Zero Waste SA UpClose – New Castalloy

Nash Rodrigues, Engineering and Environmental
Manager at New Castalloy
n e w c a s t a l l o y®
melting boundaries, casting innovation
Zero Waste SA Industry Program
Transformation in
sustainable performance
New Castalloy is a high achiever in the
area of environmental responsibility –
a statement that would have been
unthinkable just five years ago.
From 2004 to 2006 the wheel producer
was at serious risk of being closed down
because of an eco-performance that was
well below standard.
It was in dispute with its neighbours and
regulatory authorities because of excessive
noise and odour levels. The foundry was
one of the State’s top 10 highest water users
and its approach to waste management was
below par.
This all changed with new owners HarleyDavidson and a fundamental change in
attitude towards sustainability. In 2007
New Castalloy signed up to the Zero Waste
SA Industry Program and began the process
of reducing its environmental footprint.
It has succeeded on many levels. Not only
has New Castalloy achieved ISO 14001
environmental certification, but in 2009
it became the first company in the State
to be awarded an Environment Protection
Authority Sustainability Licence.
This new level of recognition is given for
excellence in environmental compliance
and sustainability, and for engaging with the
local community and other stakeholders.
Along the way, New Castalloy has been
awarded the Clean Air Society award, the
West Torrens Council Water Saving award
and it was a finalist in the SAI Global Systems
Excellence Awards.
Rather than environmental issues being
seen as a nuisance and distraction to core
business, New Castalloy is now proud of
its performance. Greater sustainability is
considered a competitive advantage and
a way to improve its bottom line.
New Castalloy has adopted a
pragmatic business approach to
sustainability. Typically, unless
payback can be achieved within
two years, we won’t proceed
with an initiative. It drives us
to be innovative in implementing
solutions. It’s an approach that
proves sustainability does pay.
Michael Tamasi
Managing Director
New Castalloy
The amount of water used for casting wheels has been
significantly reduced during the manufacturing process
Sustainability objectives
Develop a culture of sustainability that
saves money, protects the environment
and transforms the company into a
respected neighbour.
Outcomes
• rapid turnaround in environmental
performance
• major cost savings from energy, water
and waste reduction initiatives
• extensive employee support
Zero Waste SA support Waste reduction
• waste and resource assessment
strategy
• development of a case study
As a result of the new culture of
sustainability at New Castalloy, the waste
hierarchy* is applied to all waste streams,
with the ultimate goal of achieving a zero
waste operation.
Annual cost reductions
Total solid waste to landfill has been reduced
by 1000 tonnes, down from 1800 tonnes in
2009 to 800 tonnes in 2010.
• support for resource efficiency plan
• advice on sustainability initiatives
2009 – $536,749
• effective community consultation
• waste disposal costs reduced 37%
($133,749)
• working in partnership with
government agencies
• electricity costs reduced 20%
($326,000)
• sustainability now part of core business
continuous improvement
• gas costs reduced 7%
($77,000)
2010 – $283,068
TEAM EFFORT
• electricity reduced by 1.562 million
kWh (15%) saving $156,042
New Castalloy’s sustainability program
is a team effort that is supported at
all levels of the organisation from the
Managing Director to the shop floor.
• gas reduced by 9958 Gj (7%) saving
$51,838
Three sub-committees have been
established to drive improvement in
water, energy and waste and these
are headed by “green champions” –
people in senior positions with real
passion for ensuring the company
achieves its environmental targets.
• water efficiency per kilogram cast
improved from 16.19 L to 12.55 L
The groups meet every two weeks
to consider new ideas and
evaluate progress.
• waste to landfill reduced by 1010 tonnes
(56%) and liquid waste by 117,000 litres
(19%) for total savings of $75,188
Recycling bins are now located throughout
the plant for a wide range of waste streams,
including paper and cardboard, wood,
plastic, sand, fluorescent lights, batteries and
printer cartridges.
Adoption of the 6S Framework and focus on
quality has cut the product rework rate by
about 4% at machining and 5% at painting.
Improved production systems are also
reducing waste and saving New Castalloy
time and money.
The simple measure of storing most wastes
in a consolidated undercover area has
cut waste disposal costs and provided an
opportunity for reuse and recycling
of coolant.
Previously the contaminated runoff from
machining swarf (metal shavings) was
collected in underground tanks and had
to be pumped out by a waste contractor.
Now more than 15,000 litres of coolant per
year is filtered and reused.
* The waste management hierarchy is a nationally and internationally accepted guide for prioritising waste
management practices with the objective of achieving optimal environmental outcomes. It sets out the preferred order
of waste management practices, from most preferred (waste avoidance) to least preferred (waste disposal).
