NYC inks long-term deal with Hugo Neu

Recycling Today, Nov, 2004

New York City Mayor Michael Bloomberg, Department of Sanitation Commissioner John Doherty and Economic Development Corporation President Andrew Alper have announced an agreement with Hugo Neu Corp.(HNC), one of the nation's largest scrap metal processors, that is designed to secure a long-term, economically viable outlet for the city's recyclables and dramatically reduce truck traffic on city streets.

The agreement calls for HNC to build a modern recycling facility with the understanding that the city will commit to deliver all of the metal, glass and plastic and a portion of the mixed paper that the Department of Sanitation currently collects through its residential curbside recycling program for the next 20 years.

"I am proud to announce that we are entering a new era for recycling in New York City," Bloomberg says. "This long-term contract allows HNC to make the capital investment necessary to develop better markets for the city's recyclable materials and we will use our network of waterways to move our recyclables around our city, removing trucks from our roads."

Construction of the $25 million facility will create 160 temporary construction jobs and 100 permanent jobs. Construction is expected to begin in early 2006 and to be completed by late 2007. HNC will finance the construction.

The long-term contract will lower the city's cost for processing metal, glass and plastic recycling to $48 per ton, which is $59 per ton less than the $107 the city was facing before the program's suspension two years ago. The contract will cost the city approximately $16 million a year, saving nearly $20 million a year compared to what the city would have paid prior to the recycling program's suspension. A total of 85 percent of the recyclable materials will be delivered to the facility via barge. After processing, 75 percent of the material will leave via barge, reducing truck traffic on city streets and improving the environment. By relying on waterborne transport, the facility will reduce truck traffic by 55,000 vehicle miles per year.

"Not only will this agreement bring jobs and investment to Brooklyn, it will also improve the environment, expand the working waterfront and help diversify our economy by expanding New York City's manufacturing sector," Alper says.

John Neu, chairman of HNS, says he believes the 20-year contract will provide an opportunity to develop new markets for plastic and glass in New York City and around the world. "We look forward to collaborating with the city and a host of environmental organizations on education and other efforts, which will increase the recycling rate, decrease contamination and reduce the waste stream. We believe that this kind of long-term commitment will ensure the economic viability of recycling," Neu says.

The facility will be located on a pier in the South Brooklyn Marine Terminal and because HNC will export containerized recycling materials, the new facility will support a stevedoring operation. These activities collectively represent a major development for a working Brooklyn waterfront, according to city officials.