sustainability report 2011

arn is in charge of the recycling of end-of-life vehicles in the Netherlands.arn Sustainability Report 2011

focus on sustainabilityFor the production of new goods, it is essential that the raw materials comply with certain quality requirements. This also applies to materials produced from waste. Compliance with the customer’s specifica-tions is an absolute requirement for our pst facility. All material flows produced in the facility are therefore analysed in our own laboratory, both chemically and in terms of their composition.

On behalf of the manufacturers, arn is responsible for achieving 95% recycling of cars by 2015. The pst facility plays an essential role in achieving that recycling percentage. With a focus on continued progress, arn is helping to ensure a sustainable future.

ContentsForeword 2Vision and policy

arn makes sustainability measurable 4Profile and organization

‘Tiel’ creates new dynamism 8arn Auto Recycling

Focus on tackling unfair competition 12arn Recycling

Integration in the recycling market 22arn Recycling Services

Expansion of services for sustainability 26arn Advisory

Distribute knowledge in the market 30Appendix Financial report 2011 Auto & Recycling Foundation 36

Goods flow management procedures 38 Financial report 2011 arn Management Plan car batteries 39 Vehicle fleet development 40 Independent assurance report 44

ColophonPublished by Auto & Recycling Foundation and arn, P.O. Box 12252, 1100 AG Amsterdam zo.Copy VanderHeijden Communications: Yvonne van der Heijden. arn: Janet Kes. Total Identity: Sieds de Boer, Yvonne van de Wal. Concept and design Total Identity: Sieds de Boer, Arjen Firet, Jeannette Kaptein, Anneloes Logjes, Annemarie van Noort, Yvonne van de Wal, Julius van der Woude. Photography Aatjan Renders Fotografie. Foto Focus: Jack Tillmanns. Hollandse Hoogte: Harald Braun Illustrations Unger-Kisman: Thijs Unger. Print Aeroprint. Paper: Revive and Cocoon, 100% fsc recycled out of pulp; ecf.

Facts. Figures. Focus.The sustainability report from arn con-tains fact and figures that reveal the actual results achieved by the organisation. This is as it should be. However, arn is more than merely the sum of the bare figures. arn is a organisation bubbling with ambition and energy, with employees and partners striving to achieve sustainability. It is specifically that focus that represents a special story, and a vision arn would like to share with you.

The 2011 sustainibility report is available in Dutch and English. Should different interpretations arise, the Dutch language version prevails.

1

Arie de JongManaging director arn

Amsterdam Zuidoost, 24th May 2012

developed by FFact and arn Advisory, will also identify better options in terms of sustainability. In 2012, arn will devote special attention to its relationship with the car dismantling companies by improving communication with them. The disposal fee will remain at 45 euros (inclusive of vat) per car in 2012. The funds from the disposal fee will probably decline slightly. The collection of some materials for which a premium is paid will continue for longer than previously expected. Car sales are expected to fall by 10% in 2012, following an increase of 15% in 2011. Our expectation is that the number of cars to be dismantled will rise by around 5% in 2012.

arn organizationIn 2011, Peter Janssen was succeeded as chairman of the executive board of the Auto & Recycling Foundation by Olaf de Bruijn, the director of the rai Vereniging. There was also a change in the Supervisory Board of arn Holding b.v., with Frank de Munck standing down after 15 years and being replaced by Peter Janssen. arn would like to thank with Mr Janssen and Mr De Munck for their contributions to the further development of arn.

Mrs Ingrid Niessing was appointed as arn’s financial director at the end of August 2011. The expansion of the execu-tive board was dictated by the growing complexity of the organization and the growth of arn’s activities. I would like to thank all of arn’s employees for their dedication and all the external partners for the successful cooperation in 2011!

arn can reflect on a good year in 2011. The undoubted highlight was the start of operations at the Post Shredder Technology (pst) facility in Tiel on 28 April 2011. The enormous public interest and media publicity for this event show that arn has proved its worth as a partner in attempts to increase sustainability in the mobility chain. The facility strengthens arn’s posi-tion and enhances its reputation. It also allows the consumer to see how the waste disposal fee for cars is being used. The European Union has also expressed its appreciation of arn’s activities. The European Commission has allocated approximately one million euro from the life+ subsidy programme for the develop-ment and implementation of the eu’s na-ture and environmental policy to further improve the recycling processes. The pst facility, which will play an essential role in complying with the target of recycling 95% of cars laid down in the End of Life Vehicles Directive, serves as a demonstration pro-ject for the rest of Europe. There were also disappointments in 2011. arn’s market share fell to 82.5% from 86.7% in 2010. The main culprit was leaks in the stream of cars for recycling. Fake exports (cars disappearing without actu-ally being exported) were also a problem.

This practice is distorting competition and harming bona fide dismantling and shredder companies. It is also bad for the environment, because there is no form of control whatever of what happens with the materials from these cars. arn would like to see the government and automotive industry join forces in a severe crackdown on dishonest practices. Measures should also be taken to combat the growing trade in parts from old and damaged cars by parties that do not always comply with the laws and rules. Expectation 2012arn Recycling expects its activities to grow in 2012. The volume of shredder waste processed by the PST facility is expected to double to 60,000 tons per annum in the course of the year. The diversity of contracts secured by arn Advisory will increase. The arn Environmental Scan and the Sustainable Business Scan (in associa-tion with bovag) is a steady base for arn Recycling Services. arn Auto Recycling will continue to pursue further cost reduc-tions in the chain through its tendering procedure and by concluding the best possible agreements with collection and recycling companies. Apart from reduc-ing costs, the Ecotest, which was jointly

Foreword The commissioning of the pst facility in Tiel will further enhance arn’s ability to fulfil its objectives. A European grant to the tune of 1 million euro will give arn the funding it needs to optimize the recycling processes. arn is hard at work sealing off any leakage flows, and increasing its market share.

32 arn Sustainability Report 2011

electrical vehiclesAccording to expectations, this number of electrical vehicles will be driving on the roads of the Netherlands. In 2011, 34 hybrid vehicles and two electrical vehicles were dismantled. This process reveals that the dismantling of damaged and old batteries requires specific knowledge, in particular because of the high voltages generated by the batteries. A training course for this work will be developed in 2012.

In an increasingly mobile world in which awareness for sustainability is growing, it is essential to constantly and proactively search for the most efficient and sustain-able use of raw materials. Important factors driving that trend are the desire to improve the living environment and to use raw materials efficiently and sparingly. But companies also benefit financially from sustainable business operations, and hence they also contribute to the continuity of the enterprise. arn has taken the lead in making the positive effects of sustain-ability measureable in the mobility sector. That is the practical aspect of arn’s efforts, together with its partners, to raise the level of sustainability in the mobility chain.

EcotestThe Ecotest, developed in association with FFact, allows sustainability to be measured. The model used shows the performance in terms of sustainability of the entire recycling chain for old cars, but also of each partner within the chain. To give a specific example: according to the model, the arn recycling system yields savings of 1.7 tons in CO2 emissions for each end-of-life car. That is the equivalent of the CO2 emissions of an average car over more than 12,000 kilometres. The Ecotest

can also calculate opportunities for further improvements in the sustainability of a company’s operations. The Ecotest provides arn, the centre of expertise for sustainability in the mobility sector, with the underlying data to support the further development of its activities, including the optimization of the overall performance of the recycling chain for end-of-life cars and the development of markets for the high-quality recycled materials from the pst facility. The Ecotest can be widely used throughout the recycling sec-tor. Analyses are currently being made for the recycling of car tyres and batteries, for example.

Pioneering roleThe scarcity of raw materials is leading to growing interest in discarded products. Consequently, the value of materials from old cars is increasing. Cars also contain more valuable materials from built-in computer-driven systems, for example. arn’s ambition is to process those materi-als and to encourage and assist market actors in the use of the recycled fractions for high-value applications. This is all part of arn’s business strategy of playing a pioneering role in the mobility sector.

Vision and policy arn makes sustainability measurable. Sustainability is a term with many different aspects. It is therefore sometimes difficult to determine what actions a company should take, and what positive effects those actions will have. It is up to arn to ensure the measurability of the gains that can be achieved through sustainability.


PST facility4

170kgAt the installation, materials are separated off for reuse, using Post Shredder Technology.

A car taken to be dismantled is almost completely processed, and the various materials are reused. An overview of what is separated, where.

My car to the scrap yard:what happens?

1

1000 kgA company approved by the RDW registers the vehicle for dismantling

Second-handparts such as:• engine• gearbox• headlights etc.

230 kg

at car dismantling company

Here, one-third of the car is separated:

Dismantling2

310kg

Shredder company

Retrieval of metals• iron• copper• aluminium

3

520 kg

ARN-materialsincluding: • liquids• tyres

80 kg

1/3

Fibres1/3

Plastics1/3

Minerals

at the car dismantling company

Deregistration of a vehicle

“�Sustainability�must�not�be�allowed�to�become�bogged�down�in�idealism;�it�has�to�deliver�con-crete�results.�Sustainability�should�have�added�value.�For�businesses,�that�added�value�may�be�cost�savings,�increased�profits,�more�customer�satisfaction�or�a�better�image.�All�around�us�we�are�seeing�that�businesses�that�take�an�interest�in�their�surroundings�are�better�able�to�justify�their�existence�in�the�long�term.�� However,�it�is�my�firm�conviction�that�sustainability�can�only�be�successfully�achieved�through�cooperation�with�other�parties�and�knowledge�sharing.�Everyone�has�to�join�forces�if�we�are�to�take�the�next�step�towards�achieving�a�sustainable�outcome.�On�an�international�level,�too,�we�need�cooperate�in�order�to�achieve�improvements.�For�example�with�the�European�organization�of�car�manufacturers�acea.�Knowledge�generated�at�arn�will�help�car�manufacturers�to�achieve�their�sustainability�targets.�� By�processing�end-of-life�vehicles�we�deliver�a�huge�contribution�to�sustainability.�Our�work�really�does�help�protect�the�environment�and�we�are�right�to�be�proud�of�that�fact.�The�pst�facility�makes�a�massive�contribution�to�im-proving�the�image�of�the�automotive�industry,�in�addition�to�which�we�are�raising�awareness�among�car�drivers�about�how�we�can�sustain-ably�process�a�car�at�the�end�of�its�lifecycle.�

The depletion of raw materials means that producers are searching intensively for ways of retaining control over the materi-als they use for their products. One option would be for manufacturers to introduce a type of lease construction for materials, where consumers would pay a price to use a product for a specific period , while the producer retains ownership of the materials. A number of car makers want to retain ownership of the batteries in electric vehicles, for example. This would make them less dependent on the availability and price of the raw materials they need. Another option might be to introduce a deposit system, where companies pay a premium for the return of materials. The anticipated trends will create new opportunities for arn. As manager of the recycling chain, arn can help producers in recovering the materials from their prod-ucts. The pst facility will play a key role in this. arn also has a structure in place for collecting materials and is exploring ways of recovering materials as efficiently as possible. To perform its role as manager of raw materials, the post shredder tech-nology will have to be refined to allow for further separation of materials. Ideally, as often as possible the fractions emerging

from the pst facility would be the same as the basic materials used in the production process. A logical step in arn’s further develop-ment is the creation of recycling systems for other mobility products. Since 2011, arn Scooter Recycling Nederland has been helping to establish a system for recycling scooters and mopeds. arn is also holding talks with the manager of the rail network, ProRail. In the health care sector there are opportunities for recycling of products that use electric motors, such as electric wheelchairs, mobility scooters and adjust-able beds. Growing sustainability in the mobility sector arn operates in a dynamic environment. With an appropriate policy towards corporate social responsibility and further professionalization of its own organization, arn will be able to evolve further as a sustainable organization in the years ahead. In this way, arn will make its own contribution to increasing the sustainability of the mobility sector. arn’s policy addresses the three dimen-sions of sustainability: people, planet and profit.

