Economic Development Opportunities through Aluminum Recycling

Subodh DasPresident & CEO, Secat, Inc.

Executive Director, Center for a Sustainable Aluminum IndustryDirector, Center for Aluminum Technology

University of KentuckyGOLD Conference

August 4, 2005

Sloan Industry Center-

Synergy of Partnership Clark Distributing Co.

Why Aluminum Beverage Can?

The Aluminum Can Recycling Rate, 1992-2004

45

50

55

60

65

70

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

%

National Aluminum Beverage Can Recycling Rate Trends.

(Source: Aluminum Association)

1% change in recycling rate has an economic impact of approximately $12 million

Trashed cans contribute about $600 million to the nation’s

trade deficit each year

• Kentucky has one of the largest concentration of aluminum facilities in the US.

• Recycling of aluminum beverage can is crucial in sustaining Kentucky’s aluminum industry.

• Most of Kentucky’s aluminum facilities rely on secondary (recycled) aluminum.

• Increasing recycling rate will grow existing jobs and bring high paying, knowledge based jobs and modern aluminum plants to Kentucky.

Recycling as an Economic Development Initiatives

Potential Economic Development Opportunities

• By increasing the aluminum recycling rate by 1%– Economic savings $12 million dollars per year– Produces 40 million pounds of aluminum per year– Enables the construction of one recycling plant

• Cost of building a recycling plant in Kentucky is $12-15 million dollars,

• Employing 120 people• Average salary of $50,000 per year

– Contributes to savings of 1 trillion BTU of energy per year

– Lowers the national trade deficit by $12 million dollars per year