Bobby Triesch

The History and Future of
Auto Shredding
Presented by: Bobby Triesch
72nd Annual Convention & Exposition Charlotte, NC
Introduction
 My name is Bobby Triesch
 Vice President of Operations of Newell Recycling, LLC
headquartered in Atlanta, Georgia
 Newell is a family business started by my grandfather in 1937
 We operate 5 auto shredding plants in the SE USA: three 6000 HP
120” Newell Mega Shredders, as well as two Harris 98” shredders
 In my 30 years in this business, I have been involved with the
installation of 12 automobile shredding plants.
• Today, I am going to attempt to tell
you about the history of the
development of the automobile
shredder, the current situation and
technology, as well as the future
outlook for the shredder industry, and
how that may impact the Auto
Dismantling and Parts Industry.
How Did Shredding Change the Recycling
Industry?
 Shredding changed recycling for some of the following
reasons:
– Until shredders existed, recycling of old automobiles
required open burning or extensive hand stripping to
remove the seats, upholstery, etc. (approximately 25%
of the weight) from the automobile before shearing or
baling.
– It was also difficult to process appliances because of
insulation, and other contaminants.
The Introduction of the Automobile Shredder
Changed the Recycling Industry
– Because of stronger and smarter shredders, it became
possible to shred heavier scrap including baled sheet
iron, all #2 HM and much of the lighter grades of #1
HM.
– Shredded steel scrap is more cost effective to use in
furnaces because of consistency from melt to melt.
– Shredded steel scrap is more energy efficient to melt
than other types of scrap.
The introduction of the shredder changed the recycling
industry around the world.
• In 1969, my Grandfather, Alton S. Newell, Sr. was
awarded two Patents by the United States Patent Office.
• US PATENT # 3482788 A for the Hammer Mill
• US PATENT # 3482789 A for Hammers for Mill
United States Patent Office
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US PATENT # 3482788 A
Hammer Mill
Date of Filing March 18, 1965
Date of Issue: Dec. 9, 1969
Inventor : Alton S. Newell
726 Probandt, San Antonio, Texas 78204
United States Patent Office
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US PATENT # 3482789 A
Hammers for Hammer Mills
Date of Filing March 30, 1967
Date of Issue: Dec. 9, 1969
Inventor : Alton S. Newell
726 Probandt, San Antonio,
Texas 78204
The First Newell Shredder
The Introduction of the Auto Shredder Changed the
Recycling Industry around the World.
• In 1994, The American Society of Mechanical Engineers,
designated the Newell Shredder as a the 111th National
Historic Mechanical Engineering Landmark.
• This award is given to inventions and developments that
change an industry. “An ASME Landmark represents a
progressive step in the evolution of mechanical
engineering.”
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• This award was given because it changed the
way that an entire industry operates all around
the world.
• From the time before Shredders to the time
after the introduction of modern shredding
plants, the industry has been significantly
changed.
Typical shredder as invented by my Grandfather, Alton Newell
• Shredding changed recycling for some of the following
reasons:
– Steel Mills began to compute “Value in Use” which
measures the total benefit of the use of shredded
scrap in the steelmaking process.
– This starts with the cost of the shredded scrap being
delivered to the furnace but continues with analysis of
power costs, refractory life, electrode cost,
consistency of melt, and ease of handling and more
dense charging into the furnace, reducing back
charge requirements.
How Did Shredding Change the Recycling
Industry?
In 1960, there were no scrap steel shredders in
operation and lighter grades of scrap were being
prepared for use as raw material for steel making
by shearing or baling.
In 1990, there were about 200 shredders in North
America shredding about 10,000,000 tons of
scrap.
By the year 2000, there were still about 200 shredders
operating in America, but they were now processing about
20,000,000 tons of scrap by shredding.
At the end of 2011, there were more than 300 shredding
plants in America processing approximately 35,000,000
tons of scrap.
American production of new steel for about 10 years has
remained at about 100 million tons and the amount of
scrap produced in America is about 75 million tons. This
means that about 75% of all new steel produced is from
scrap and that 35% to 45% of all scrap produced in
America has been shredded.
Shredded steel scrap has many advantages over other types of
scrap particularly when used in an electric furnace because:
• 1) There is a high yield of hot metal as a ratio of
input shredded scrap.
• 2) The chemistry of the hot metal is more uniform
heat after heat.
• 3) The good density means there are less back
charges in order to reach furnace capacity.
• 4) There is less electrode breakage.
• 5) There is longer furnace lining life.
• 6) There is less sulfur in the hot metal.
• 7) There is less phosphorus in the hot
metal.
