Resources, Conservation and Recycling 20 (1997) 207217

Management of scrap car recycling

Ching-Hwa Lee *
Department of En6ironmental Engineering, Da -Yeh Institute of Technology, 112 Shan -Jeau Rd., Dah -Tsuen, Chang -Hwa, Taiwan, ROC Received 25 March 1997; received in revised form 23 April 1997; accepted 8 May 1997

Abstract This report describes the current scrap car management system in Taiwan. In Taiwan, most metal scrap for recycling is imported from foreign countries. Since scrap cars contain 80% metal, they are a signicant domestic feed source for metal recycling industries in Taiwan. However, many scrap cars are abandoned on the street by the last owner, causing trafc and environmental problems. Consequently, a scrap motor vehicles management regulation has been issued by the Environmental Protection Administration to promote scrap car recycling in Taiwan. According to this regulation, the Foundation for Reduction, Reuse and Recovery addresses the scrap car recycling issue in Taiwan by accumulating scrap car disposal fees from local car manufacturers and foreign car importers. The new management system for scrap car recycling in Taiwan was effected on 1 January 1995. 1997 Elsevier Science B.V. Keywords: Management; Recycling; Resource recovery; Scrap; Car

1. Introduction The ofcial gure of registered automobiles, as released by the Ministry of Transportation of Taiwan ROC, as of the end of 1996, is approximately 5.0 million. Of these, 18% of the cars range between 7 and 10 years old and 15% of the cars are
* Tel.: + 886 4 8532835; fax: + 886 4 8531157. 0921-3449/97/$17.00 1997 Elsevier Science B.V. All rights reserved. PII S 0 9 2 1 - 3 4 4 9 ( 9 7 ) 0 0 0 1 8 - 9

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older than 10 years. The problem of abandoned cars on the streets of Taiwan derives from this large number of old cars. The phenomenon not only hinders trafc ow, but also undermines quality of life in the cities. To minimize these negative effects, the Environmental Protection Administration (EPA) has promulgated a Scrap Motor Vehicles Management Regulation to enforce scrap car recycling in Taiwan. Under this regulation, the Foundation for Reduction, Reuse and Recovery (3R Foundation) addresses the scrap car management issue in Taiwan by collecting a scrap car disposal fee from local car manufacturers and foreign car importers. Currently, a buyer of a new vehicle must pay a Scrap Motor Vehicle Disposal fee (NT$3000, or US$110, for a car; and NT$700, or US$25, for a motorcycle). This paper presents the current status of the scrap car management system in Taiwan.

2. The occurrence of scrap cars in Taiwan If 10% of total registered cars are scrapped, then annual scrap car generation is about 500 000 units. Due to inadequate ofcial scrap car management system data, the actual number of scrap cars is not known in Taiwan. Generally, scrap car occurrences in Taiwan can be classied into three categories: 1. The car owner completes the ofcial car registration cancelling procedures and sells the unwanted car to a scrap car processor. 2. The car owner sells the unwanted car to a scrap car processor directly without completing the ofcial car registration cancelling procedure. 3. The unwanted car has been abandoned on the road by the owner without any care. After four management steps (identication, report, tow and public notication) taken by the proper authorities, this abandoned car can be ofcially declared as a scrap car and sold at auction to the scrap car processors. Proper authority implies that if, the licence plate remains attached to the abandoned car, it should be managed by the local police department; otherwise, it should be handled by the local environmental department. Fig. 1 presents the current street abandoned car management process. Based on a survey conducted in 1992 by a non-prot organization, Industry Technology Research Institute, the ofcial scrap car number reported by the Transportation Ofce (i.e. car owner formally completes the ofcial car registration cancelling procedure) is 50 026 per year; the towing and auction car number reported by the proper authorities is 16 931 per year; and the scrap car number reported by the local scrap car processors is 150 000 per year. It can be seen that the scrap car number reported by the local scrap car processor is much higher than the ofcial reported scrap car number. This implies that many car owners sold their unwanted cars directly to processors without bothering to complete the ofcial car registration cancelling procedure. This phenomenon may be due to either the ofcial car registration cancelling procedure being time-consuming or the car owner having a huge unpaid ticket penalty or car taxes which discourages carrying out the ofcial car registration cancelling procedure.

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3. Conventional scrap car recycling system In Taiwan, most scrap cars will eventually be accumulated by scrap metal processors to recycle the metal content. Generally, if the scrap car is less than 5 years old (e.g. the trafc accident car), it will rst be sold to the used car parts dealer to be manually dismantled for usable parts. After all usable parts have been

Fig. 1. Flowsheet for management of cars abandoned in the street in Taiwan.

