ELECTRONICS RECYCLING Revised May 2003

CONTENTS INDUSTRY OVERVIEW –General Perspectives –Highlights from the IAER Industry Report Industry Survey Industry Research CHALLENGES OBSERVATIONS

KEY DRIVERS –Increasing volumes Expanding pervasiveness of electronics Shorter lifespan of electronics technologies Large inventory of obsolete electronics –Concerns Landfill Hazardous materials –Challenges Logistics Costs

ELECTRONICS EQUIPMENT - TYPES Commercial –computers, office, financial Industrial –Telecom, Manufacturing, Medical Automotive Defense & Aerospace Consumer –PCs, video, audio, wireless, personal, games

ELECTRONICS EQUIPMENT - CONTENT REUSABLE: –Units (e.g., PCs, Printers, Monitors) –Components (e.g., Drives, Memory, Processors) RECYCLABLE MATERIALS –Metals (precious, base) –Glass (CRT) –Plastics

INDUSTRY SEGMENTS Asset Management –inventory, disposition planning, resale Broker –auction, resale, export Re-Use: for resale at product level –Resale/As-Is –Repair/Refurbish /Upgrade/enhance De-Manufacturing –disassembly & separation of parts and materials Recovery of Parts & Subassemblies –Test/Classify/Re-use/Sale Materials Recovery & Recycling (plastics, metals, glass) –separate, prepare for recycling Materials Processing/Refining (glass, metal, plastics) –shred, grind, pelletize, refine

SOURCES/GENERATORS Field Returns Surplus Trade-Ins Obsolete/EOL OEMs USERS LEASCOs ELECTRONICS RECYCLING INDUSTRY SEGMENTS/OPERATIONS Asset Management Broker Re-Use De-Manufacturing Parts Recovery Materials Recovery Materials Processing TRIAGE As-Is Repair Refurbish RESALE Disassembly Recover Parts Separate Materials RESALE Shred, Grind, Separate Refine, Smelt, Melt, Pelletize Primary Materials Processors ELECTRONICS RECYCLING INDUSTRY PROCESS MODEL Scrap Equipment Metals, Glass, Plastics Materials

ELECTRONICS RECYCLERS in the USA (data from IAER database) Number of Recyclers Not including OEMs & NFPs

HIGHLIGHTS from IAER SURVEY Electronics recycling companies in the USA: over 400 Employees: over 7000 Annual Revenue: over $US 700 million Annual Volumes processed: –over 1.5 billion pounds (750K tons) –including more than 40 million units of computer equipment –electronics recycling process yielded approximately 900 million pounds of recyclable materials

ELECTRONICS PRODUCTS OWNED by AMERICAN CONSUMERS (data from CEA 6 )

LIFE SPANS OF CONSUMER ELECTRONICS Years- range (from EPA 5 )

CONSUMER ELECTRONICS OUTLOOK Electronics products owned by consumers Electronics scrapped by consumers 10 2 Cumulative Volume – Billions of units

COMPUTER EQUIPMENT OUTLOOK Computer products installed Computer products scrapped Cumulative Volume – Billions of units

ITEMS COLLECTED in MUNICIPAL PROGRAMS % by number of items (data from EPA 11 )

Material Composition of Consumer Electronics in Municipal Waste Stream (data from EPA 5 ) % by weight

COST ELEMENTS of RECYCLING (data from Minnesota 12 ) % of total costs

HIGHLIGHTS from IAER RESEARCH Outlook to 2010 Consumer electronics: –About 3 billion units will be scrapped –or an average of about 400 million units/year Computer Equipment (from all sectors): –about one billion units will become potential scrap –or an average of more than 100 million units/year Electronics Recycling Industry –to grow its capacity by a factor of 4 or 5

CHALLENGES facing YOUR electronics recycling operations (from IAER Industry Survey) 1.Cost of operations 2.Markets for outputs 3.Sources of equipment 4.Prices for materials & parts 5.Capacity 6.Other

CHALLENGES facing the electronics recycling INDUSTRY (from IAER Industry Survey) 1.Legislation/regulations 2.Consumer/residential electronics 3.Plastics recycling Logistics/transportation 4.Product take-back programs 5.Recycling technology 6.Other

OBSERVATIONS Electronics Recycling Industry has been driven by commercial sector Consumer electronics have not been a factor in the market due to costs, value & logistics Computer equipment comprises most of volumes currently recycled Electronics recycling costs money - but also recovers value in products, parts & materials Industry still emerging - fragmented, small Co’s, limited process technology & capital

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