ArcelorMittal Waste Solution: Kamps Inc.
ArcelorMittal Waste Solution: Kamps Inc.
Edsgn 100 Section 9
Submitted by: Christine Guza, Michael Lynen, Sitao Xu, Nicole Lawrence
Submitted to: Xinli Wu
Submitted: May 4th
This report includes the design approach for the recycling of waste materials from
ArcelorMittal’s steel production facilities. After production, the company is left with an
excess of unwanted wooden pallets, steel drums, and refractory bricks. Through
collaboration and research, the team was able to find a sustainable solution that is not
only profitable for ArcelorMittal, but also environmentally friendly.
Table of Contents
Abstract (page ii)………………………………………………………….……………….……..All members
Table of Contents (page ii)…………………………………………………………….…….......All members
Introduction (page 1)…………………………………………………………….…………… Michael Lynen
Description of Design Task…………………………………………………………….………. All members
Problem Statement (page 1)
Mission Statement (page 1)
Design Specification (page 1)
Design Process / Approach………………………………………………………………… Nicole Lawrence
Gantt Chart (page 2)
Concept Generation / Rationale (page 3)
Design Matrix (page 4)
Description of Design Selected (page 4)
Prototype / Model……………..…………………………………………………….……… Nicole Lawrence
System Diagram (page 5)
Prototype Image (page 6)
Design Features (page 6)
Analysis………………………………………………………..…………………….……….. Christine Guza
Assessment of Waste Diverted (page 7)
Concept of Operations (page 7)
Life Cycle Assessment & Assessment of Important Aspects (page 8)
Economic Viability (page 9)
Summary, Conclusion, Acknowledgement & References (page 10)……………………....….Michael Lynen
Attachments (page 11)……………………………………………………………………..…… All members
In the steel industry, industrial processes create large amounts of waste
byproducts such as excess wooden pallets, steel drums, and broken refractory bricks.
ArcelorMittal, one of the largest steel producers in the world, must deal with these waste
byproducts in a non-profitable and unfriendly manner to the environment: dumping them
in a landfill. The problem ArcelorMittal presented was that they need a sustainable way
to reuse or recycle these materials, and it should be economically viable and not harmful
to the earth. The team defines sustainability as the ability of an object or idea to remain in
a functional state for an extended period of time. The solution solved the problem of
excessive pallets left over: contact Kamps Inc. who will purchase and retrieve the pallets
from ArcelorMittal sites. Kamps will then inspect and refurbish used pallets for resale to
other companies and even other industries, promoting a longer life cycle for every pallet.
Kamps will even accept broken pallets, which they break down into woodchips for use in
landscaping and other industries. The design team created a prototype, which clearly
demonstrates the entire process.
Description of Design Task
Problem Statement: The problem is that ArcelorMittal has a high waste
production level of waste refractory brick, wood pallets from material delivery,
and empty chemical drums left over after steel production.
Mission Statement: The mission is to find a way to recycle waste refractory
brick, wood pallets from material delivery, or empty chemical drums that are left
over after steel production.
Design Specifications: The system must be environmentally friendly, profitable,
efficient, and sustainable.
o Focus: The focus of the project was the wooden pallets.
o Scope: The system will apply to ArcelorMittal’s factory in Burns Harbor,
IL, but can be applied to other factories as well.
o Hypothesis: 100% of pallets will be recycled when this system is utilized.
Design Process / Approach
Table 1. Gantt Chart
The table above demonstrates how the team organized the time provided in order to
complete each portion of the project.