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retrieved, the empty car body will then be sold to the scrap metal processor. In most cases, the scrap metal processor pays NT$10002000 (US$4080) for a complete scrap car depending on the location and condition of the car and the local price of the steel scrap. The typical dismantling process initially involves manually draining the liquids (e.g. fuel gas, oil, coolant water) out of the car. Next, a unique mobile crane is used to mechanically tear large items out of the car body. Common items to be torn out by this process are engine, water tank, battery, seat, tyres, etc. Actual items taken out vary with different processors. For instance, if the steel mill accepts the car body with the seat or other non-metal parts, the processor may not spend the time to remove the non-metal parts. Finally, the empty car body is cut with a guillotinetype shearing machine to reduce it into several large pieces. After magnetic separation by a mobile magnetic head mounted on a crane, the steel fraction is sold to the electric arc furnace steel mill and the non-magnetic fraction is sent to the landll for disposal. Although the typical car dismantling process can extract most of the metal content from the scrap car for recycling purposes, it also can create negative environmental problems. For instance, to minimize dismantling time and cost, uids (e.g. oil, CFC, coolant water, battery liquid, etc.) inside the car may not be properly collected by the processor and are just allowed to leak out on to the ground. Since many processing yards do not have pollution prevention facilities, these leaking uids generated from careless dismantling processes may seriously pollute soil and groundwater. Also, the non-magnetic fraction (the seat, tyres, plastic parts, etc.) occasionally is discarded by processors to illegal dumping sites because of insufcient landll space. If scrap metal processors consider hidden environmental costs, it may be no longer feasible for them to buy scrap cars for metal recovery. In order to accommodate these costs, processors may have to collect a disposal fee from nal car owners to compensate for the cost of proper treatment.

4. Scrap car recycling regulation Because of the scarcity of landlls and incineration facilities available in Taiwan, the EPA actively promotes waste recycling to reduce the amount of garbage produced in municipalities. According to the provisions of the Waste Disposal Act and to efciently utilize the governments human and nancial resources used in recycling, the EPA has currently designated 16 post-consumer products (e.g. used PET and PVC drinking bottles, scrap motor vehicles, used tyres, leadacid batteries, waste oil, etc.) as producer responsibility products. Producer responsibility species that manufacturers, importers and sellers of these designated products have the responsibility to retrieve their discarded products and recycle them properly. Since most manufactures and importers are not familiar with the waste recycling business, they either form or select a professional waste management organization to assist them in fullling government requirements.

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On 8 September 1993, the scrap motor vehicle was declared a producer responsibility product, and on 21 October 1994 a Scrap Motor Vehicles Management Regulation was issued by the EPA to enforce scrap car recycling in Taiwan. The Scrap Motor Vehicles Management Regulation has the following mandates: 1. Car manufacturers, importers and sellers (CMIS) have the responsibility to recover and recycle scrap cars properly. 2. CMIS can conduct scrap car recovery work either by their own force or by entrusting the job to the 3R Foundation. 3. CMIS must full the ofcial scrap car recycling goal within a given period. 4. The recycling goal (%) is dened as: (the actual amount of scrap motor vehicles recycled by CMIS)/(the amount of scrap motor vehicles which actually complete the ofcial car registration canceling process) + (the amount of scrap motor vehicles which are recycled from other channels). 5. CMIS must pay a scrap car disposal fee to the 3R Foundation. 6. The adopted processes and facilities for the recovery and treatment of the scrap cars must satisfy the Governments environmental standards.

5. 3R Foundation On 30 June 1933, the EPA, in complying with the regulations derived from the Waste Disposal Act and the supervisory standards concerning the formation of environmental consortiums, established the Foundation for Reduction, Reuse and Recovery (3R Foundation) in Taiwan. The 3R Foundations goal is to assist and promote actual execution of recycling, cleansing and treatment of general waste by entrepreneurs [1]. According to the Scrap Motor Vehicles Management Regulation, CMIS formally entrusted the scrap car management responsibility to the 3R Foundation on 7 December 1994. In return, the CMIS must pay a scrap motor vehicle disposal fee (NT$3000, US$110, for a car; NT$700, US$25, for a motorcycle) to the 3R Foundation to facilitate the completion of scrap car recycling in Taiwan. Table 1 shows the calculation of this disposal fee for cars and motorcycles. As of June 1996, there are 16 car manufacturers, 245 importers and 26 dealers in the scrap motor vehicle producer responsibility recycling system in Taiwan. As of the end of 1996, the 3R Foundation consists of following divisions [1]: 1. Strategic planning division: to conduct the research, development, planning, etc. 2. Special projects division: to construct the autoshredder plant, etc. 3. Automobile division: to establish the scrap car recovery and recycling network, etc. 4. Inspection division: to monitor the scrap car recycling and treatment operation, etc. 5. Public affairs division: to conduct public education, propaganda, etc. 6. Accounting division: to conduct budget preparation, book-keeping, etc. 7. General affairs division: to purchase and repair ofce equipment, etc.

