Firms highlight import of not exporting

By Amanda Smith-Teutsch

March 1st, 2010

Electronic waste is an ever-growing waste stream in the United States: In 2007, the U.S. EPA estimated 3 million tons of e-waste was generated in the country, with an estimated 234.6 million televisions, computers, printers, computer monitors and other equipment in storage in U.S. homes.

"In our first month we recycled 10,000 pounds of e-waste," said John Shegerian, CEO of Electronics Recyclers International. That was in 2004, before the invention of many of the latest and greatest gadgets hit the market. "Last month we processed 15 million pounds of e-waste. It's somewhat overwhelming. When we started, there was no Kindle, there was no iPhone, and there was no 3D television. There is this constant new wave of cool toys, gadgets and business tools every year that is not going to slow down."

Shegerian's business was recently tapped by the Koo family of South Korea, founders of LG Electronics. They have become investors in Shegerian's company and purchasers of the copper refined in his Fresno, Calif., facility and other plants. Their company, copper smelter LS-Nikko, is using ERI as an urban mining source for the copper it needs to produce electronic components, telecommunication wires and other products.

"Proper waste management is not just a business option any more, but one of the compulsory requirements of mankind," said Dr. S.W. Kang, President and CEO of LS-Nikko. "Everyone should try to reduce waste, and all waste should be managed safely and with the right environmental processes in place. With this in mind, I think we have to consider the recycling business as a public utility rather than a commercial profit center."

Shegerian said the South Korean company spent several months examining his seven facilities, all located in the United States, before deciding to become investors.

"The company took time to make sure everything was being done right," Shegerian said. "They explained to me how world's resources and ore mines are diminishing, that urban mining is the future."

Many of the electronics sent for recycling are simply exported, he said.

"The dirty little secret that no one talks about is that only about 10% of the recycling going on in America is really recycling; 90% of what is called electronics recycling is fact packing and illegally exporting," Shegerian said. "There's no reason for this. Shame on us as a country and as consumers. It's being stacked and packed on ships to China and India and Africa."

The problem could get worse as producer take-back laws and landfill bans are enacted across various states, some recyclers say.

Terry O'Malley, CEO of TOMA/PMI, is building a new electronics recycling facility in Dallas that will process 25 tons of electronic waste material a day at the 35,000-square-foot facility.

"No one wants electronic waste in landfills," O'Malley said. He pointed to rapidly growing bans in states that place fines on those found guilty of landfilling electronic items and in other states where producers are required to collect and recycle obsolete electronics.

"There [have] to be companies out there that are going to have some format to accept it," O'Malley said. "We are going to be the release valve that helps dispose of that collection without having to export it to China, India, South America. China, India and other countries are saying they don't want it anymore. We have too much of it, we don’t know how to manage it, and it's becoming an environmental problem. It's all being exported. We want to cut the export link off."

When operational later this year, O'Malley's facility will accept electronic waste and produce pure precious metals that can then be used to make semiconductors, circuit boards and processors for new computers, phones and consumer electronics.

With increased awareness and exposure, Shegerian said the tide could change on the exporting problem.

"This is an industry still in its infancy," he said. "Now we're garnering media and political attention. Maybe five years from now we can say that 40% or 50% is being exported instead of 90%."

The problem won't solve itself, O'Malley said.

"There has to be a solution to manage this constant stream of material," he said. "The electronics industry isn't going to die down. The technology will increase and become more efficient."