• 8) There is less electric consumption per ton of
hot metal.
 9) There is less air pollution.
 10) There are less hot spots in the furnace.
 11) When shredded scrap is mixed with
other feed stock the shredded scrap fills the
voids providing a more dense mix.
 12) Shredded scrap lends itself to better
material handling techniques.
Today
 There are about 850 scrap steel shredding plants
operating throughout the world.
 There are about 300 shredders in the USA, but
approximately 100 of those are currently shuttered due
to poor market conditions.
 These plants range in size from huge shredders that
utilize 10,000 HP on the main motor down to much
smaller shredders utilizing as little as 500 HP.
Shredder Sizes & Capacities
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60” shredder w/1000HP @30 TPH
72” shredder w/2000HP @80 TPH
80” shredder w/3000HP @110 TPH
96” shredder w/4000HP @140 TPH
120” shredder w/6000HP @180 TPH
124” shredder w/8000HP @260 TPH
Technical Specifications of
Shredders, Rotors and Motors:
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Rotor Speeds
450 RPM
500 RPM
60 SXS
Hammer tip speed 80 mph
89 mph
or in feet/ minute
7,065
7,850
Kinetic Energy of rotor* 1,810,000
2,230,000
80 SXS
Hammer tip speed
108 mph
120 mph
or in feet/ minute
9,428
10,475
Kinetic Energy of rotor* 7,610,000
9,390,000
98 SXS
Hammer tip speed
131 mph
146 mph
or in feet/ minute
11,547
12,830
Kinetic Energy of rotor* 12,030,000 14,850,000
120 SXS
Hammer tip speed
160 mph
178 mph
or in feet/ minute
14,130
15,700
Kinetic Energy of rotor* 38,300,000
47,400,000
124 SXS
Hammer tip speed
160 mph
178 mph
or in feet/ minute
14,130
15,700
Kinetic Energy of rotor* 41,364,00
51,192,000
600 R PM
720 RPM
107 mph
9,400
3,220,000
128 mph
11,300
4,630,000
143 mph
12,570
13,520,000
171 mph
15,080
19,470,000
175 mph
15,400
21,380,000
210 mph
18,475
30,790,000
214 mph
18,800
68,200,000
256 mph
22,600
82,000,000
214 mph
18,800
73,656,000
256 mph
22,600
106,056,000
Today
 Shredding is much more efficient than
previous methods of scrap processing such
as torching, shearing or baling.
 New modern computer controlled, much
stronger shredders, are able to process a
much wider range of raw material efficiently.
 This means heavier scrap and more
contaminated scrap is now being processed
than was ever possible in the past.
The largest shredder in the world is at the Fengli Group in
Xuzhou, China.
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This is believed to be the largest, highest producing shredding plant
in the world.
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It features more than 400,000 square meters (about 100 acres) of
250 mm thick (10 inch) concrete, 17 weigh bridges of 100 tons
capacity each to handle the incoming and outgoing truck traffic, 35
hydraulic cranes, 4 very large bridge cranes and a 10,000 HP 124
SXS shredding plant capable of processing more than 1,000,000 tons
of shredded scrap per year.
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The plant is also scheduled to process about 500,000 tons of heavy
melting scrap per year.
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The total investment for this plant will be the equivalent of
$100,000,000 dollars.
124 SXS Shredding plant with 10,000 HP capable of producing more
than 1,000,000 tons per year of shredded steel scrap.
The plant features a split downstream before the magnetic
separation and then a further split to 4 picking conveyors
before the final stacking conveyor.
Final stacking conveyor which in this picture has
more than 500 tons per hour being carried.
This plant has an extensive collection system for
the non ferrous metals which will be processed off
line from the shredder plant.
Types of scrap that will be shredded:
Early morning trucks waiting to be unloaded
Newell Recycling of Savannah – installed in 2008.
6000HP 120” x 104” MEGA Shredder
120” Shredder
120” Shredder
Rotors for 120” Shredder
124” Shredder
New Hammers
Used Hammers
Current Situation
- We are facing many problems and challenges today in the
scrap processing and metals industries.
- An over valued US Dollar, in spite of running deficits that
would make other failing countries jealous. It seems that
people keep the value of the dollar up because America still
seems to be the safest place in the world to invest. The
results of an overpriced US Dollar are lower scrap prices.
- There seems to be more supply than demand for steel scrap
as the American and the world economies continue to
struggle with declining rates of GDP.
Current Situation
- Then, the push against “climate change” is leading to
more and more regulations about how our industry
and our customer’s industries can operate. This adds
to costs without adding tangible value.