Activities of the individual operating companies that help in accomplishing arn’s mission include:arn Auto Recycling– Increasing arn Auto Recycling’s market

share.– Curbing leakage flows from the recycling

system.– Assisting car dismantling companies

in the collection of materials with a posi-tive value.

arn Recycling– Increasing the recycling percentage– Reducing the costs of car recycling.arn Recycling Services– Positioning arn’s Environmental Scan

and bovag’s Sustainable Business Scan firmly in the mobility sector.

– Reducing costs of waste flows for the mobility sector.

arn Advisory– Using its expertise for internal and

external assignments.

More info www.arn.nl/english/ARN/

About-ARN/Vision-on-sustainability

“�Sustainability�can�only�be�achieved�through�cooperation�and�knowledge�sharing”

Arie de Jong Managing director arn

Progress�is�essential�to�us�all.�For�me,�sustain-ability�is�itself�an�essential�element�of�progress.�With�that�in�mind,�we�must�continue�to�further�develop�in�our�specialist�field,�namely�recycling.�After�all,�nothing�stays�the�same:�the�market,�the�composition�of�products�and�even�the�role�of�sustainability�itself.�That�is�why�I�see�such�an�important�role�for�arn�as�a�driver�for�innova-tion�and�cooperation�to�further�the�goals�of�sustainability.”

7

kg shredder residueHow do you recycle the material from the pst facility for the highest possible value? Keeping the characteristics of the material in the back of your mind, you start searching for possible applications. Identifying possible solutions is an unpredictable process, ranging from a brainstorming session with architects from the construction sector to production companies working with similar materials. At a certain point, we ended up at a composite company that manufactures unique products including chairs and other items of furniture using natural fibres and resin. Together, we started looking at our mineral and fibre fractions. The result was a sheet material produced using bio-based resin that could for example ideally be used for the production of street name signs. Every year, the pst facility is expected to process some 35 kilotons of automotive shredder residue. Broadly speaking, the shredder waste consists of one third fibres, one third plastic and one third minerals. We are now on the lookout for new applications for 10 kilotons of fibres and 10 kilotons of minerals.

In 2011, arn enhanced its position as a centre of expertise for the environment and recycling in the mobility sector. arn is gaining a strong reputation in the Dutch recycling market.The four operating companies each play their own part in carrying out arn’s mission to promote sustainability in the mo bility sector. Each of the operating companies has its own responsibilities and management, and the individual manag-ers report to the executive board of arn Holding. arn wants to further develop the organization in accordance with the principles of the three domains of corpo-rate social responsibility : people, planet and profit.

Binding factorIn its short existence the pst facility in Tiel has grown from a minor player to a binding factor within the arn organiza-tion. Every employee of arn is proud of the production facility, whose activities have created a new dynamism and elan in the organization.

Respect Respect is one of the key aspects that underlines arn’s approach to sustainabil-ity. Respect for one another is essential for creating a good working atmosphere that is conducive to achieving our common goals. For arn as an employer, this means listen-ing to the employees and giving them the responsibility appropriate to their jobs. Employees are given room to perform their jobs as they see fit within the prescribed limits. The challenge is to find a healthy balance between achieving a goal and allowing employees discretion in how that goal is reached. Another aspect of respect is that the employer informs employees in good time of developments that are relevant to them.Employees are assigned a key role in promoting arn as a reliable and solid partner that implement the producer responsibility. A fundamental require-ment is that they are professional in their contacts with stakeholders, customers and other external parties.

Further professionalization To increase the professionalism of the organization, a new erp software package will be rolled out in 2012.

Profile and organization ‘Tiel’ creates new dynamism in the organization. The opening of the pst facility in Tiel started with an eye-catching opening show. Three percussionists gave a performance on car wrecks, wheelie bins and oil drums. Secretary of State Joop Atsma handed over the key to the factory, and guests could enjoy a film and listen to an audio tour about the separation process. The plant is now running at full capacity.


“�The�Ecotest�will�contribute�to�a�targeted�optimization�of�the�output�from�the�pst�facility”

Marijn van der Maesen Consultant at FFact

Trade association of companies in the mobility sector

Trade association of vehicle body repair companies

Trade association of manufacturers and importers of road vehicles

Trade association of car dismantling companies

The new software is better suited to arn’s requirements in allowing the processes in the organization to run smoothly and for dealing more efficiently with internal and external data in communication, both within arn and with stakeholders. Individual employees will benefit from the further professionalization of the organization, as it will enhance their personal development and career pros-pects. arn has a dedicated training policy. Managers are provided with instruments to provide career advice and internal coaching. Employees can follow courses to acquire specific knowledge of new develop-ments in the areas in which arn is active, for example the implications of the emer-gence of electric vehicles and advances in the application of materials from the pst facility.

Healtharn devotes a lot of attention to creat-ing a pleasant working environment and promoting the health of its employees. For example:– employees can have periodic voluntary

medical check-ups, if necessary ac-companied by strictly personal health advice;

– employees can join the company fitness

scheme and the bicycle scheme;– the company promotes a clean desk

policy;– a healthy lunch is provided every day,

always with fruit on the table;– sporting activities are organized for the

entire staff;– smoking is discouraged.

AbsenteeismThe absenteeism rate in 2011 was 1.7%; the national absenteeism rate in comparable companies was well above 3% in 2011. In consultation with the occupational health and safety service, measures are being formulated to prevent illness and incapac-ity for work.

Management expandedAt the end of Augustus 2011, arn’s execu-tive board was expanded with a financial director, who will also be responsible for support services, including hrm and infor-mation technology.At the end of 2011, arn had 46 employees, including 14 at arn Recycling in Tiel. Additional employees will be hired with the planned introduction of a two-shift operation in 2012.

“�In�my�view,�the�real�added�value�of�the�Ecotest�is�that�it�delivers�arguments�for�sustainability�based�on�hard�figures.�The�tool�also�makes�it�possible�to�compare�the�sustainability�per-formance�of�different�companies.�The�Ecotest�calculates�the�three�key�sustainability�criteria:�CO2�emissions,�raw�material�preservation�and�the�economy.�A�key�characteristic�of�the�tool�is�that�as�far�as�possible�it�ties�in�with�practice.�After�all,�the�results�are�based�on�information�we�obtain�directly�from�the�players�in�the�product�chain.�Based�on�the�Ecotest�a�business�or�organization�can�redirect�its�sustainability�policy.�� arn�can�use�the�Ecotest�jointly�developed�with�us�to�specifically�optimize�the�output�from�the�pst�facility.�The�key�point�for�arn�is�to�identify�how�to�produce�the�highest�qual-ity�end�product;�market�value�is�one�of�the�components�of�the�analysis.�The�better�you�can�separate�the�shredder�residue,�the�greater�the�potential�quality�of�the�end�product,�and�the�higher�the�yield.�The�fibre�fraction,�for�exam-ple,�can�be�used�for�processing�sludge�or�as�a�composite�in�construction�materials.�The�latter�option�delivers�the�greatest�return�in�terms�of�improved�CO2�emission�savings�and�a�higher�market�value�of�the�materials.�The�Ecotest�helps�to�deliver�facts�to�support�the�decisions�that�need�to�be�taken�to�optimize�output.”

bovag focwa rai stiba

Auto & Recycling Foundation

arn Holding

arn Auto Recycling arn Recycling arn Recycling Services arn Advisory

Increase arn Auto Recycling’s market share.

Curb leakage flows from the recycling system.

Assist car dismantling companies in the col-lection of materials with a positive value.

Increase the recycling percentage.

Reduce the costs of car recycling.

Position arn’s Environmental Scan and bovag’s Sustainable Business Scan firmly in the mobility sector.

Reduce costs of waste flows for the mobility sector.

Use its expertise for internal and external assignments.

Directs the activities of the operating companies, arn Auto Recycling, arn Recycling, arn Recycling Services and arn Advisory.

Handles the financial administration, personnel management and marketing & communication.

Steers arn Holding.

Principal of the holding company.

Supervisor of disposal fee fundFoundation with four executives who represent the car industry in the Netherlands:

Participation in ‘green driving’ challenge As part of its Corporate Social Responsi-bility policy, arn is taking part in the Green Driver Challenge, a four-month competition designed to promote a sus-tainable style of driving that reduces fuel consumption. Participants are expected to drive as efficiently as possible and so reduce CO2 emissions. Practical tips for driving more cheaply and smartly are part of the challenge. Employees are competing individually and in teams against each other and against other organizations. arn is also competing as an organization.

More info www.arn.nl/english/ARN/

About-ARN/What-we-do

Supervisory Board

The holding is supervised by the Super visory Board (two industry representatives and three independent members).

11

kg basic oilThe oil collected by vehicle dismantling companies and garage businesses is fully re-processed into base oil. As its name suggests, base oil forms the basis for a large number of oil products, such as engine oil. For every 100 kg of oil we supply, about 60 kg of base oil are left following the regeneration process. Every year, around one million kg of used oil are regenerated to form 600,000 kg of base oil.

arn Auto Recycling oversees the recycling of end-of-life cars in the Netherlands. It is responsible for ensuring that cars regis-tered for dismantling are recycled properly in accordance with the End-of-Life Vehicles Management Decree. As chain manager, arn decides where the materials are sent for recycling. From 2015, the statutory standard is that 95% of the weight of a car should be recycled, with at least 85% of the weight being recycled and the balance being achieved through energy recovery. Until then, the statutory recycling stand-ard is 85%. arn works with almost 300 partners in the recycling chain, including arn’s contract partners: 247 car dismantling companies, 4 collection companies, 17 recycling companies and 14 accredited shredding companies. The trends in vehicle numbers that are relevant for arn Auto Recycling are presented in the annex on page 40.

Termination of dismantling premiumsIn 2011, arn started to phase out the payment of dismantling premiums for a number of materials following the commissioning of the pst facility in Tiel, where shredder waste is processed into useful materials using post shredder technology (pst).

The current situation for different materials is: pur�foam,�coconut�fibre,�rubber�strips�and�safety�belts� Payment of the dismantling premium was stopped as of 10 April 2011. Car dismantling companies were given until 1 June 2011 to register the materials they had removed via the Extranet.Bumpers,�hubcaps�and�grilles� Talks with enforcement agencies and the trade asso-ciation stiba are at an advanced stage.Glass� The dismantling premium will end when markets have been found for high-quality applications for glass from the pst facility. arn Advisory is conducting extensive research into this.

Curbing leak flowsarn is working closely with trade asso-ciations, investigative agencies, the rdw and other partners in the Foundation for Tackling Vehicle Crime (avc). There has been a leak flow if the number of cars reg-istered for dismantling is greater than the number of cars that arrive at the shredding companies. arn Advisory is investigating methods of gaining a clearer view of the illegal waste streams.

arn Auto Recycling Focus on tackling unfair competition. Every year, end-of-life vehicles disappear from view, into the illegal circuit. Exactly how many cars disappear in this way is pure guesswork. Signals from the market suggest that numbers are enough for it to be a cause for concern and a problem that requires an integrated approach.

Developments in 2011 – Dismantling premium ended for pur foam, coconut fibre, rubber strips and safety belts.

– Initiative taken to establish an integrated approach to leak flows and crime in the recycling chain.

– A number of reports of unfair competition were received.

– Car dismantling companies gave arn an overall rating of 7.0 for its service.

– Participation in SafeBAT.– A meeting was organized to inform

importers about the new categories in myBatbase.

– Approximately 900 fully electric and hybrid cars with a Li-Ion battery were newly registered.


In the Netherlands, some 500,000 cars part company with their �nal owner every year. Of those, the majority are correctlyrecycled via ORAD. A small proportion, however, does not follow that route. Where are the leakage �ows?

Last owner Netherlands

Controlled recycling

supervised by ARNRecycling outside ARN.

Possible leakage �ows

and risks of pollution.