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Table 1 Calculation of scrap motor vehicle disposal fee (Source: 3R Foundation) Item Car (NT$ per car) Motorcycle (NT$ per motorcycle)

Direct cost Average reward money Towing Storage Dismantle Waste disposal Indirect cost Tax Education research Administration fee Residential value Final cost: (direct cost)+(indirect cost)(residential value) Note: US$1 = NT$27.5.

1300 700 200 1200 750 150 (5%) 300 (10%) 200 (6.7%) 1800 4150+650 1800 = 3000

400 (iron body), 200 (plastic body) 120 50 130 95 35 (5%) 70 (10%) 50 (7%) 150 695+155150 = 700

8. Personnel ofce: to conduct employee appointment, relief, transfer, promotion, etc.

6. Current status of scrap car recycling The conventional scrap car recycling system in Taiwan primarily relies on the individual scrap car processor to complete the task. However, after CMIS formerly entrusted the responsibility to the 3R Foundation, it has played an essential role in scrap car recycling. Beginning 1 January 1995, the 3R Foundation started to accept the publicly reported street abandoned cars. Since 1 March 1995, the 3R Foundation has been accepting unwanted scrap cars from owners. At the end of June 1996, the 3R Foundation reported that it had recovered and recycled 62 717 scrap cars and 215 790 scrap motorcycles. Table 2 lists the numbers of scrap motor vehicles recovered and recycled by the 3R Foundation in 1995 and 1996 (from January to June). Moreover, EPAs data show that in 1995 the recycling rate of scrap motor vehicles achieved by the 3R Foundation was 64.77% compared to the ofcial recycling goal of 60%. As of the end of 1996, the basic strategies adopted by the 3R Foundation to promote scrap car recycling in Taiwan can be summarized as follows: 1. To encourage the owner to report scrap cars to the foundation: 3R Foundation has negotiated with the relevant government authority to simplify the ofcial car registration cancelling procedure. Since 1 May 1995, the documentation needed by owners to cancel their car registration has been greatly simplied. Moreover,

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the accumulation of car taxes and fees ceases upon the date car owners present their cars to the foundation, even for owners who have not completed the process of relinquishing their vehicles at examination units. Also, the 3R Foundation has issued a monetary reward policy to owners who report their cars to the foundation. For instance, if the owner can deliver the scrap vehicle to the designated place, depending on the condition of this vehicle, the owner can obtain up to NT$2100 for a car and NT$550 for a motorcycle from the 3R Foundation. If vehicle towing is required, the reward money paid out will be reduced. 2. To encourage the public to report street abandoned cars to the foundation: 3R Foundation has established a toll-free telephone number which the public can call to report street abandoned cars or their unwanted scrap cars. Commercial advertising and public education have been conducted to promote scrap car recycling. 3. To contract with the local police and environmental department: Under current law, street abandoned cars can only be processed by the local police or environmental department (see Fig. 1) before they ofcially become scrap cars. Previously, these scrap cars were sold at auction to local metal processors. To ensure a reliable scrap car supply, 3R Foundation has contracted with several local police and environmental departments to obtain scrap cars. Currently, the foundation pays NT$1800 per car to the police and environmental departments. 4. To establish an open scrap car recycling network: 3R Foundation is a management-oriented organization. It is not capable of conducting actual scrap car dismantling and recycling work. Many scrap processors exist in Taiwan and already perform the scrap car recycling business. Thus, 3R Foundation establishes a scrap car recycling network by selecting and contracting with existing local scrap car processors and newcomers who are willing to join this network and perform the scrap car recycling work. Nearly all scrap car processors in Taiwan can join this network as long as they are willing to join and follow the foundations rules. As of 1996, 53 rst class processors and 84 second class
Table 2 The reported amount of scrap motor vehicles recovered by the 3R Foundation (January 1995 June 1996) Year Source Police and environmental department Car 1995 1996 (January June) Total 9766 5696 15 462 Motorcycle 11 319 8431 19 750 Public reported Contracted processor