Concept Generation / Rationale
The team had multiple ideas to be evaluated in the design matrix. The first idea,
developed by Michael Lynen, was to build a chemical factory near the Steelton, PA
location. The factory would supply all chemicals necessary in the steel production
process, eliminating the steel drum supplier and allowing for consistent reuse of the
chemical drums. The second idea, developed by Nicole Lawrence, was to convert the old
wooden pallets into woodchips for composting. This would require extra preparation of
the pallets since they currently have metal nails in them, so the team would have to
devise a system for removing these nails before the pallets can be converted. The third
idea, developed by Christine Guza, was to sell the refractory bricks to the government
and use them for concrete work. This would bring a profit to ArcelorMittal and will allow
for the reuse of all refractory bricks. The fourth idea, developed by Christine Guza, was
to utilize the energy created from burning wood to supply power to the factory. This idea
is cost effective but is harmful to the environment because of the pollution created. The
last idea, developed by Nicole Lawrence, was to sell the wood to a nearby wood shop
called Kamps Inc.. This would reduce landfill waste and provide a profit to
Table 2. Design Matrix
The design matrix demonstrates the judging process of the five designs chosen
compared to the current removal method (landfill). From the design specifications given,
it was decided that the most desirable system would be profitable to ArcelorMittal,
environmentally friendly, and efficient. Also, the material chosen should be easy to
prepare for disposal, and the transportation costs should be at a minimal level. After
careful consideration of each system, the team found that selling the excess wooden
pallets to Kamps would be the best method of waste removal.
Description of Design Selected
Kamps Inc. is a reputable company from Niles, MI that specializes in the
production of pallets to be sold to companies around the world. Not only does Kamps
make pallets, but they also refurbish old pallets provided by various businesses. The
system is quite simple. Kamps will drive to ArcelorMittal’s factory in Burns Harbor
(approximately an hour long drive). Here they will pick up the used or broken pallets and
will provide a payment to ArcelorMittal in exchange. Kamps will then transport the
pallets back to their shop and will inspect them for their quality. If the pallets are in
relatively good condition, they will be refurbished and resold to other companies in need
of pallets. The pallets that are considered unusable will be broken down into mulch and
later used for landscaping work. In the end, both companies will be left satisfied;
ArcelorMittal will make a profit from the exchange, and Kamps will make a profit by
reselling the old pallets.
Prototype / Model
-Used/broken pallets are provided by
ArcelorMittal in Burns Harbor, IL
-Transportation for pallets provided by
Kamps (recycling company near by)
-ArcelorMittal organizes pallets based on size and condition to be
-The two companies must coordinate the time and day of pickup
-Kamps drives to the ArcelorMittal site from Niles, MI
-The Kamps truck will then transport the pallets back to their shop
-Kamps inspects pallets for quality
-Used pallets that are in good condition are refurbished and resold to other
-Unusable pallets are scrapped and disposed of properly, reducing landfill
-Other ArcelorMittal locations can
ship their pallets to the nearest
steel factory that Kamps will pick
up from. This may not be as
profitable, but they will still be paid
for pallets. Transportation would
still be necessary to move to
landfill, should come close to
-Newly refurbished pallets
-Broken pallets are scrapped for
-Payment for any pallets that are 48x40
inches and in usable conditionis given
-Reduced landfill waste
-Pollution from extra transportation of
-Fewer trees will be cut down to be
used for pallets
Fig 1. above describes what inputs, outputs and processes are involved in this system.
The team recognizes that this system is relative only to ArcelorMittal’s Burns Harbor
location. As a globalizing idea, pallets can be shipped from various ArcelorMittal
factories to Burns Harbor in order to be picked up by Kamps, though this will increase
Fig 2. shows a picture of the system’s
prototype, a simple model of
ArcelorMittal, Kamps, and road
connecting the two companies
One of the most prominent features of this system is its profitability. Kamps is
willing to provide transportation for the pallets at no cost to ArcelorMittal. They will pay
three dollars for each pallet that is 48”x40”. Other pallets that don’t fit these
specifications will be purchased for fifty cents each. ArcelorMittal currently has
thousands of wooden pallets, therefore there profit will be substantial. Another feature is
its ease of material preparation. Kamps does not require that ArcelorMittal prepare their
pallets in any way: they will accept them as they are. Lastly, an important feature of
utilizing Kamps’ services is recycling efficiency. Kamps is willing to accept all of
ArcelorMittal’s pallets. This means that 100% of the pallets that would originally be sent
to a landfill will be recycled into either new pallets or mulch. It simply cannot get any
better than that.
Assessment of Waste Diverted From Landfills
As of right now, all of the pallets that ArcelorMittal uses for shipment are
disposed of in landfills. These pallets take up valuable landfill space and are a waste of
natural resources. With the team’s alternative disposal method, all the pallets can be
recycled in some way, whether it is as refurbished pallets or as mulch. This means 100%
of the waste will be diverted from landfills and back into use.