- In addition, it is becoming more and more expensive
to hire workers in the USA because of government
mandated rules and the demotivating effect of
generous unemployment and welfare benefits of not
working. It is tough to increase productivity.
Current Market Conditions
• The US and World Commodity Markets are in
turmoil, with prices dropping substantially.
• Iron Ore & Steel
• Aluminum & Copper
• Oil
Iron Ore
• The “Big 3” Iron Ore miners are mining Iron Ore,
mainly in Australia, at rates significantly above
demand, which has caused Iron Ore Prices to
drop from over $100/ton to around $50/ton. This
has caused finished, semi finished and scrap
steel prices to fall.
Steel
• Finished & Semi Finished Steel is being exported from
China and being sold throughout the world at below the
cost to produce steel in many countries.
• China is producing over 800M tons of steel in 2015
• China will export more than 100M tons in 2015, or the
equivalent of the entire US Steel industry.
• Rebar trading for around $300/ton
• Shredded Steel around $190/GT delivered to Steel Mills
Steel
• Turkey is the largest consumer of US
ferrous scrap from the East Coast. Current
prices for 80/20 mix ferrous are now down
to $165/GT FAS, which is less than
shredders were paying for scrap
automobiles just recently.
Non Ferrous Metals from Shredders
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Zorba – Aluminum/Copper/Zinc
Zurich – Stainless/Copper
Twitch – Aluminum
Zebra – Stainless/Zinc/Copper
• Pricing has fallen approximately 30% in 2015, with
further drops likely.
Oil
• Technology Improvements: Fracking and Horizontal
Drilling changed supply & demand, substantially.
• USA is now an Oil & Gas net exporter
• Many wells have been mothballed in the Eagle Ford and
Bakken shale formations, where production costs are @
$40-50/barrel
• Effect on Plastics Pricing
• What can we do to survive and prosper?
• The following slides show some of the
things we are doing at Newell Recycling….
Shredder Operating Best Practices
& Survival Strategies
1. Safety
2. Smart Shredding System
3. Benchmarking
4. Casting Consumption/Optimization
5. Downtime Analysis
6. Bottleneck Identification & Elimination
7. Preventative & Predictive Maintenance
8. Maximizing Non Ferrous Recovery
Safety
• In the shredding industry, (and the used auto
parts/dismantling business), we must have a constant
focus on operating in the safest manner possible.
• Identifying safe, as well as potentially unsafe conditions.
• Communication & Training
• Owners & Managers must lead by example
Smart Shredding Systems(SSS)
• SSS does two things
• It controls the feeding function
• It provides management data to guide
continuous improvement
Main Control Monitoring Screen (System Running)
Benchmarks
• ROI for plant
• Tons of production per hour, scheduled hour and completed
hours.
• Density of shredded steel scrap
• Man hours per ton
• KWh per ton at main motor
• KWh per ton for plant
• Pounds of wear parts per ton
• Casting costs per ton
• Life of hammers, liners and grates expressed in tons or output
shredded steel scrap
Benchmarks
• Up time / down time (definition of down time)
• Reason for downtime by category
• Cost for rotor by ton, includes rotor, hammers, pin shafts,
rotor caps or pin protectors.
• Shrinkage of input material compared to output
• Cost for disposal of waste material
• Non ferrous metal produced per ton of shredded steel scrap
produced
• Bearing temperatures for rotor and for motor
• Winding temperatures for motor
• Safety Accidents / man hours
On downtime event the operator can select the category type of downtime
On downtime event the operator can log the cause when a material problem is
the reason of downtime
On downtime event the operator can log the cause when an operation mistake
or failure is the reason of downtime
On downtime event the operator can log the cause when a casting failure or
problem is the reason of downtime
On downtime event the operator can log the cause when an electrical failure or
problem is the reason of downtime
On downtime event the operator can log the cause when a mechanical failure
or problem is the reason of downtime
The Maintenance Room screen allows the operator to enable pendant for
maintenance and also enables all screens for maintenance monitoring
The Maintenance Settings screen allows the operator to setup the low and
high level alarms of running hours of each motor, drives, gear box, bearings
and hydraulics.
The Casting Category screen selector allows the operator to navigate
through all casting wear life screens of the shredder
The Wear Life Settings screen allows the operator to set limits for low and high
level alarms of wear life for each casting of the shredder.
The Grates and Large Castings screen monitors the life of each casting and
gives alarms based on the settings on the Wear Life Settings screen
Bottle Necks
• Bottle necks are things in the shredding process that restrict the flow
of material and therefore reduce the overall productivity of the plant.
