Scarcity of raw materials companies is under pressure

German industry uses its own recycling potential is not fully

(Ddp direct) Berlin, October 14, 2010 - In order to avoid a serious
under-supply of important raw materials, the German industry is far
too little attention to recycling. This is the result of a recent
study conducted by the Forsa Institute, which was carried out on
behalf of the Reverse Logistics Group (RLG) based in Dornach. RLG is
holding one of the leading specialists of reverse logistics in Europe.
The study found only 35 percent of 100 surveyed operate metalworking
company has its own collection system to recycle their old or used
equipment. However, while 63 percent of companies require the creation
of a closed system for the recovery of rare metals technology in
Germany. In addition, 72 percent of surveyed companies rely on a
change in the political environment and expect a liberalization of
trade in scarce supply.

Gallium, niobium, or chromium - although the lack of such raw
materials could soon overtake the future development of important
technologies in Germany, have developed very few companies own
strategy against the impending shortage of raw materials. While 18
percent of companies have already problems in the procurement of key
raw materials production. 13 percent of respondents also stated that
their competitiveness has suffered because of the shortage of
technology metals and another twelve percent see this development even
their own livelihoods at risk.

The study also shows that seven percent of the company due to lack of
resources and the limited opportunities for substitution fear of
having to take their products over the next ten years from the market.
For the CEO of RLG, Dr. Gerd Slotta, this problem is not new: "The
increasing scarcity of resources requires us. The German companies
have to develop the recycling industry with a management for globally
integrated value streams. "

Price war brings companies in distress

The increasing pressure from international competition exacerbated the
situation. Emerging, resource-rich emerging economies like China and
India need to grow vast amounts of metals and technology driven by
their need for the world market prices upward. In addition, the raw
materials often focus on a few countries that restrict exports.
Thereby threatening the long term, the German industrial raw materials
in a special economic and political dependence on China, as it exists
today with gas from Russia. This applies in particular emerging
markets such as electric vehicles and renewable energy. The study
found 46 percent of respondents to speak for the conclusion of direct
contracts with the countries of origin of rare metals technology from
the federal government to safeguard the national resource base.
Another 26 percent of companies are working to this end together with
a trade or federal association. Only 17 percent of the companies avoid
having to use the policy and conclude contracts directly with the
countries of origin in order to gain access to valuable resources.

This development has important consequences for the German industry.
Thus, more than half the companies surveyed (54 percent) found in the
past three years, a substantial price increase in metals technology
relevant to them. As a result, five percent of respondents already
being forced by the lack of necessary resources to convert their
production to substitute materials - another 24 percent this fear for
the next ten years. Nine percent of companies expect that certain
metals technology is very difficult or even no longer be collected.
Especially small and medium-sized companies with annual revenues of
less than € 500 million to see the speculation in the international
commodity markets (40 percent), and structural problems (27 percent)
as the main cause of the defect. The industry is as a consequence of
their increased costs through price increases on directly to the
consumer. Is planning more than half the companies (52 percent), cost
increases to circulate on the selling prices of their products - with
direct consequences for the consumer. For Dr. Slotta but this is not a
viable solution: "Instead of making price increases, the company
should first exhaust the existing recycling potential. The recycling
of raw materials reduces dependence compared to price fluctuations in
world market. "

Effective recycling for more independence

The feared dependency concerns relate particularly rare metals that
are used for example for the production of solar panels. Germany could
serve as a pioneer in the field of renewable energies by a shortage in
arrears was delayed compared to other countries - with negative
consequences for the labor market and their own innovative potential.

So far, the companies surveyed, however, mainly observed the evolution
of prices for frequently-to-find materials such as nickel (29
percent), copper (28 percent) and steel (24 percent). Overlooked is
that in these metals so far no serious shortage threatens. There
exists in Germany for years, copper has been a closed system for the
recovery of the industrial recycling. Contrast, metals such as niobium
or find technology gallium according to the study little attention.
Only two percent of respondents closely follow the price development
of the rare metal niobium, which is used for the production of modern
high-tech equipment in Germany and is scarcely mentioned. Here again,
an effective recycling to avoid dependencies. Dr. Slotta sees only one
way out of the dilemma: "We needed a change of the throwaway society
need to recover economic value. This is possible only when there is a
rethink in the company. "

Reverse Logistics Group

The Reverse Logistics Group (RLG) is a leading solutions company
focused on redemption. Develops with its subsidiaries and affiliated
companies, plans and operates across Europe, the RLG-back systems for
products, components and materials. Under the brand will Cycleon
services and customized solutions for various types of redemptions
available. The CCR offers recycling solutions focused workshop
disposal, battery and electronics recycling as well as Europe-wide
compliance management. The Vfw develops and operates recycling systems
for packaging, electrical and electronic equipment and batteries. The
Reverse Logistics Group was founded in 2006 and currently employs
around 250 employees with an annual turnover of approximately € 150
million. The parent company is the Reverse Logistics GmbH, with
headquarters in Dornach near Munich.