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.June 09, 2004
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Volkswagen AG and Salzgitter AG develop solution for end-of-life vehicle recycling

Partners resolve to establish the CAR Cycling company as joint business

Wolfsburg - Volkswagen AG and Salzgitter AG have resolved to establish CAR Cycling as a joint business venture for the recovery of automotive shredder residue generated in end-of-life vehicle recycling. The company will implement an industrial solution for automotive shredder residue which is currently disposed of in landfill sites. The company will thus close material cycles. CAR Cycling will work with the new Volkswagen SiCon process. The objective of this unique process is to increase the recycling rate in end-of-life vehicles from 80 percent to approximately 95 percent.


Volkswagen AG and Salzgitter AG have been granted all necessary European and German permits, and plan to to start setting a pilot plant before the end of 2004. Approximately 20 million euros will be invested in the pilot plant which will be built at the Salzgitter Flachstahl GmbH steelworks in Salzgitter. The plant, which will have a maximum capacity of 70,000 tonnes of automotive shredder residue, will create between 20 and 25 jobs.

Chairman of the board of management of Volkswagen AG, Dr Bernd Pischetsrieder: "With this new recycling technology, Volkswagen underlines its commitment to sustainability. This closes the cycle comprising environmentally-oriented production, clean operation and a high level of recycling." Chairman of the board of management of Salzgitter AG, Wolfgang Leese, emphasised: "For us, the pilot plant in Salzgitter represents an important component in our partnership with the automobile industry. Here we prove that environmentally friendly actions can be combined with sound business practice."

The process to be used in the new company was developed by Volkswagen and the medium-sized company SiCon based in Hilchenbach, in a joint venture started in 1999. The process uses a separating plant to recover a range of re-usable materials from the shredder residue. These include shredder granulate, shredder fluff and shredder sand. The granulate, recovered from rigid plastics and rubber, can be used in Salzgitter in the blast furnace to replace heavy oil. Applications have also been found for the other fractions.

The shredder fluff can be used to dry sewage slurry, and the sand can be used as flux for making slag in copper metallurgy or as packing and building material in mining.

The plant in Salzgitter is intended to be the first of many throughout Europe. Both companies would welcome participation from further companies.

(June 4, 2004)

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