Registered for export but not exported

Separation of• Liquids• Glass• Airbags• Seatbelt tensioners

• Second-hand parts

• Tyres• Oil filters• Batteries

When vehicles are chopped, waste

substances are not properly separated

Administrative error

in system input

• Metals• Minerals• Fibres• Plastic• Other

Above all to

1. Poland

2. Belarus

4. Ukraine

End of life beyond scope of ARN

ShredderARN-approved

Deregistration

via Government Roads

Agency in ORAD

(online registration

car dismantling)

Incorrectderegistration

Scrapping under

own management

Choppingrather than shredding

Export

Car dismantling companies

Not a�liated to ARNCar dismantling companies

A�liated to ARN

DEREGISTRATION

DISMANTLING

SHREDDING

© Un

ger-K

ism

an 2

011

Illegal scrapping

In the Netherlands, some 500,000 cars part company with their �nal owner every year. Of those, the majority are correctlyrecycled via ORAD. A small proportion, however, does not follow that route. Where are the leakage �ows?

Last owner Netherlands

Controlled recycling

supervised by ARNRecycling outside ARN.

Possible leakage �ows

and risks of pollution.

Registered for export but not exported

Separation of• Liquids• Glass• Airbags• Seatbelt tensioners

• Second-hand parts

• Tyres• Oil filters• Batteries

When vehicles are chopped, waste

substances are not properly separated

Administrative error

in system input

• Metals• Minerals• Fibres• Plastic• Other

Above all to

1. Poland

2. Belarus

4. Ukraine

End of life beyond scope of ARN

ShredderARN-approved

Deregistration

via Government Roads

Agency in ORAD

(online registration

car dismantling)

Incorrectderegistration

Scrapping under

own management

Choppingrather than shredding

Export

Car dismantling companies

Not a�liated to ARNCar dismantling companies

A�liated to ARN

DEREGISTRATION

DISMANTLING

SHREDDING

© Un

ger-K

ism

an 2

011

Illegal scrapping

In 2011, arn developed two methods to improve monitoring of the leak flows:1 checks by inspectors of the volumes of

materials at car dismantling companies;2 monitoring through the exchange of

information with the intermediate trade. arn is still studying this option.

arn published a special issue of its magazine 95 devoted to the subject of leak flows in recycling in the summer of 2011. The publication prompted Guus Wesselink, the director of the avc, to establish a work-ing group to investigate malpractices in the car trade. The working group has identified three major problems: Fake-exports� Where cars are exported on paper but do not officially leave the country. This distorts competition and causes damage to legitimate car disman-tling and shredder companies. It is also bad for the environment, since these cars are generally not recycled in accordance with environmental guidelines. The number of cars involved is estimated at several tens of thousands every year.Dismantling�under�own�management�The threshold for registering a vehicle for dismantling under own management is very low. This leads to many cases of illegal

commercial dismantling without the necessary licence or certificate.Sale�of�discarded�vehicles�on�Internet� �There are more than 3,500 private dealers on the Internet. They sell car parts on a scale that must involve more than one car. They are in fact operating commercially, which means that they must also comply with the relevant rules. It is also often impossible to determine the origin of the spare parts.

Integrated approacharn has taken the initiative to develop an integrated approach to dealing with leak flows and crime in the recycling chain. The system would be modelled on the Regional Information and Expertise Centres, which serve as information hubs and centres of expertise for provinces, municipalities, the public prosecution service, the police, the special investiga-tive services and the tax authorities in the fight against organised crime. The aim is to achieve closer cooperation between su-pervisory authorities, inspection agencies, organizations like arn, stiba , the prov-inces and the tax authorities in tackling abuses in the recycling chain.

“�Interaction�with�partners�increases�effectiveness�in�tackling�leakage�flows”

Aarnout van Duuren Manager arn Auto Recycling

Tackling unfair competitionAt regional meetings in February 2011, arn called on car dismantling companies to provide tips about unfair competition. In response, there were 31 reports in the first half of the year. Almost all of the tips related to environmental offences. Two concerned other illegal activities, such as the sale of parts from stolen cars and vin switching, and they led to a major investi-gation that had not yet been completed at the end of 2011.

Certified car dismantling companies arn wants to continue expanding the net-work of car dismantling companies. In the process, it will gradually switch to remu-neration for quality rather than quantities of materials. The network of car dismantling compa-nies could also be used in future to recycle products from other sectors. The govern-ment must provide assistance in achieving the improvement in quality. In 2011, arn awarded an additional payment of roughly 60% of the annual cer-tification costs to the majority of certified car dismantling companies. The additional fee was raised to 100% on 1 January 2012.

“�In�the�fight�against�unfair�competition,�arn�uses�its�powers�of�persuasion�both�on�the�government�and�the�private�sector,�in�particu-lar�the�car�dismantling�industry.�Our�strength�lies�in�very�solid�grassroots�ties�with�the�vehicle�dismantling�companies.�They�supply�us�with�practical�information�from�the�sector�and�we�can�use�that�information,�backed�up�by�our�own�data,�in�discussions�with�external�parties�such�as�enforcement�bodies,�the�Ministry�of�Infrastructure�and�the�Environment�and�the�Vehicle�Registration�Authority�(rdw).�This�in-teraction�with�partners�increases�our�effective-ness�and�is�essential�when�submitting�requests�for�enforcement�in�tackling�unfair�competition,�revising�legislation�and�tackling�abuse�of�the�rdw�scheme�for�dismantling�under�own�management�and�false�exports.�� In�my�current�position,�I�am�a�member�of�a�fair�number�of�consultation�bodies�on�behalf�of�arn.�We�cooperate�for�example�with�the�rdw,�the�sector�organization�stiba,�the�police�and�the�Tax�and�Customs�Administration.�To�give�a�practical�example�of�the�influence�of�arn:�the�Ministry�of�Infrastructure�and�the�Environment,�in�consultation�with�the�rdw,�is�preparing�measures�aimed�at�restricting�dismantling�under�own�management.�The�changes�involve�raising�the�age�limit�for�vehi-cles�or�even�abolishing�the�scheme�altogether.�Both�would�be�positive�developments�because�

there�are�alternatives,�for�example�disposal�via�arn�dismantling�companies.�� For�me,�one�of�the�most�important�elements�is�effective�feedback�to�the�grassroots.�Effective�communication�with�the�car�dismantling�com-panies�about�our�activities�ensures�continuity�in�tackling�unfair�competition.”

15

The European Commission has drawn up detailed rules for determining these percentages and for the way in which the Member States of the European Union (eu) must report on these figures to Brussels. According to these reports, the European Commission will check whether the targets as formulated in the elv Directive have been complied with. The rules of the European Commission determine that periodic shredder tests have to be carried out. The results from these shredder tests are needed for the annual report to the Ministry of Infrastructure and the Environment. In 2010, arn undertook a shredder test in order to have a baseline measurement prior to the commissioning of the pst facility, in 2011. The data from the shred-der test in 2010 were used for calculating the recycling percentage for 2011. The recycling figures published in this report and the quantities of material processed were calculated according to the European monitoring rules. In 2013, arn will once again carry out a shredder test in which the performance of the pst facility will be included.

Quantity of end-of-life vehiclesIn 2011, 195,052 end-of-life vehicles arrived at the shredder companies for treatment. The number of registrations in orad (the

To qualify for the premium, companies must meet a number of criteria:– Discarded vehicles must have demon-

strably been delivered to a shredder company with an arn contract.

– Barcode labels must be correctly applied.– The accompanying forms must contain

the correct Eural code and accompanying waste code numbers.

– The arn compressor in the drainage installation must be legitimately used.

– There must be a signed drainage agreement.

– Consignments must be claimed in the Extranet after receipt of weighing vouchers.

– The quality requirements must be met for materials: glass, tyres and lpg-tanks.

Implementation extranetThe Extranet went into use on 1 January 2011. There were some initial problems with its launch. Teething problems in the system meant that payments were late and procedures changed. They also affected communication with the companies. By the end of 2011, the Extranet was working properly and helping to reduce the admin-istrative costs for companies. To further reduce those costs for its partners, in 2012 ARN will start paying collection companies and recycling companies directly and they will no longer be paid by the car disman-tling companies.

Customer satisfaction surveyarn conducted a second customer satis-faction survey among car dismantling companies in September 2011. The overall rating was 7.0, which is slightly lower than the score of 7.4 in the first survey in 2010. The outcome was not a complete surprise for arn. In addition to the problems with the introduction of the Extranet, a number of staff changes were also occurring at arn around that time. arn has taken the results of the survey to heart. Measures have been taken to streamline the administrative procedures and payments. The introduction of the news page on the Extranet should improve communication with the stakeholders. Efforts will also be made to involve car dismantling companies more closely in arn’s activities and at an earlier stage. Since the last quarter of 2011 arn has been holding intensive talks with enforce-ment agencies and stiba about the end to the dismantling of larger plastic parts. The aim of these talks is to ensure that all the stakeholders are on the same wavelength so that the parties communicate the same message.

Google AdWordsarn has switched from advertising in the Yellow Pages to online advertising with Google AdWords. This is a way of attracting visitors to a website and making it easier

to find a company. A hundred of the 247 car dismantling companies added their own page to the arn site in 2011, complete with a link to their own website. More than 73,000 visitors found a car dismantling company via the arn site using Google AdWords. In 2012, arn will encourage the other car dismantling companies to post their own page on the arn site.

Tender for collection and processing of car tyresCar tyres removed by car dismantling companies for arn are collected and stored by collection companies under contract with arn, which then transport them to recycling companies selected by arn. arn issued a tender for the collection and processing of car tyres in the autumn. Among the requirements that bidding companies must meet are that they are in possession of an iso 9001 certificate. They must also have all the relevant envi-ronmental permits.

Market shareOf the total number of end-of-life vehicles dismantled in 2011, 206,150 were processed via arn, representing a market share of 82.6%. In 2010, the arn share was 86.7%. Two reasons can be put forward: increase in dismantling under own management and increase in orad registrations by businesses also holding a permit for the scrap metal trade.

Recycling yield in 2011 The basis for the treatment of end-of-life vehicles and accounting for those activities is laid down in the eu ‘Directive 2000/53/ec’. This Directive was taken up in the Netherlands in the End-of-life Vehicle Management Decree (Bba), which was revised in 2007. One of the requirements is that of all end-of-life vehicles registered in the Netherlands, at least 85% of the weight must be recycled or reused. At least 80% must be reused as a product or a material, while the remaining 5% can be achieved through energy recovery. The recycling target has been raised from 2015 onwards to the reuse of 95% of the weight. Of that, at least 85% must be achieved through reuse as a product or material and a maximum of 10% through energy recovery.

online vehicle dismantling registration system) by arn companies in 2011 totalled 206,150. The discrepancy can in part be explained by vehicles not yet disposed of at vehicle dismantling companies.

Determination of the average weight of end-of-life vehiclesIn 2011, the average empty weight of all end-of-life vehicles was calculated at 1016 kg. This figure was calculated on the basis of the orad registrations from the Dutch vehicle registration authority rdw.

Share of dismantling companies in the recycling percentageThe recycling companies that are under contract with arn provide figures on the mass balance. The mass balance indicates how much of the processed material has been usefully reused, incinerated with energy recovery or dumped. For a balanced report, these mass balance figures are compared with the weighing note figures from the collectors and the vehicle disman-tling companies. Table 1 shows the actually processed volumes of material according to their European List of Waste (LoW) code. Fuel (diesel, petroleum and gas) are not included in the calculations for the recy-cling percentage. In 2011, 248.122 kg of fuel (diesel, petroleum and gas) were processed in an environmentally-safe manner.

In the recycling percentage, the parts dismantled for reuse by the dismantling companies are included in the recycling percentage. This is achieved by weighing the stripped end-of-life vehicle before it is transported to the shredder. Reuse is determined as follows: average end-of-life vehicle weight minus the average weight of the stripped (dismantled) end-of-life vehicle, minus the arn materials.

Share of shredder companies in the recycling percentageThe results of the shredder test carried out in 2010 also served as the basis for the cal-culation of the share of the shredder com-panies in the recycling percentage in 2011. These figures relate only to the end-of-life vehicles processed by the Dutch shredder companies. For end-of-life vehicles pro-cessed by foreign shredder companies, the individual mass balance figures from these companies are included in the recycling percentage. The share of reuse comprises the metal separated by the shredder company from the end-of-life vehicles for further use in the metal processing industry.