• Examples are:
• Insufficient crane power to load enough material onto the infeed
conveyor
• Insufficient capacity in the down stream conveyors
• Insufficient magnet size to effectively separate and produce
clean shredded steel scrap.
• Insufficient air system size or capacity to effectively make the air
separations to produce clean shredded steel scrap.
• Other causes for delay that are bottlenecks.
Bottle Necks
• Of course, when one bottle neck is identified and
modified, there will be a new bottle neck somewhere
because we are defining bottle neck as being the point in
the shredding process that limits the amount of material
that can be processed.
• Our Goal is to make the final bottle neck to be the
available horsepower, and to always try to use all of the
horse power available all of the time.
Maximize the separation & recovery of non-ferrous
metals from the waste by-product material.
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New separation systems allow shredding operations to make a better separation
of non ferrous metals from the waste stream that results when steel scrap is
shredded.
New separation systems allow a much better recovery of non ferrous metals
because of tremendously improved recovery of very small particles, typically
referred to as “fines” and because of better techniques for recovery of small
copper wires, which in the past were not possible to recover.
There are also possibilities for better identification of the types of metals
available and better methods of separating those metals from each other.
Separation and recovery of plastics and other non metals have a real possibility
of adding to the value created when shredding plants are operated.
Anything that increases the value added when processing scrap adds to the
profit.
“Grandma’s Rules”
A friend of mine that owns a scrap metal company delivered a speech awhile ago where he talked
about his philosophy of running a business. He said that they had four basic rules, and that everyone
in the company knew, understood and could repeat these four rules. He called them “Grandma’s
Rules”, and I wanted to share them with you.
1:
Everything has a place, and everything should be in its place.
Meaning things should be neat and orderly, and well maintained.
2:
Never go to the kitchen empty handed.
Meaning concentrate on efficiency and effective material handling.
3:
It’s easier to be nice than nasty.
Meaning concentrate on good customer service and relationships. Remember the golden
rule: Treat others as you would like to be treated.
4:
Better to be safe than to be sorry.
Meaning safety is everyone’s responsibility, as is maintenance. Good equipment needs to
be properly operated and properly maintained in order to remain good and productive.
Survival Strategies
• Many of these “survival strategies” are
applicable to the auto dismantling business.
• “If it is worth doing, it is worth measuring”
Looking Forward…
• Price Differentiation for Whole Cars vs. Car Hulls
– Whole Cars: 64% Ferrous & 6% Non Ferrous
– Hulls: 53% Ferrous & 2% Non Ferrous
• We have been getting pricing requests for whole
cars, versus hulls…so that dismantlers can save
the time/effort of pulling motors, trannies, wire
harness, etc. and get better pricing for cars.
Looking Forward…
• Automotive Cast Iron Pricing
– Brake Rotors & Drums
– Iron Transfer Cases
– Clean Motor Blocks
• Premiums of $30-40/ton over shredder feedstock price
exist for cast iron, if segregated.
Looking Forward…
• Other Automotive Items that if removed, will increase
the value to the shredder (and your price)
– Plastic Bumpers
– Plastic Fenders
– Windshields, Rear and Side Glass
• Consistency of supply quality is critical
Looking Forward…
• Irony Aluminum
– We typically buy 5 grades of irony aluminum:
20%
35%
50%
65%
80%
0.10/lb
0.17/lb 0.23/lb 0.30/lb 0.37/lb
• Don’t discount the core values by shredders
Looking Forward…
• There will be further improvements in the separation of non-ferrous
metals & plastics from the waste material.
• X-Ray Fluorescence (XRF) Separation
• Near Infrared (NIR) Separation
• Separation and recovery of plastics by polymer.
• Waste to Energy technologies, such as Pyrolysis.
For the best interest of all of us, I hope that in 2016 we can elect people to go to Washington
that will focus on supporting American businesses, so that we can get back to growing our
economy and providing the opportunity for a better future for our children, families and Country.
Acknowledgments
• I would like to express my sincere thanks and appreciation to my
uncle, Scott Newell, the President of Newell Recycling Equipment,
LLC for his assistance in supplying information, data, photos and
other materials used in making this presentation.
• Newell Recycling Equipment, LLC – Focuses on the Engineering
Designs, Sales & Supply of Scrap Shredders, Processing
Equipment and Replacement Parts
• Scott Newell, Jr. • 915.276.3900 • [email protected]
Thank you for inviting me to speak with you this
year.
QUESTIONS?
• If you have additional questions for me that you think of later, or
are interested in more information, you can access my website at
www.ShredderDynamics.com
• Cell 404-557-9157 or via email [email protected]
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