For Release: November 14, 1997

Contact: Stephanie Powell 277-2771 ext. 4418

Janet Keller 277-3434

PROVIDENCE - The RI Department of Environmental Management today signed a memorandum of agreement with Hetzel Elektronik Recycling - New England, Inc. to operate an electronics recycling facility in Rhode Island. The privately owned and operated facility, which will be located in the Greater Providence area, will begin operations in January accepting and processing items such as computer equipment, office electronics, telecommunications equipment and televisions. The company anticipates that over $2 million in capital investment will be made and 75-100 jobs will be created within four years. In return, DEM is assisting in the research needs of Hetzel, paid for by an Environmental Protection Agency grant.

The agreement is the result of a $236,000 EPA Jobs Through Recycling grant received by DEM's Commercial Recycling program in response to its proposal to stimulate the development of an electronics disassembly and recycling facility for re-use of materials that are traditionally landfilled, while contributing to economic growth and job creation. An additional $20,000 was granted by the American Plastics Council, along with approximately $100,000 worth of in-kind services and leveraged resources from other sources.

"This is an important economic and environmental achievement for Rhode Island," said DEM Director Andy McLeod. "We are both providing jobs and reducing an increasing source of waste in an innovative way. The volume of electronic products facing disposition is large and ever increasing."

He noted that over 12 million computers alone (300,000 tons) are disposed of annually. "A 1991 Carnegie Mellon study estimated that two computers become obsolete for every three manufactured, and predicts the ratio will increase to 1:1 by the year 2005. In addition to the volume of this material being discarded, other studies estimate that as much as 75% of obsolete electronics manufactured are in storage," McLeod said.

"We are pleased to be working with DEM and EPA to address this quickly growing portion of the waste stream," said Jurgen Wolf, Managing Director of Hetzel Elektronik Recycling, GmbH.

DEM solicited letters of interest from private companies citing the types of assistance available through the use of grant funds. Funds were not available to the company in the form of cash, but rather in the form of avoided costs for research and some start-up functions. Grant funds cannot be used for construction, equipment purchases or other capital costs and must be approved by the EPA. DEM also brought together experts in recycling market development, economic development and engineering as project partners to offer comprehensive services to the developer of this facility

In June 1996, the Department selected Hetzel Elektronik Recycling, GmbH of Nuremberg, Germany to develop the facility. Hetzel Elektronik Recycling GmbH was established in 1991 as a subsidiary of Hetzel Metalle, a non-ferrous metals processor. Hetzel has experience in electronics recycling in Spain, Norway, Russia and several locations in Germany, and has formed a partnership with another German firm, EVW, GmbH, for this venture, creating Hetzel Elektronik Recycling-New England, Inc. The Department is acting only as a facilitator and has no controlling interests in the business.

Hetzel brings patented cathode ray tube (CRT-monitors, television 'tubes') technology and disassembly experience and EVW brings patented multi-material processing equipment and experience. The company will hire several dismantlers initially. Specialized processing equipment will be shipped from Germany in the near future.

"We look forward to working together with area businesses to provide cost effective, environmentally friendly solutions for end-of-life electronic equipment while creating jobs and further strengthening New England's thriving economy," Wolf said.

DEM, with the assistance of the Economic Development Corporation, has supported this effort by clarifying regulatory issues, arranging site visits to potential business locations, and providing overall coordination with other entities in the state providing services. DEM is now working with Roy F. Weston, an environmental consultant, to determine the most cost effective methods to draw electronic material from diffuse sources in New England. A collection pilot project by DEM in the spring, funded by the grant, will assist initially in supplying recyclables to the company.

The University of Rhode Island is working on several aspects of this grant project and has developed a database of sub-assemblies, components, and materials which can be used as a decision making tool in the disassembly process. URI also examined issues related to combining disassembly and bulk recycling as the proposed facility has both components. Hetzel has extensive disassembly experience, while EVW has extensive "bulk recycling" experience. An overall review of the economics of the two practices combined will provide input to the question of when disassembly should stop and bulk recycling start for various products. This initial effort is believed to be groundbreaking work in this area. URI recently received a $100,000 National Science Foundation Lucent Technologies research grants to continue this work over the next two years and develop an operations analysis tool from this research.

"This project is a great reflection on how state and federal agencies working in partnership with non-profit groups and other interested entities can provide economic development while protecting the environment through re-use of non-traditional recyclable materials," McLeod said. "It's a first-ever for Rhode Island and I want to thank all the partners who made it possible."

In addition to EPA, the RI Economic Development Corporation, and URI's Industrial and Manufacturing Engineering Department, partners include the Small Business Development Center at Bryant College and the Northeast Recycling Council.