Table 1 Materials of depolution and dismantling in kg based on recycled quantities

kg recovery

Total recyclingLoW-code Material Reuse Recycling Energy recovery and recovery Disposal 13 02 05 mineral-based non-chorinated oil 979,643 21,068 1,000,711 52,66916 01 07 oil filters 44,899 19,242 64,141 016 01 13 brake fluids 43,629 938 44,567 2,34616 01 14 anti-freeze fluids 653,315 34,385 687,700 226,71114 06 01 refrigerant 3,122 0 3,122 10116 01 16 tanks for liquid gas 112,349 0 112,349 016 06 01 lead batteries 707,246 97,551 804,797 8,12916 01 03 discarded tyres 3,660,638 108,572 3,769,210 016 01 20 glass 3,707,510 0 3,707,510 505,57016 01 19 plastics 2,064,182 948,456 3,012,638 127,71816 01 99 waste not otherwise specified 45,162 0 45,162 5 46,486,016 12,021,695 1,230,212 13,251,907 923,249For explanatory notes on the realization of the arn materials in this table, see appendix on page 38.

In 2011, 96.2% of the weight of a car was recycled; of this, 83.1% was material reuse. By 2015, this 83.1% must have been raised to at least 85% material reuse; the pst facility aims to make an important contribution to achieving this target.

In 2011, 96.2% of the weight of a car was recycled.

From 83.1% to 85% by 2015


scooters and mopeds discardedIn the Netherlands, between 2009 and 2011, in total 35,000 scooters and mopeds reached the end of their useful life. Although the volume of waste from a scooter amounts to only 10% of that from a car, the sector still recognises the importance of taking respon-sibility for this waste flow, too. As a result, the sector has established a collection and recycling system for scooters that goes by the name Scooter Recycling Nederland. This system now manages approximately one million kg of waste every year.

Processing of shredder wasteSince March 2010, (car) shredder waste is incenerated in a waste-fired power station (waste incineration installation) with R1 status. The R1 status means that the waste incinerated in this plant counts towards useful application with energy recovery. Various shredder companies supply their shredder waste to a waste incinerator in-stallation with R1 status, so this share also contributes to the recycling performance of end-of-life vehicle. As a consequence, the energy recovery proportion of the recycling percentage in 2011 was relatively high, as was the case in 2010.

Recycling yield in 2011Table 2 provides an overview of the recy-cling yield from end-of-life vehicles in 2011. Reuse of 23.5% consists of the components dismantled from the end-of-life vehicle by the vehicle dismantling companies. The recycling percentage at 59.6% is the total of the arn materials (see table 1) and the metals reused following shredding. The figures in table 2 show that in 2011, a total reuse and recovery percentage of 96.2% was achieved, of which 83.1% reuse as product or material and 13.1% incinera-tion with energy recovery. As a result, the statutory obligation from the Management of End-of-Life Vehicles Decree was fulfilled. As compared to the recycling percentage achieved in 2010, this represents a rise of 0.9%, mainly caused by the larger propor-tion of incinerated shedder waste. From 2015 onwards, according to the European rules, a maximum of 10% may be reported as recovery.

Legislation and regulationsCar dismantling companies that fall under Activities Decree Since 1 January 2011, all car disman-tling companies have fallen under the Environmental Management (General Rules for Establishments) Decree (oth-erwise known as the Activities Decree). This means that car dismantling compa-nies only need to report the company’s activities to the competent authority. All of the rules that previously applied remain in force. The rules laid down in the Management of End-of-Life Vehicles Decree on funding for dismantling, collec-tion and recycling have been transferred to the Activities Decree. Consequently, the Management of End-of-Life Vehicles Decree is now a purely a product decree, contain-ing targets for producers.

Change in the rules for dismantling car glass The Ministry of Infrastructure and the Environment amended the Activities Decree with regard to the removal of glass in 2011. The change arises from a decision of the European Court of Justice (C 64/09, 15 April 2010) and a subsequent communica-tion from the European Commission that the End-of-Life Vehicles Directive does not require glass to be removed manually before shredding if the glass can still be reused as a material after shredding. Car glass therefore falls into the same category as large plastic parts and tyres. In the course of 2011 it became clear that, in this context, the definition of large plastic parts refers to bumpers, grills and hubcaps.

Introduction of zero-rate landfill tax for waste Decree from 1 January 2012From 1 January 2012, the landfill tax for waste is zero. In 2011 a provisional decision

was also published to amend the Decree on Landfill Sites and Landfill Ban in 2012. The proposal is to extend the ban on landfilling to various categories of waste, including earth. arn submitted its views on the provisional decision to the Ministry of Infrastructure and the Environment in 2011, calling for the addition of mixed streams or residues from the sorting of the streams of shredder waste to the category of shredder waste. In light of the zero rate for landfill tax, this could guarantee a management structure that is as free of leaks as possible.

European working group on uniform reporting for End-of-Life Vehicles DirectiveTogether with the Ministry of Infra struc-ture and the Environment, participates in an eu working group that has been formed to develop a uniform method for the reporting by eu member states on the End-of-Life Vehicles Directive. Uniformity would make it easier to compare the per-formance of the member states in terms of recycling and help to create a level playing field in the member states. Other members of the working group are representatives of the member states, the automotive industry, the shredder industry and the dismantling sector. In that context, the European Commission will adopt a shredder test protocol in 2012. The mandatory character of this protocol will be effected with an amendment to Commission Decision 2005/293/EC in 2012, which will prescribe the method of reporting to be adopted by the member states for the End-of-Life Vehicles Directive.

Table 2 Recycling yield

recycling per vehicle

Reuse Recycling Total recovery Totaal reuse and recycling Total reuse and recovery

46,486,016 118,161,134 144,119,045 164,647,150 190,605,06123.5% 59.6% 72.7% 83.1% 96.2%

Total number of end-of-life vehicles 195,052Average weight per vehicle 1,016 kg


Outlook for 2012– arn will pay collection and recycling

companies directly.– The Extranet will be expanded further,

for example with a News Page.– arn will hold regional meetings for car

dismantling companies.– Start implementing a recycling chain

for scooters and mopeds.– Secure the iso 9001 certificate for

quality management.– arn will strive for closer cooperation

with stiba to develop more joint servi-ces for the car dismantling sector.

– The management contribution for car batteries and high-voltage NiMH batteries has been fixed at 0.05 euros (excl. vat) per battery.

– The management contributions for Li-Ion batteries for electric vehicles has been fixed at 180 euros (incl. 19% vat) for batteries with a total weight of 100 kg or more and 90 euros (incl. 19% vat) for batteries lighter than 100 kg.

arn Management Plan car batteriesThe arn Management Plan car batteries provides manufacturers and importers that first bring a battery onto the market with a collective solution for meeting their obligations under the Battery Management Decree. To join the scheme, the companies pay a fixed annual management fee for each battery. arn reports annually to the Ministry of Infrastructure and the Environment on the management fee. arn also provides a national network of collection points where private users can dispose of their car batteries free of charge.

Hybrid and electric vehiclesHybrid and electric vehicles constitute a growing market. At the end of 2011, a man-agement contribution was paid for 73 small Li-Ion batteries and 168 big Li-Ion batteries. The number of hybrid vehicles is far higher, a management contribution was paid for 14,232 vehicles. Most hybrid cars now on the Dutch roads are fitted with nickel-metal hydride (NiMH) batteries. The majority of the fully electric vehicles and the new generation of ‘plug-in’ hybrid cars run on lithium-ion (Li-Ion) batteries. In 2020, an estimated 7% of newly reg-istered vehicles will fall into these catego-ries. The first Li-Ion batteries are expected to be discarded in eight years’ time. arn can provide tailored solutions for importers that opt to collect and process Li-Ion batteries themselves.

Participation SafeBAT In 2011, arn took part in the government’s SafeBAT project, together with a number of other organizations. The aim of the research relating to the end-of-life phase was to increase safety and standardization in the management structure for discarded ev batteries. One of the findings from the research was that there are still very few recycling companies capable of processing Li-Ion batteries. NiMH batteries have a positive residual value from the recovery of nickel, cobalt and rare earth metals. The residual value of discarded lithium-ion batteries is still very negative. arn therefore feels the current recycling rate of 5 euros per kilo is still not representative. Another conclusion was

that no second-life applications have yet been developed in practice. Important recommendations to emerge from this study are: – Further legislation on the storage of ev

batteries is required.– Given the severely negative costs of

recycling, further research is needed into the potential for second life applications.

– A specialist should be hired for the safe dismantling of a damaged ev battery (resulting from a crash).

Online registration systemsarn works closely with Stibat, the imple-menting organization for portable and other industrial batteries, in calculating the number of car batteries and high-volt-age (hv) batteries coming onto the market every year. Companies can use the online registration system, myBatbase, to report the quantities of all types of batteries that are brought onto the market. Collection companies and recycling com-panies can report the number of batteries they recollect and recycle in the online system, MyBatteryBalance, another system also used by both arn and Stibat. In mid-2011, new categories of hv batteries were added to myBatbase and a meeting was held to inform importers about it.

Decrease of management contributionsThe management contribution for car batteries and NiMH batteries was 0.07 euros in 2011, and has again been reduced for 2012, to 0.05 euros (excluding vat) per battery. The management contributions for the recycling of lithium-ion batteries will be the same in 2012 as in 2011:180 euros (incl. 19% vat) for lithium-ion batteries with a total weight of 100 kg or more.90 euros (incl. 19% vat) for lighter lithium-ion batteries with a total weight of less than 100 kg. Both rates will apply from 1 January 2012 for lithium-ion batteries in vehicles that are brought onto the market in 2012.

Reserve for car batteriesThe steady growth in the number of hybrid and electric vehicles is causing a sharp increase in the reserve for car batteries. At the end of 2011 the reserve had risen to 133,464 euros, compared with 109,570

euros at the end of 2010. The reserve will continue to grow substantially in the coming years. In the interests of transpar-ency, a balance sheet and a profit and loss account is presented in an annex to this report on page 39.

More info www.arn.nl/english/ARN-Auto-

Recycling/Recycling-of-cars

“�European�recognition�has�contributed�to�a�sustainable�image�and�role�model�position”

Angelina Molenaar Lawyer at arn

“�As�a�legal�advisor,�I�was�very�closely�involved�in�the�application�for�the�life+�grant.�For�arn,�the�awarding�of�this�European�environ-mental�grant�represented�a�major�milestone.�After�all,�by�making�the�award,�the�European�Commission�has�indicated�that�we�are�on�the�right�track�for�achieving�95%�recycling,�and�above�all�the�85%�reuse�of�materials.�On�that�basis,�the�pst�facility�will�serve�as�an�example�for�the�rest�of�Europe.�Other�countries�can�learn�from�our�experience.�European�recogni-tion�has�contributed�to�the�sustainable�image�of�arn�and�the�role�model�position�we�are�striving�for.�� The�life+�grant�has�made�it�possible�to�go�in�search�of�higher-value�applications�for�many�of�the�materials�from�the�pst�facility,�and�to�ensure�that�those�materials�are�success-fully�marketed.�Together�with�a�partner,�for�example,�we�have�developed�street�name�signs�made�from�composite�material�using�the�fibre�fraction�and�mineral�fraction�from�the�pst�facility.�Our�next�step�is�to�interest�municipal�authorities�in�this�sustainable�product.�� As�well�as�starting�the�life+�project,�I�am�now�heavily�involved�in�the�project’s�imple-mentation.�That�is�what�makes�working�for�arn�both�interesting�and�varied.�On�top�of�your�own�specific�expertise,�you�can�contrib-ute�to�the�success�of�a�grant�project.”

21

copper wireFrom seat heating through to engine management systems, over the past few years, the volume of electronic components in cars has increased massively. People are creatures of comfort, both at home and in their cars. Extra electronic systems, however, mean a huge volume of extra wiring, in many cases consisting of copper wire with a pvc sheath. Even following the shredder process, these materials are difficult to separate because the wires become entangled in the textile. However, in a simple but efficient manner, a new element in the pst facility, the Prall Mill (a sort of rotary system) solves this problem. In the machine, the wires are whirled around and collide against a wall with considerable force, which causes them to slowly roll up. A rolled-up copper wire is subsequently far easier to separate. The final kg of the 8 kg per car is separated in the Prall Mill.