Car 10 047 8743 18 790

Motorcycle 5513 6110 11 623

Car 16 913 11 552 28 465

Motorcycle 104 518 79 899 184 417

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processors have been contracted by the foundation. Generally, rst class processors have a greater scrap car processing capability than the second class processors. By establishing this open recycling network, the foundation can increase the amount of recycled scrap cars and full the ofcial scrap car recycling goal. To provide economic incentives to this network, the foundation distributes the acquired scrap cars to rst class contractors and pays a processing fee of NT$500 per car to all contractors. However, to join this network, contractors must improve their pollution prevention capability. 5. To improve contractors pollution prevention capability: Traditionally, most scrap car processors in Taiwan focus on retrieving recyclable items from scrap cars, but do not pay too much attention to pollution prevention issues. To improve this situation, 3R Foundation has adopted several methods to overcome this problem. For example, the foundation has issued pollution prevention guidelines to all contractors and subsidized all contractors to purchase necessary pollution prevention equipment. The foundation also attempts to assist all contractors in meeting ofcial environmental standards necessary to become a legal business. 6. To establish a car shredder plant: Until December 1996, not a single operational car shredder plant existed in Taiwan. Since the car shredder is the common machine utilized in other developed countries to treat scrap car bodies, the 3R Foundation is eager to complete the establishment of the rst operational car shredder in Taiwan. According to 3R Foundations plan, a car shredder plant of capacity of 40 t/h will be installed in the northern part of Taiwan at the end of 1997. Approximately 80 90% of the local scrap car processors are currently participating in 3R Foundations recycling network. The remaining scrap car processors are still conducting recycling work in a traditional way as shown in Fig. 2. The current scrap car recycling system which is used predominantly by the 3R Foundation is shown in Fig. 3. The biggest difference when comparing the current recycling system with the traditional recycling system is that pollution prevention is given greater emphasis. For instance, many processors (especially 3R Foundations contractors) have installed a concrete oor, waste water holding sump, oil skimmer and CFC collector to prevent possible pollution problems.

7. Conclusions On 8 September 1993, the scrap motor vehicle was declared a producer responsibility product, and on 21 October 1994, a Scrap Motor Vehicles Management Regulation was issued by EPA to enforce scrap car recycling in Taiwan. According to the Scrap Motor Vehicles Management Regulation, car manufacturers, importers and sellers formally entrusted scrap car management responsibility to the 3R Foundation on 7 December 1994. In return, the CMIS must pay a scrap motor vehicle disposal fee (NT$3000, US$110, for a car; and NT$700, US$25, for a motorcycle) to the 3R Foundation to facilitate the completion of scrap car recycling

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Fig. 2. Traditional recycling process for scrap cars in Taiwan.

in Taiwan. Thus, the 3R Foundation plays an essential role in the current scrap car recycling system in Taiwan. Beginning 1 January 1995, 3R Foundation started to accept publicly reported street abandoned cars. Moreover, since 1 March 1995, 3R Foundation began accepting unwanted scrap cars from the owner. In 1995, the recycling rate of scrap motor vehicles achieved by 3R Foundation was 64.77% whereas the ofcial recycling goal is 60%.

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The basic strategies adopted by 3R Foundation to promote the scrap car recycling in Taiwan include: encourage the owner to report scrap cars to the foundation by simplifying the ofcial car registration cancelling procedure and giving the reward money to owners; encourage the public to report street abandoned cars to the foundation by establishing a toll-free phone number and conducting extensive advertising and educational programmes; contract with local police and environmental departments to ensure a reliable scrap car source; establish an open scrap car recycling network by selecting and contracting with local scrap car processors who are willing to join the network; enhance contractors pollution prevention capability by providing pollution prevention guidelines and subsidizing pollution prevention equipment purchase; and adopt advance scrap car recycling technology by installing the rst car shredder in Taiwan.

Fig. 3. Current recycling system for scrap cars in Taiwan.

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Currently, scrap car recycling technology adopted by most processors remains the same as the conventional dismantling process. The biggest difference when comparing the current recycling system with the traditional recycling system is that pollution prevention is given greater emphasis.

Acknowledgements Financial support by the National Science Foundation of Republic of China under Project Contract No. NSC-86-2621-P-212-002 is gratefully acknowledged.

References
[1] 3R Foundation. A Brief Introduction to the Foundation for Reduction, Reuse, and Recovery. 3R Foundation, Taiwan, 1996.