recycling
Recycled content provides an incentive to
recycle and is not limited by unsorted
scrap availability
Recycled content is not the right incentive
22
Paper & Plastic Metal
23. For packaging, good progress has
been made, but still more is needed:
23
What really matters is END-OF-LIFE RECYCLING
69,5%
Beverage can
recycling rate
End of life recyling of aluminium
products is already very good: But more
needs to be done in terms of quality.
95%
Recycling in building
95%
recycling in
automotive
and transportation
25%
Beverage can
recycling rate
1992
2012
24. Agenda
24
Constellium and sustainability
Life Cycle Assessment
Recycling is more than a driver for sustainability
What matters is End-of-life Recycling
Improving scrap collection and sorting by working together
25. Constellium aims to boost the overall sustainability
of our industry through end-of-life recycling
We make sure that as much aluminium as possible is re-used
at the end of the life of a product
25
26. Why improving collection and sorting?
To improve recycling practices, the focus must shift to improving the
recycled scrap collection and sorting process as a whole.
Once collected and sorted, scrap can be easily used in one product or
another.
Good sorting enables an alloy to be recycled in the same alloy category,
thus avoiding dilution or down-cycling.
This would increase the overall volume and quality of the available
content, rather than concentrating on the content of individual products.
At Constellium, we believe that we can only achieve this through
collaboration and partnership with all relevant stakeholders, within and
outside the aluminium industry.
26
28. Joint recycling programs
Sustainability training-ON 28
The ONLY way to improve the CO2 footprint of
aluminium products through recycling is to increase
end-of-life recycling through industry-led programs
and cooperation with adequate organizations.
Every Can Counts
MPE
CR3/ IRT M2P
EA/IAI
Aluminium Stewardship
Initiative
Canibal
(Collection Machine)
29. Thank you!
29
We are
Constellium.
We are a global leader
in aluminium solutions whose
business is to materialize today’s
and tomorrow’s ideas.
For us, aluminium is more
than a metal.
it is part of the solution for
tomorrow’s lighter, faster
economy. Abundant, endlessly
recyclable and reusable,
aluminium’s unique properties
mean that, together with our
partners, we can shape a future
of infinite possibilities