The production line at arn Recycling in Tiel has been fully operational since December 2011. The start-up proceeded smoothly, es-pecially given the complexity of the plant where shredder waste is transformed into useful material flows using post shredder technology (pst). Minor problems with the drive caused a small number of stoppages.

Good outlookIntegration in the recycling market is arn Recycling’s message now. The prospects for the supply of shredder waste and for the sale of recovered materials are now good. Actors in the recycling market are already finding their way to the pst facility for partial recycling. The unique project seems to appeal to people. Companies are approaching arn themselves to enquire whether their waste could be transformed into reusable material with pst. In 2011, more than 500 visitors were given guided tours of the plant, including representa-tives of the automotive industry via rai and bovag, as well as school groups and interested individuals. The expectation is that the 95% recy-cling target will be within reach in the course 2012, when annual production can be increased from 30,000 tons to 60,000 tons and the plant will hire additional

employees in order to introduce a two-shift operation.

life+ subsidyIn July 2011, the European Commission granted arn Recycling a life+ subsidy of roughly one million euro. life+ is the eu programme to subsidize the development and implementation of European nature and environmental policy. By helping to meet the 95% recycling target in the eu’s End-of-Life Vehicles Directive, the pst facil-ity can serve as a demonstration project for the rest of Europe.arn can use the life+ subsidy to:– Improve the quality of the end products,

for example by removing mineral oils from the mineral stream.

– Conduct a feasibility study for the recov-ery of copper from specific high-density plastic fractions. These fractions are now sent to a metal processing company in Belgium.

– Develop more advanced technologies, for example to separate fine copper wire.

– Search for optimal sales channels with the highest possible added value, for example for alternatives to thermal recycling for certain plastic fractions.

Developments in 2011– Testing of pst facility in February.– Official opening of pst facility, with

final completion of production line in mid-December.

– Completion of laboratory for analysis of materials, including oil and PCBs.

– eu life+ subsidy of roughly 1 million euro awarded.

– Composition of materials from dust removal installation determined.

– Start of construction of a second bunker hall.

– Certification as Practical Teaching Company for laboratory assistants and process operators.

– Research conducted into possibilities for reuse of minerals.

– Agreements made with hks Metals for the supply of shredded waste.

– Further preparations made for iso 14.001 certification of the environ-mental management system in 2012.

arn Recycling Integration in the recycling market. arn looks at end-of-life vehicles through different spectacles. Every end-of-life vehicle is the start of a new product or the source of raw materials suitable for a range of applications. The opening of the pst facility is the ideal moment to grab the attention of players on the recycling market, and to encourage joint innovations.


Outlook for 2012– Reguliar production to take shape.– Adjustment of fibre module in the

production line.– Doubling of processing of shredded

waste to 60,000 tons a year.– Expansion to two-shift operation.– Completion of second bunker hall.– Continued search for best envi-

ronmental solutions and high-end technologies.

– Agreements on supply with new sup-pliers of shredded waste.

– iso 14.001 certification of environmen-tal management system.

Examples of the reuse of materials:Bricks Mineral fractions, such as sand, rust and glass, are now stored in German salt mines. Laboratory tests have shown that mineral fractions can be reused in the brickmaking industry. In 2012, a pilot project will be carried out to make and use real bricks.Composite�sheet�materials Fibres from the shredder waste of discarded cars can be mixed with waste from the powder coating industry and compressed under high pressure and at a high temperature into robust and waterproof sheets, which could be used for sound screens along motorways or as sleepers under railway tracks. Crusca, a product made entirely from waste materials, has been jointly developed by arn and Holland Composites Innovations and is expected to go into production in 2012.Water�filter A German water authority mixes fibres into sludge to filter water dur-ing drainage. The filter cake is burned to recover energy.Plastic�granulate The lightest fraction of plastics is sent to a French plastic com-pounder, which produces granulate from it that it sells to suppliers of parts for various car manufacturers.

Material from dust removal installationThe composition of the materials from the dust removal installation was determined in 2011. The conclusion is that they can be used in the cement industry with energy recovery and as a filler, in addition to sand, for cement. This avoids the need for landfilling.

Agreements on supply of waste by shredder companiesThe price that a shedder company has to pay to supply waste to arn was de-termined by a large scale pilot project to identify the composition of 150 tons of shredder waste. The price is based on the relationship between the selling costs of the shredder companies and the product they deliver. The guiding principle is that the playing field for the sale of shredder waste must be level for all shredder compa-nies that process cars in the Netherlands. A basic price was fixed for shredder waste in 2011. Firm agreements on delivery were made with shredder company hks Metals in 2011. Since then, other shredder compa-nies have also applied for extensive trials.

Accredited practical training company In 2011, arn Recycling earned accredita-tion as a practical training company for process operators with a diploma in process engineering up to mbo level. The compa-ny’s laboratory in Tiel is also certified as a Practical Training Company, which means that arn can train people for nationally certified diplomas.

More info www.arn.nl/english/ARN-Recycling/

Process

“�We�must�be�ambitious�enough�to�strive�to�achieve�the�maximum;�we�must�always�want�to�go�beyond�the�targets�set.�The�most�impor-tant�contribution�I�can�make�to�that�goal�in�my�position�at�the�pst�facility�is�to�encourage�the�people�working�here�to�achieve�their�goals.�That�is�why�I�try�to�make�sure�everyone�comes�to�work�every�day�with�a�smile�on�their�face,�even�though�they�know�that�some�days�not�everything�will�go�according�to�plan.�� The�pst�facility�was�established�to�achieve�the�95%�recycling�target,�in�particular�the�85%�material�reuse�requirement.�We�have�planned�a�number�of�innovative�projects�to�increase�the�proportion�of�reuse.�One�example�is�what�we�can�do�with�composite�sheet�material�suit-able�for�use�for�example�in�the�construction�industry.�If�the�trial�proves�successful,�we�will�see�a�win-win-win�situation�for�arn,�for�the�construction�industry�and�for�sustainability�as�a�whole.�� arn�is�an�active�partner�in�the�mobil-ity�chain.�We�are�not�looking�to�establish�standard�supplier-customer�relationships.�We�want�partnerships.�The�need�for�coopera-tion�is�self-evident;�after�all,�simply�for�placing�our�products�on�the�market�we�need�partners.�We�leave�the�development�of�new�separation�techniques�to�others;�our�expertise�lies�in�the�resultant�products.�We�are�constantly�in�search�of�new�innovations,�to�allow�us�to�sell�our�products�in�even�higher-value�markets.”

“�Striving�to�achieve�the�maximum”

Hans van de Greef Manager arn Recycling

For the processing of 35 million kg of shredder waste, the facility in Tiel operates 169 machines, of which 84 are transport devices. At maximum capacity, we process twenty thousand kg of shredder waste with a specific gravity of 330 kg/m3 every hour.

30,000 tonnes of shredder waste in every 8-hour shift

Administration

169 machines made up of 100,000 components

Maximum energy consumption 4,000 kw

The output comprises: two fibre fractions, three mineral fractions, three plastic fractions, various ferrous flows, a range of copper flows and several aluminium flows.

Human resources, total 13 fte

Laboratory

Technical services

Production workers

30% fibres30% plastics30% minerals10% dust

25

potential saving of 20,000 kg CO2 emissionsThe arn Environmental Scan examines garages and damage repair companies according to five aspects. One of those aspects is the consumption of energy within the company. The recommendations issued via the Environmental scan often lead to considerable energy savings, good for saving money and good for the environment. On the basis of the scans carried out to date, the average potential saving to be achieved by each company is between 15,000 and 20,000 kg of CO2 emissions.

Developments in 2011– Joint venture with bovag to assess the

sustainability of car companies.– Integration of the arn Environmental

Scan and the scan for bovag’s Approved Sustainability Certificate into the Approved Sustainability Certificate Plus.

– Start of implementation, in association with Van Gansewinkel, of an impro-vement plan for all branches of Care Schadeservice.

– Development and introduction, in association with Kroon-Oil, of an environmental care plan for all company waste.

arn Recycling Services further enhanced its reputation as an adviser on effective management of waste and energy by ga-rages and car repair companies during 2011. By joining forces with trade association bovag, arn Recycling Services significant-ly expanded its services relating to sustain-able business practices. In the coming year, arn will focus more on car dealers and car repair chains.

Environmental and sustainability scansThe partnership established between arn and bovag in 2011 means that car compa-nies will in future be able to choose from three types of scan designed to improve their corporate social responsibility:– The arn Environmental Scan shows

companies how they currently perform in terms of waste management and energy consumption.

– bovag’s scan for an Approved Sustain-ability Certificate assesses car dealers on environmental aspects of their business, the sustainability of their operations and their human resources policy.

– The Approved Sustainability Certificate Plus scan integrates the first twos scans to produce the most comprehensive scan of aspects of corporate social responsibil-ity for car companies.

arn performs the assessments of the companies for all of the scans. Since it was introduced, the arn Environmental Scan has been performed for more than 100 times. In 2011, arn performed 20 scans for the Approved Sustainability Certificate and 58 scans for the Approved Sustainability Certificate Plus. Businesses that are not members of bovag, mainly damage repair companies, can still request an arn Environmental Scan. arn intends to further expand its environmental scan to include, for exam-ple, alternative energy sources, such as solar panels.

Examples of recommended improve -ments:– Replace a 2,500-litre container for busi-

ness waste that has to be collected every week with a 5,000-litre container.

– Replace bottles of liquid that are used when servicing cars with bulk contain-ers with a tap system.

– Replace lamps in a car showroom with lighting that uses less energy.

– Use sensors to switch lights on and off in rooms that are not used throughout the day, such as meeting rooms and toilets.

arn Recycling Services Expansion of services for sustainable enterprise. Many companies in the automo-tive sector already operate sustainably based on their own sense of responsibility for the environment. They can now crown their efforts with a certificate. Bringing together the knowledge of arn Recycling Services and the experience of bovag has resulted in the Approved Sustainability Plus scan and the accompanying certificate.


Outlook for 2012– The arn Environmental Scan will be

further developed in relation to energy, for example by encompassing alter-native sources of energy, such as solar panels.

– Introduction of arn Waste Scan on a ‘no cure, no pay’ basis for companies with a workshop.

– A waste flow monitor will be develo-ped to show importers what happens with waste flows during the lifecycle of a car.

– A customer satisfaction survey will be held among companies that have assigned the collection and processing of their waste flows to arn.

– A joint study will be conducted with trade association focwa to identify what sustainability can mean in the body repair sector.

– Use of Google AdWords to attract customers.

– The Extranet will be used to publish in-formation for clients, such as volumes of waste, invoices, collection data and newsletters.

Improvement programme for Care Schadeservice At the beginning of 2011, arn and Van Gansewinkel started implementing plans to make improvements at every branch of Care Schadeservice, a chain of damage re-pair companies. The plans were drawn up after arn had conducted an environmental scan at all of the company’s repair shops in the Netherlands. The improvements form part of Care’s ambition to reduce CO2 emis-sions by 20% in three years. arn offers to draw up an improvement plan as a follow-up to its environmental scan.

Environmental Care Plan company wastearn and Kroon-Oil developed and intro-duced an environmental management plan for all business waste at the begin-ning of 2011. The plan takes care of the entire organization of waste flows for the customers of the lubricant producer. arn arranges the collection and processing of waste streams for these customers.

Batteries and cable treesThe market for the recycling of batter-ies and cable trees was turbulent in 2011. Competition intensified because of the increase in raw material prices. arn is exploring the potential of these materials.

Starter motors and dynamosResearch conducted in 2011 showed that relatively few starter motors and dynamos are surrendered with parts that can be reconditioned. Consequently, the return is insufficient for arn to handle these materials.