Concept of Operations
The objective of our system is to transport the used wooden pallets from
ArcelorMittal’s factory in Burns Harbor, IL to Kamps Wood Shop in Niles, MI so they
can be either refurnished and resold to other companies or properly disposed of. There
are few restraints for this strategy, but one minor issue is transportation of the pallets.
Kamps has mentioned that they will provide transportation for the pallets, though they
may not provide it entirely for free. Also, the company will provide a payment for
ArcelorMittal’s pallets only if they fit certain requirements. GMA pallets that are at least
48”x40” in area can be reused by Kamps. Any other pallets will be taken at little to no
ArcelorMittal and Kamps will interact during the exchange of the pallets and
money. Kamps’ transportation workers will drive to Niles, MI and will move the pallets
from ArcelorMittal’s facility into their trucks. Kamps will then provide a monetary
compensation to an ArcelorMittal employee. Once this is complete, the interaction
between the companies will end.
The operational processes of this system are quite simple. ArcelorMittal first must
organize the time and day in which Kamps will come to their factory. Once that is done,
ArcelorMittal’s only task is organize their pallets by size, placing 48”x40” pallets in an
area separate from the rest of the pallets. Kamps has a continuous need for pallets, so this
process can be repeated whenever ArcelorMittal has an excess of used pallets.
Life Cycle Assessment
Fig 3. Life Cycle Analysis
Pallets for industrial shipment are made from mass amounts of trees. These pallets
are then used by ArcelorMittal’s supply companies to transport materials needed for the
steel making process. Normally, when ArcelorMittal finishes with these pallets they are
sent to a landfill. But, as the diagram above shows, these pallets can instead be
transported to another company, Kamps Inc., who specializes in recycling used pallets.
Pallets are sorted by Kamps depending on size and quality. Anything that can’t be
salvaged will be scrapped and turned into mulch that can be purchased by landscaping
companies. Pallets that pass the inspection will be refurbished and sold back to
companies, like ArcelorMittal’s suppliers, to be used in industrial transport. Thus, the
current cradle-to-grave method used by ArcelorMittal is transformed into a cradle-tocradle system by recycling the used pallets. Although this particular system was
designed for the ArcelorMittal site in Burns Harbor, the design team believes that the
same recycling system could be adopted by many other ArcelorMittal locations.
Economic Viability of the System
The team foresees that the system could be economically profitable to
ArcelorMittal. Kamps Inc. will pickup pallets from any establishment within a certain
distance, eliminating the transportation cost of taking pallets to a landfill. Also, Kamps
will pay for certain sized pallets, the most profitable being pallets that are 48”x40”. The
team believes that the ArcelorMittal located in Burns Harbor, IL would be able to make a
decent profit selling to the Kamps in Niles, MI.
Kamps also has other locations in the Midwest region of the country and many
ArcelorMittal sites are within a two-hour driving radius of these locations. Factories in
other locations will have to pay to transport their pallets to Kamps, however many could
probably break even on costs after selling their used pallets.
Summary and Conclusion
The group was presented with the problem of finding a solution for the disposal of
waste materials at ArcelorMittal’s steel plants. The waste materials are wooden pallets,
steel drums, and refractory furnace bricks. The team was also attempting to create a
solution that was economically viable and environmentally friendly, ensuring the
reduction of waste that is sent to landfills. The group developed many possible solutions
and chose the best one after evaluation in a design matrix that checked for many criteria,
such as sustainability, environmentally friendliness, and profitability. The group created a
prototype that demonstrates the process on a small scale. The solution was selling used
and broken pallets to Kamps, who refurbishes old pallets and recycles broken pallets into
landscape mulch. These are then resold to other industries, allowing for sustainability of
the pallets. This solution provides economic viability as ArcelorMittal gains a profit and
also offers environmental aid because this process reduces the amount of pallets that go
Benjamin Visnesky for assisting the team in concept generation
ArcelorMittal for sponsoring the project
Kamps for providing the team with information about their shop
"Kamps Pallets." Kamps Pallets. Kamps Inc., 2014. Web. 02 May 2015.
"First Year Engineering Design." SEDTAPP- Engineering Design Program.
ArcelorMittal, n.d. Web. 02 May 2015.