More info www.arn.nl/english/ARN-Recycling-

Services/Services

“�Car�repair�company�‘Care�Schadeservice’�has�enjoyed�three�years�of�positive�cooperation�with�arn.�We�started�with�a�project�to�investi-gate�the�possibilities�for�making�savings,�and�called�in�arn�to�assist�us�in�optimizing�that�process.�arn�can�provide�a�mass�of�specific�knowledge�for�advising�our�54�locations�in�the�Netherlands.�The�arn�Environmental�Scan�has�helped�us�limit�waste�flows.�After�completing�the�scan�at�all�our�locations,�we�identified�the�ten�major�sources�of�waste.�Under�supervision�from�arn,�we�started�work�on�reducing�waste�volumes.�Through�its�ef-forts,�arn�has�helped�us�achieve�our�sustain-ability�targets.�� Of�course�we�are�able�to�identify�ourselves�a�number�of�areas�where�savings�could�be�achieved,�for�example�better�adjusting�compressors,�reducing�the�temperatures�in�paint�spraying�booths,�and�other�issues�relat-ing�to�the�production�process.�When�it�comes�to�building�management�and�dealing�with�equipment�and�lighting,�however,�we�are�no�experts.�We�can�try�to�reduce�gas�consump-tion,�for�example,�but�the�arn�Environmental�Scan�has�taught�us�to�radically�rethink�our�entire�vision�on�operations.�That�is�the�added�value�of�arn.�� Care�Schadeservice�is�the�first�company�in�the�car�repair�sector�to�follow�such�a�deliber-ate�approach�to�sustainability.�Our�efforts�

have�gained�us�positive�media�attention�and�have�helped�improve�the�image�of�the�company.”

Install energy-efficient lighting and sensors

Adjustable skylights for daylight as an alternative for artificial lighting

Replace small liquid packaging sizes with bulk packs

Use of alternative energy sources such as solar panels

“�arn-Environmental�scan�has�taught�us�to�rethink�our�entire�vision�on�operations”

Sven Zipp Manager Operations support Care Schadeservice

29

Scooter Recycling Nederlandrai Vereniging and bovag have set up a system for collecting and recycling scoot-ers and mopeds in an environmentally sound manner. They have established Stichting Scooter Recycling Nederland (srn) to arrange the optimal recycling of all harmful and valuable materials. arn has used its expertise in car recy-cling to design a management structure for the scooter recycling system. Car dismantling companies, scooter dealers and other recyclers can join srn. An additional advantage of scooter recycling is that it will make criminal ac-tivities involving old scooters, such as VIN switching and selling parts illegally, more difficult. There are now a million scooters on the road in the Netherlands. At srn’s request, arn will implement the recycling system, which will start on 1 March 2012.

Cooperation agreement between arn and rdwarn and rdw concluded an agreement in 2011 to jointly provide advice to other countries about the Dutch deregistration system. The agreement builds on the existing cooperation between the organi-zations in the Netherlands, which will be intensified in light of the challenges arising from the large-scale introduction of fully electric cars.

Vehicle recycling in Russia As a result of their participation in a trade mission to Russia in 2010, arn and rdw attended a conference in the Nizhny Novgorod region in October 2011. During the conference there was a discussion of how they could help in setting up a recycling system and integrating it in the vehicle production chain in Russia. arn could play a part in its implementation, in particular. acea is an ideal candidate to design a recycling system suitable for Russia. rdw signed a statement of intent for cooperation in helping the Russian vehicle industry to set up and integrate a recycling system in the vehicle chain. One aspect of this will be to find a solution for the problem of abandoned car wrecks. rdw will recruit arn for its specific expertise in the field of vehicle recycling.

Demonstration unit for car dismantling in Turkeyarn has conducted a survey into car dis-mantling in Turkey for NL Agency. On the basis of the findings, the agency has issued a tender for the establishment of a model car dismantling unit in Turkey. arn will supervise the design of the model unit on behalf of NL Agency during 2012.

Sharing knowledge of pst In 2011, arn investigated the processing of a German shredder company’s shred-der waste in the pst facility in Tiel and prepared a mass balance. This assign-ment reflected arn’s strategy of sharing knowledge about the potential of process-ing with post shredder technology with external parties.

S_Life: sustainability of the car industry in EuropeAdvisory is taking part in the European Commission’s S_Life-project, the purpose of which is to increase the sustainability of the car industry in Europe. arn is working in a cluster with sister organizations from France, German, Italy and Slovenia. The S_Life project will promote closer cooperation between European cluster organizations in the search for new scien-tific, economic and structural solutions for a ‘greener’ automobile chain in every phase of the lifecycle. The project will start in 2012 and last three years.

Rail sectorIn an assignment for the rail sector in 2012, arn Advisory will use knowledge and experience from the automotive sector to explore the various possibilities for a management structure for waste flows.

Recycling of mineral fractionIn 2011, the mineral fraction that is released from the shredded waste in the pst facility was still being stored in German salt mines to prevent subsidence. arn is determined to find more sustain-able applications for the mineral frac-tion. arn Advisory will conduct further research into this subject in 2012.

More info www.arn.nl/english/ARN-Advisory/

Our-consultants

arn Advisory is arn’s centre of expertise on every aspect of recycling and reuse of raw materials, auxiliary materials and components. It applies the knowledge acquired throughout the organization for consultancy assignments for internal and external clients relating to sustainability in the mobility sector in general, and recycling in particular. There is a growing demand in the market for arn’s specific expertise, which was reflected in a larger number of external assignments in 2011.arn’s expertise can be divided into four categories:1 Processing, for the recycling of materials2 Chain management3 Legislation and regulations4 Chain modelling and carbon footprint

Ecotest for recycling of batteries and tyresThe Ecotest quantifies the environmental impact of the chain in relation to the most important indicators and provides infor-mation about the relationship between:– Ecology (CO2 footprint)– Raw material retention (recycling)– Economics (costs)

arn developed the model in association with the environmental consultancy FFact. The actual data from the chain produced

by the model helps to underpin decisions relating to sustainability. The Ecotest was carried out in two prod-uct chains in 2011: Batteries In association with Stibat, a survey of the battery recycling chain was started. The study will continue in 2012.Tyres Together with the collective im-plementing organization, RecyBEM, the Ecotest was carried out for the recycling chain for car tyres. One of the most impor-tant conclusions was that the granulation of tyres yields a recycling rate of 80%; this is far more than the 20% recycling rate required by the Car Tyre Management Decree. Furthermore, tyre granulation makes an important contribution to the recycling rate laid down in the End-of-Life Vehicles Management Decree.

The Ecotest can be used in many different sectors. It is also a dynamic model, which means it can be adapted fairly easily to new situations. arn and FFact will organ-ize a seminar to increase awareness of the Ecotest in 2012.

Developments in 2011– First assignments carried out for local

authorities.– Ecotest applied to recycling chains for

batteries and car tyres.– Management structure designed for

Scooter Recycling Nederland.– Cooperation agreement concluded

with rdw to jointly advise other countries on the Dutch deregistration system.

– Attendance at a conference in Russia to help with implementation of recy-cling activities in the country’s vehicle production chain.

– An exploratory study conducted into car dismantling in Turkey for NL Agency.

– The processing of shredder waste and a mass balance drawn up for a German shredder company in the pst facility in Tiel.

arn Advisory Distribute knowledge in the market. Achieving sustainable targets calls for interaction between legislation, economy and tech nology. Recycling must not result in unnecessary energy consumption or higher CO2 emissions. To make the right choices, ever more complex considerations must be made. With that in mind, together with FFact, arn Advisory has developed the Ecotest.

Outlook for 2012– Further application of the Ecotest in

new fields. – Seminar with FFact to increase awa-

reness of the Ecotest and its possible applications.

– Supervision of the design of a car dismantling model unit in Turkey.

– Shredder test with the pst facility in the recycling chain.

– Start of participation in three-year European S_Life-project aimed at ma-king the car industry in Europe more sustainable.

– Research into high-value sales oppor-tunities for the mineral fraction from the pst facility.

– Carrying out of an assignment for the rail sector.

Scooter Recycling Nederland (srn)

There are now more than one million scooters in the Netherlands. Every year, approximately ninety thousand new scooters are sold. The number of end-of-life scooters is also rising; the current rate is around twenty thousand a year. To ensure the environmentally-responsible recycling of these machines, the rai Association and bovag established the srn organization.

thousand scooters


EcotestSustainability toolIncreasingly, businesses are being con-fronted with sustainable business practice. The preservation of raw materials and climate change are important catalysts in this process. Within product chains, choices can be made that will have an environmental impact. Despite all the CO2 tools, ladders and labels developed over the past few years to encourage sustain-able business practice, there are still very few methods capable of quantifying and weighing the full impact of the chain. The underlying question is how throughout its production chain – from the extraction of raw material through to production, consumption and disposal – a business can improve its environmental impact. Ecotest provides the answer. Using Eco test, the impact of production chains can be tested and a range of chain options quantified. This test brings together our expertise on complex chains and knowl-edge of climate, raw materials, recycling and economy.

Ecotest underpins decisionsWith its Ecotest, arn offers a ‘decision support tool’ for policy makers wishing to underpin decisions relating to sustain-ability with practice-based facts about the production chain. The system enables the user to assess an entire chain for the following aspects:– Ecology (CO2 footprint and other indica-

tors such as toxicology)– Raw material preservation (recycling)– Economics (costs)Ecotest makes the impact of the production chain transparent by weighing up these three elements against one another.

Focus on practiceThe test is not an academic study but a practical tool based on practical informa-tion from the chain. Ecotest only makes use of the most essential indicators to underpin any decision. With its tool, arn hopes to help companies better understand the huge range of environmental indica-tors commonly used in a lifecycle analysis (LCA) study. The Ecotest fully complies with the iso standards applicable for carry-ing out lca analyses. Ecotest differs from a static lca study or a CO2 calculation in that it is a dynamic model. Once all data from a production chain have been entered, changes can still be made to the model, thereby making it possible to calculate new situations.

Valuable for lifecycleThe idea to develop the Ecotest arose from a CO2 study carried out by FFact and arn Advisory for the recycling chain for end-of-life vehicles. The aim was to gain an insight into the chain, and in that way make arn a better discussion partner for government authorities and other stake-holders. It turned out that merely optimis-ing CO2 savings was not enough. After all, as well as emission avoidance, arn also has to deal with recycling percentages imposed by legislation and cost limits imposed by manufacturers and stakeholders. The even-tual answer to all these challenges was the Ecotest. It then turned out that other par-ties were interested in the Ecotest tool. arn has formulated the ambition of helping these companies reach a higher position on the various ecological performance ladders like the popular CO2 Performance ladder and the csr Performance ladder. Ecotest is a valuable tool in every stage of the lifecycle.

m3 of air per hourA dust removal installation is responsible for extracting the dust from the factory process and our production hall in Tiel. The machine in fact refreshes a staggering 200,000 m3 of air every hour. As a result, dust emission into the outside air is eradicated entirely, and we keep our working environment clean, to boot. Even the dust is subsequently recycled.

– Problem analysis – Customer wishes– Determination of chain

and options– Translation of customer

wishes

– System definition– Drawing up process model– Data collection– System choices– Establishing calculation

model– Validation

– Effect assessment– Translation of data into CO2

effect, raw material preser-vation, cost efficiency

– Interpretation and evaluation

– Conclusions– Recommendations– Reporting

– Tool made available for customer use

– Data updating– Calculating new chain

options

Identifyingthe approach

Assessment Analysis Presentation Implementation and service

Ecotest

Expertise in sustainabilityEcotest was developed by a team of consultants and thus provides a wealth of expertise:– 15 years of experience with lca studies,

chain analyses and economic analyses.– Much knowledge of and experience

with the waste and recycling market.– Software based on lca software

simapro 7.– Standard database Ecoinvent available– Collaboration with various universities.– Project implementation according to iso 14040.


Appendix

Financial report 2011 Auto & Recycling Foundation 36Goods flow management procedures 38Financial report 2011 arn Management Plan car batteries 39Vehicle fleet development 40Independent assurance report 44

“�Ecotest�led�to�better�organization�of�collection�and�recycling�of�batteries”

Jan Bartels Managing director Stibat

“�For�the�collection�and�recycling�of�batter-ies,�our�focus�is�increasingly�on�the�reuse�of�materials,�for�example�steel,�zinc,�manganese�and�nickel.�Thanks�to�the�Ecotest,�we�have�moved�on�to�the�next�level�in�sustainability,�by�identifying�the�recycling�possibilities�for�the�various�flows,�and�the�related�costs.�Most�aspects�of�battery�recycling�still�cost�money.�� The�Ecotest�has�helped�us�weigh�up�the�climate�effects,�raw�material�savings,�toxicity�or�environmental�burden�and�costs.�The�resultant�parameters�have�helped�us�to�better�organize�the�collection�and�recycling�of�bat-teries.�Some�of�the�questions�that�emerged�were�how�we�can�improve�the�servicing�of�the�22,000�collection�points,�how�our�five�trucks�can�be�used�in�the�most�efficient�way�for�the�collection�of�batteries�in�the�Netherlands,�and�whether�a�smarter�approach�would�be�pos-sible.�The�Ecotest�helps�provide�the�answers.�� Demand�for�recycling�capacity�is�set�to�expand�over�the�years�ahead.�The�Ecotest�makes�it�possible�to�assess�the�sustainability�of�businesses�active�in�the�recycling�market.�Such�assessment�is�also�vital�because�at�some�point�we�will�have�to�look�beyond�the�boundaries�of�Western�Europe.�Together�with�our�colleagues�in�Belgium�and�Germany,�we�have�already�taken�the�initiative�of�establishing�a�European�sector�organization.�Eucobat�will�be�launched�in�April�2012�with�fellow�organizations�from�

eleven�countries,�and�will�offer�an�excellent�platform�for�rolling�out�the�Ecotest�across�Europe.”

35

Totaal2011 Totaal2010

Assets1 Intangiblefixedassets 41,496,933 32,236,831 2 Financialfixedassets 32,539,314 33,307,657 Total 74,036,247 65,544,488

3 Stocks 150,459 55,152 4 Receivables 3,647,424 2,949,641 5 Liquidassets 15,945,086 31,907,237 Total 19,742,969 34,912,030

Totalassets 93,779,216 100,456,518

Liabilities6 Equitycapital 14,521 14,521 Total 14,521 14,521

7 Wastedisposalfeefund 81,305,023 81,551,616 8 Long-termliabilities 11,209 11,209 9 Short-termliabilities 12,448,463 18,879,172 Total 93,764,695 100,441,997

Totalliabilities 93,779,216 100,456,518

Appendix Financial report 2011Auto & Recycling Foundation

Consolidatedbalancesheetasof31december(afterappropriationofresult,ineuro)

balancesheettotal


10 Incomefromwastedisposalfee 23,311,481 11,909,903 11 Incomefrominvestments 690,644 991,884 12 Realizedchangesinthevalueofinvestments -740,238 -63,20613 Non-realizedchangesinthevalueofinvestments -598,693 905,815 14 Otherincome 3,061,301 2,425,699 15 Interestandsimilarincome 255,521 845,106 Totaloperatingincome 25,980,016 17,015,201

16 Costpriceofsale 15,580,970 19,525,438 17 Costsofoutsourcedwork 2,350,985 2,441,694 18 Wagesandsalaries 2,655,516 2,105,297 19 Socialinsurancecontributions 722,291 513,381 20 Depreciationoftangiblefixedassets 4,637,223 4,290,296 21 Otherbusinessexpenses 266,008 130,110 22 Interestandsimilarcosts 13,617 14,301 Totaloperatingexpenses 26,226,610 29,020,517

Operatingresult -246,594 -12,005,316

23 Taxonresult – –

Resultaftertax -246,594 -12,005,316

Consolidatedprofitandlossaccount(ineuro)

operatingincome

TheconsolidatedbalancesheetandtheconsolidatedprofitandlossaccountincludethefiguresforAuto&RecyclingFoundation,arnHoldingb.v.,arnAutoRecyclingb.v.,arnRecyclingb.v.,arnRecyclingServicesb.v.andarnAdvisoryb.v.ThefiguresaretakenfromtheannualfinancialstatementsofAuto&RecyclingFoundationandARNHoldingB.V.,whichwereauditedbykpmgAccountantsn.v.

Notestothe2011financialreport

1 Intangiblefixedassetsarn Auto Recycling b.v. lent drainage installations to 220 (2010: 217) affiliated vehicle dismantling companies. On 3 March 2008, arn Recycling b.v. purchased the land from the Municipality of Tiel and started construction of the pst facility. The building and infrastructure were completed in May 2009. Evaluation of the possible processes led to a definitive choice: the vw-SiCon pro-cess. Following completion of the building and infrastructure, a start was made on installing and building the processing line. The facility went into operation at the end of 2011, and a start has now been made on construction of the 2nd bunker hall. Also in 2011, an erp system was purchased. This system will replace the current system in 2012.

2 FinancialfixedassetsAuto & Recycling Foundation has delegated the management of the investment portfo-lio to a single asset manager. The funds are invested in both bond and share funds. The asset manager has been given a defensive mandate, characterized by investment in bonds and shares. The risks connected with investment are therefore as limited as possible. At the balance sheet date, 32,539,314 euros (2010: 33,307,657 euros) was invested in shares and bonds.

3 StocksStocks consist mainly of spare parts, laboratory parts and trade goods valued at acquisition price, namely purchase price plus additional costs. Any loss in value as at the balance sheet date is taken into account in the valuation of stocks.

4 ReceivablesThe receivables consist mainly of interest to be received and value-added tax that can be reclaimed.

5 LiquidassetsThe cash of the Auto & Recycling Foun-dation, arn Holding b.v. and its subsidi-aries held at ing Bank comes under the notional ‘pooling arrangement’.

6 EquitycapitalThe Foundation’s capital has been paid up by the shareholders rai, bovag, focwa and stiba. Each organization has contributed a proportional share to the capital.

7 WastedisposalfeefundThe waste disposal fees received are deposited in the fund. The fund is used as a reserve for both anticipated and unfore-seen future expenditure.

8 Long-termliabilitiesThe affiliated vehicle dismantling compa-nies have deposited a guarantee for the use of logo signs. As at 31 December 2011, 247 (2010: 251) vehicle dismantling companies had an affiliation agreement.

9 Short-termliabilitiesThe short-term liabilities item covers the income from consumers/dealers who wanted to import their vehicle via the rdw testing stations. The Foundation had to re-ceive the waste disposal fee before the rdw could issue the registration number. Since 1 January 2007, these vehicles have been exempt from paying the waste disposal fee. Advance payments and monies received before 31 December 2006 will not lead to payment of a waste disposal fee. There is a procedure that consumers can use to claim a refund on the payment. In addition, the procedure automatically

covers duplicate payments and excessive payments. Income that is not reclaimed or cannot be repaid because there is insuf-ficient information, is released in favour of the result after 5 years. In 2011, the remain-der of this item of fully prepaid or excess paid waste disposal fee was fully released. arn Holding b.v. forms a fiscal unit for corporation tax with arn Auto Recycling b.v., arn Recycling Services b.v., arn Recycling b.v. and arn Advisory b.v. This fiscal unit has a consolidated off- settable loss. Current account agreements have been concluded with the importers. The waste disposal fee owed is charged each month to the current account. Interest is paid on the outstanding balance each year at the 12-month Euribor rate. The ‘liability to vehicle dismantling companies for materials’ item shows the premium still to be paid to the vehicle

dismantling companies for dismantling, collection and processing. This liability is linked to the outstanding material balances of each company. Outstanding materials balances represent the materials that are still in the end-of-life vehicles that have been registered for dismantling, are in the existing packaging or have already been disposed of but not yet be claimed for. The liability for material is calculated on the basis of the prevailing rates in 2011.

10 IncomefromwastedisposalfeeIn 2011, waste disposal fees were collected for a total of 603,000 (2010: 500,000) newly registered vehicles.

3736arnSustainabilityReport2011


4 Incomefrommanagementcontributions 95,997 108,998 Totaloperatingincome 95,997 108,998 5 Costsofoutsourcedwork 72,103 67,685 6 Dotationreservationmanagementcontributions 23,894 41,313 Totaloperatingexpenses 95,997 108,998

Operatingresult - -

Taxonresult - - Resultaftertax - -

Profitandlossaccount(ineuro)

11 IncomefrominvestmentsThe income from investments in 2011 fell sharply as compared to 2010, due to poorer market conditions.

12 RealizedchangesinthevalueofinvestmentsA loss was made in 2011 due to changes in the investment portfolio.

13 Non-realizedchangesinthevalueofinvestmentsThe investment portfolio is valued at market value as at 31 December 2011. The difference compared to the purchase price, or the market value on 1 January 2011, is recognized as the non-realized change in the value of investments. In 2011, the non-realized change in the value of investments was negative.

14 OtherincomeOther income consists mainly of the proceeds from the sale and purchase of materials and consultancy for third parties.

15 InterestandsimilarincomeThe interest consists mainly of the interest on deposits and savings. The fall in relation to 2010 is due to a reduction in liquid assets in 2010.

16 CostpriceofsaleThe cost price of sale relates mainly to the cost price of purchase, collection, lease of packaging and storage of materials.

17 CostsofoutsourcedworkIn 2011, there were on average 247 affiliated vehicle dismantling companies, which between them dismantled 206,150 end-of-life vehicles (2010: 215,975). The companies are paid premiums for dismantling, col-lection and processing. The maintenance and service of the drainage installations is subcontracted to the companies that installed the systems. Some of the packaging is leased from the collection companies; the rest is the pro-perty of the Foundation. This item includes the leasing costs and the costs of maintai-ning the Foundation’s own packaging. The rdc supplies the data for the col-lection of the waste disposal fee and for monitoring the vehicles registered in orad.

18 Wagesandsalariesarn’s workforce consists of 43.6 ftes (2010: 42.6 ftes). The employees perform work for the Foundation, its subsidiaries and external parties. arn Holding b.v. has a Supervisory Board comprising five members.

19 SocialinsurancecontributionsFrom the moment of entering service, employees participate in the collective pension scheme.

20 DepreciationoftangiblefixedassetsThis item relates mainly to the depreci-ation on the drainage installations that arn Auto Recycling b.v. has lent to the vehicle dismantling companies and the now commissioned arn Recycling b.v. facility. The depreciation charges include any book profit or loss on the sale or return of the installations and any other changes in their value.

21 OtherbusinessexpensesOther business expenses account for the accommodation costs (i.e. the rent, service and maintenance) of the offices at Entree 258 in Amsterdam Zuidoost.

22 InterestandsimilarcostsInterest is paid on the balance held by the importers at the 12-month Euribor rate.

23 Taxonresultarn Holding b.v. and its subsidiaries form a fiscal unit for the purposes of corporation tax.

Financial report 2011 ARN Management Plan car batteries

Total2011 Total2010

Assets1 Accountsreceivable 72,595 39,597 2 Receivables 60,869 69,973 Total 133,464 109,570 Totalassets 133,464 109,570

Liabilities Groupequity - - Total - - 3 Reservationcarbatteries 133,464 109,570 Total 133,464 109,570 Totalliabilities 133,464 109,570

BalancesheetasofDecember31(afterappropriationofresult,ineuro)

balancesheettotal

operatingincome

Notestothe2011financialreportManagementPlancarbatteriesThe figures on the balance sheet and profit and loss account of the Management plan for car batteries are derived from the annual financial statements of arn Auto Recycling b.v.

1 The claim against debtors has a term of less than 1 year.

2 The receivables item consists mainly of management fees to be received.

3 Reserve for car batteries recycling costs still to be incurred.

4 The income from the management fee

consists of collected management fees per car battery type.

5 Costs of outsourced work consist of costs of myBatbase, communication and activities of arn.

6 The increase in the car batteries reserve in 2011.

ExplanatorynotesTable 1 on page 17 shows the volumes of arn materials received and accepted from affiliated collection companies by contracted recycling companies. These quantities are based on reports received from contracted recycling companies concerning the quantities of arn materials received and accepted. The arn materials originate from the dismantling of end-of-life vehicles registered in orad by car dismantling companies affiliated to arn. These car dismantling companies receive a premium for each item of dismantled material.

In the framework of this goods flow management process, Auto & Recycling Foundation has established a system of administrative organization and internal

management procedures with a view to guaranteeing that:– all premiums paid to car dismantling

companies are justified, and– all materials offered by car dismantling

companies are collected by contracted collection companies and accepted for processing by contracted recycling companies.

This system of administrative organiza-tion and internal management procedu-res primarily consists of the following components:– Physical quantity and quality inspecti-

ons at affiliated car dismantling compa-nies, collection companies and recycling companies.

– Implementation of a mass balance inspection during which the quantities of arn materials reported by the car

dismantling companies, collection companies and recycling companies to arn are monitored and matched.

– Maintaining and analysing material re-cords for each car dismantling company on the basis of orad registration, pre-mium payments and physical material quantity inspections at car dismantling companies.

Throughout 2011, kpmg Accountants n.v. investigated the existence and opera-tion of this system of administrative organization and internal management procedures, and the quantities of arn materials accepted for processing, as reported in table 1. For the report from kpmg Accountants n.v. in respect of its activities, please refer to the independent assurance report on page 44.

Goodsflowmanagementprocedures


2011 saw an explosive rise in the number of exported used vehicles. Total exports amounted to 337,245 used vehicles, 35% more than in 2010. arn views this as a very wor-rying development. In 2011, in total 613,457 new passenger cars and light commercial vehicles were sold. This figure itself is 15% higher than the total achieved in 2010. The largest rise in new sales took place in the first five months of the year. Developments in the vehicle fleet are important to arn, since they form a source of information on how many end-of-life vehicles will have to be disposed of over the coming years. arn is broadly responsible for the recycling of all four-wheeled vehicles that may be driven by a holder of a B driving licence and which, fully laden, represent a maximum weight of 3,500 kg. The information on vehicle fleet development in this chapter refers to that part of the vehicle fleet.

VehiclefleetAt the end of 2011, there were in total 8.9 million registered vehicles on the road in the Netherlands. Of those, 8 million fall into the category passenger cars, and 900,000 are light commercial vehicles. The 100,000 vehicle rise as compared to the end of 2010 consists mainly of new registrations via the Dutch importers. The total number of

vehicles imported from abroad in 2011, at 86,679, represented a 12% fall as compared to 2010.

VeterancarsThe average age of the vehicle fleet in 2011 was 8.9 years, slightly higher than the 8.8 years recorded in 2010. At the end of 2011, there were 251,373 ‘veteran cars’ on the road. This represents a 13% rise as compared to year-end 2010. ‘Veteran cars’ refers to the category of vehicles aged 25 years or older, for which no road tax has to be paid.

MarketshareOf the total number of end-of-life vehicles dismantled in 2011, 206,150 were processed via arn, representing a market share of 82.6%. In 2010, the arn share was 86.7%. A number of reasons can be put forward for this considerable shrinkage in market share, namely:– Increase in dismantling under own

management. The number of vehicles deregistered in 2011 as having been dis-mantled under own management rose from 7,573 in 2010 to 10,151 in 2011.

– Increase in orad registrations by busi-nesses also holding a permit for the scrap metal trade.

Vehiclefleetdevelopment Explosive rise in exports of used cars forms major cause for concern. By leakage flows we mean the end-of-life vehicles that disappear from the chain of environmentally-responsible processing. For more than 15 years, arn has been responsible for the recycling chain, which is why it closely monitors this development. Leakage flows represent a substantial financial loss to the sector, as well as generating an unwanted burden on the environment.

End-of-lifevehiclesintheNetherlandsWhenitcomestowastedisposal,thingsarewellorganisedintheNetherlands.Asadensely-populatedcountry,itisessentialthatwasteberapidlyandefficientlyprocessedintonewrawmaterials.Toachievethatgoalwehaveanexcellentinfrastructure,withanetworkofvehicledismantlingcompaniesthatoffersnationalcoverage.ThesituationinTurkey,forexample,iscompletelydif-ferent.Thatcountryhasafarlargersurfacearea,andislessdenselypopulated.Thesizedifferencemakesitimpracticaltoestablishafully-equippedvehicledismantlingcompanyevery60km.Instead,you‘simply’handinyourend-of-lifevehicletothelocalgarage,oreventhenearestpetrolstation.Theend-of-lifevehiclesarethentransportedonwardstoanumberoflargedismantlingandproces-singstations.In2012,arnwillbehelpingtoestablishademonstrationcompany.Bywayofexampletoothers,thiscompanywillbeequippedwiththeverylatesttechnology.VisitorsfromalloverTurkeycanthenlearnaboutthemostefficientandenvironmen-tally-friendlytechniquesfordismantlingandrecyclingcars.


“�Helping�businesses�understand�their�opportunities�for�sustainable�practice”

Marlies Meijer-Willems Consultant arn Advisory

“�arn�has�a�great�deal�of�knowledge�about�recycling,�materials�and�chain�management.�By�sharing�that�knowledge�with�other�sectors,�we�can�contribute�to�improved�sustainability.�Just�one�practical�example�is�organizing�an�Ecotest.�Using�the�Ecotest,�the�company�in�question�gets�to�know�all�the�ins�and�outs�of�its�own�chain�and�knows�for�example�where�each�activity�takes�place.�In�that�way,�we�help�businesses�better�understand�their�own�processes�and�the�opportunities�they�have�to�improve�sustainable�practice.�One�of�our�clients�for�the�Ecotest�is�Stibat,�the�organiza-tion�responsible�for�collecting�used�batteries.�� I�was�trained�as�a�chemist�and�have�also�studied�industrial�ecology.�arn�is�a�company�that�offers�me�the�opportunity�to�employ�a�multidisciplinary�approach,�something�that�perfectly�matches�my�background.�Take�for�example�the�training�programmes�organized�by�arn�to�help�vehicle�dismantling�companies�safely�and�responsibly�remove�batteries�from�hybrid�and�electrical�vehicles.�The�course�not�only�considers�the�technical�aspects�but�also�encourages�the�participants�to�examine�the�applicable�rules�and�regulations.”

At year end 2011, arn had signed coopera-tion agreements with 247 vehicle dismant-ling companies, (2010: 251).

DismantlingIn 2011, a total of 249,607 end-of-life vehicles were dismantled, as compared to 249,008 in 2010. The difference is therefore negligible. The average age of the dismantled end-of-life vehicles, at 16.7 years, was slightly higher than in 2010, when the average age was 16.6 years. In 2011, for the second year, hybrids and electrical cars were registe-red for dismantling. In total, 36 of these different vehicle types were registered for dismantling. In 2010, 21 vehicles of this type were dismantled.

ExportThe number of exported cars rose conside-rably in 2011 to 337,245 cars, as compared to 250,245 in 2010; an increase of 35%. The average age of exported cars was 11.1 years, six months older than in 2010. One explanation for this untrammelled growth in used car export is the export of three and four-year old cars. Owners selling these cars profit from the refund on the bpm purchase tax on passenger cars. In 2011, the export of four-year old cars tripled to 34,875 vehicles, as compared to a total of 11,743 in 2010. arn cannot provide an explanation for the remaining share of the 35% rise in the number of used vehicles exported in 2011. Demand for used vehicles in the export countries has certainly not risen to such a spectacular extent that it could explain the huge rise in export numbers. Analysis of the figures suggests one obvious conclusion: a large number of vehicles is registered for export without ever actually leaving the country. These leakage flows have a nega-tive influence on the environment, since the vehicles in question are dismantled without any supervision by the competent authorities.

Dismantlingandexportbyage2011

end-of-lifevehiclesrecycledbyarn

0 1 2 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ≥25

5,000

20,000

25,000

10,000

15,000

30,000

35,000

40,000

Vehiclesontheroad

carsontheroad

Ageinyears

Number

Export Dismantling

≥25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

10,000

40,000

50,000

20,000

30,000

60,000

70,000

Ageinyears

Number

2009 2010 2011

43

AssignmentThe board of Auto & Recycling Foundation asked us to provide reasonable assurance regarding the existence and operation of the internal management procedures ope-rated by the organization in respect of the goods flow and the payment of premiums, as described in outline on page 38 of the Sustainability report 2011.The board of Auto & Recycling Foundation also asked us to provide reasonable as-surance regarding the figures contained in table 1 on page 17 of the Sustainability report 2011 concerning the quantities of materials collected and accepted for pro-cessing, in accordance with the criteria as described on page 38 of the Sustainability report 2011.

Management’sresponsibilityThe management of the foundation is responsible for the existence and operation of the internal management procedures in respect of the goods flow and the payment of premiums in accordance with the inter-nal management procedures, as described in outline on page 38 of the Sustainability report 2011.The management of the foundation is also responsible for the accuracy of the figures contained in table 1 on page 17 of the Sustainability report 2011 in accordance with the criteria as described on page 38 of the Sustainability report 2011.

Auditor’sresponsibilityWe have conducted our examination in accordance with Dutch law, including Standard 3000 “Assurance engagements other than audits or reviews of historical financial information”.Our assurance engagement is aimed at obtaining reasonable assurance con-cerning the existence and operation of the internal management procedures of Auto & Recycling Foundation during the course of financial year 2011 in respect of the goods flow and the payment of premi-ums as described in outline on page 38 of the Sustainability report 2011. This means that we have issued no judgment on the adequacy of the internal management measures.

Our assurance engagement is also inten-ded to obtain reasonable assurance that the quantities of material collected and accepted for processing, as contained in table 1 on page 17 of the Sustainability report 2011, are correctly reproduced in all material respects, in accordance with the criteria as described on page 38 of the Sustainability report 2011.

The principal procedures for conducting our assurance engagement comprised:– Assessing the existence and operation

of the internal management measures in respect of the goods flow and the payment of premiums in accordance with the description on page 38 of the Sustainability report 2011 by means of interviews with the officers responsible for the goods flow management and the payment of premiums and by means of observations aimed at assessing the operation of the procedures according to the described outline.

– Determining that the quantities of material collected and accepted for processing, as contained in table 1 on page 17 of the Sustainability report 2011, throughout 2011, are correct in all material respects in accordance with the criteria as described on page 38 of the Sustainability report 2011, through a combination of interviews with the officers responsible for the measurement and registration, analytical review of the figures, association testing and substan-tive testing. We performed substantive testing (at random) based on internal and external data.

In our opinion, the assurance information we have obtained is sufficient and appro-priate to provide a basis for our opinion.

OpinionIn our opinion, the internal management procedures in respect of the goods flow and the payment of premiums in financial year 2011, in all material respects, were in place and operated in accordance with the description on page 38 of the Sustainability report 2011.

Furthermore, in our opinion, the quanti-ties of material collected and submitted for processing, as contained in table 1 on page 17 of the Sustainability report 2011, are cor-rectly reproduced in all material respects, in accordance with the criteria as described on page 38 of the Sustainability report 2011.

’s-Hertogenbosch, 24 May 2012

kpmg accountants n.v.R.P.A.M. Engelen ra

Independentassurancereport To the board of Auto & Recycling Foundation


arn is in charge of the recycling of end-of-life vehicles in the Netherlands.arn Sustainability Report 2011

focus on sustainabilityFor the production of new goods, it is essential that the raw materials comply with certain quality requirements. This also applies to materials produced from waste. Compliance with the customer’s specifica-tions is an absolute requirement for our pst facility. All material flows produced in the facility are therefore analysed in our own laboratory, both chemically and in terms of their composition.

On behalf of the manufacturers, arn is responsible for achieving 95% recycling of cars by 2015. The pst facility plays an essential role in achieving that recycling percentage. With a focus on continued progress, arn is helping to ensure a sustainable future.

sustainability report 2011

Documents

vision arn

arn recyclingintegration

arn auto recyclingfocus

sustainability report

recycling market

auto recycling foundation

recycling of end

recycling percentage