Chemical Engineer Frank Massalsky inspects
recyclable materials in New Castalloy’s undercover
waste storage area
Systems for
improvement
Achieving such a dramatic turnaround in
environmental performance has involved
action on many fronts.
Early involvement in the Industry Program
provided New Castalloy with an accurate
assessment of its environmental impact
and enabled the development of a resource
efficiency plan jointly funded by
Zero Waste SA.
The company also adopted the 6S
Framework, an extension of the “good
housekeeping” 5S system which focuses
on lean manufacturing and continuous
improvement. Sustainability is a major
element of 6S with a strong emphasis on
more efficient production systems and less
rejects and reworks.
Another key feature of the company’s
new green direction was the introduction
of the accredited Environmental
Management System ISO 14001 and an
Aspect-Impact Register.
“The Aspect-Impact Register is very
detailed and allows us to monitor the impact
of every single aspect within each process,”
says Nash Rodrigues, Engineering and
Environmental Manager.
“We closely monitor energy and water use
through sub-metering and waste disposal
through our waste monitoring system. This
helps us to quickly identify what is normal
or abnormal and also track the impact of any
improvements we have implemented.”
All 200 employees on site have been trained
in using the environmental system. There
is a fair degree of integration between the
environment, safety and quality systems.
Finally, to ensure New Castalloy complies
with all State and Federal Government
environment regulations, the company
subscribes to EnviroLaw Online which
provides regular updates on new or
changing legislation.
• erecting an acoustic barrier
Reducing noise
and odour
New Castalloy’s odour footprint has
contracted dramatically from an area that
covered nearby suburbs to be contained
virtually within the plant site.
Early priorities for New Castalloy were
reductions in odour and noise – serious
community issues that were threatening
the future of the plant.
Noise
To comply with environmental noise
standards, the company relocated the
chrome plating plant, some pre-machining
operations and a furnace away from the
boundary towards the centre of the plant,
adding noise attenuators to equipment
and eliminating some noisy operations via
process re-engineering.
It also introduced a series of standard
measures such as closing doors and
monitoring noise levels at the boundaries.
Other initiatives included:
• installing double skinned panels under
workshop eaves
• switching to low noise hammers
and air nozzles
• eliminating noisy hollow casting
operations.
As a result of the improvements, noise levels
dropped to within acceptable limits from 63
to 58 decibels during the day and from 61.5
to 50 decibels at night.
Odour
Initiatives included:
• switching from alcohol to
water-based core paint
• eliminating fumes created
during casting
• stopping the use of sulphur dioxide
as a catalyst for core making
• stopping emissions in 58 stacks
• consolidating 28 of the stacks into three
and raising the height to 18 metres.
The initiatives have had a major impact on
ground level odour concentration, down
from 40 odour units to less than two.
Dramatic reduction
in water usage
Before embarking on its environmental
program, New Castalloy was among
South Australia’s top water users.
It has since implemented several programs
to reduce usage by 48% from 109,351 kL
in 2005-06 to 57,000 kL in 2009-10.
Major initiatives include:
• Redesigning the rinse tanks and
introducing automated sprays and
recycling of water in the chrome plating
plant. This was carried out at the same
time the plant was relocated as part of
the noise reduction program.
• Reconfiguring the machine shop with
a more efficient system for pressure
testing the wheels to prevent water
being contaminated with coolant residue.
• A waste water re-use project for rinsing
wheels in the chrome plant. Solids are
removed and the water is neutralised
so it can be reused to provide a virtual
closed-loop system.
The latest initiatives have helped
New Castalloy reduce water usage from
16.19 litres per kilogram cast in 2009 to
12.55 litres during 2010.
Energy saving initiatives
Lowering energy usage is an ongoing part
of New Castalloy’s continuous improvement
program.
The reduced energy usage has cut carbon
emissions by 2994 tons in 2010 compared
to 2009.
Initiatives include using a more energy
efficient melting furnace, halving the
number of high bay lights and managing
them with day-light switches. In addition,
a well documented shutdown and restart
procedure for all plant at production breaks,
has reduced total electricity usage.
Keeping neighbours
informed
An improved relationship with residential
neighbours has been one of the highlights
of New Castalloy’s sustainability program.
At the beginning of 2006 the company
was fielding up to 13 complaints a month
because of noise and odour. In the past
three years New Castalloy has received
just one complaint.
As part of its community consultation
program New Castalloy holds a community
consultation forum and annual public
meeting to keep people up-to-date.
Nash Rodrigues
Engineering and Environmental Manager
New Castalloy
8292 5550
nash.rodrigues@newcastalloy.com.au
Tawni Jones
Manager, Industry Program
8204 1706
tawni.jones@zerowaste.sa.gov.au
Andrew Hutcheon
Principal Adviser, Industry Sustainability
8204 8143
andrew.hutcheon@zerowaste.sa.gov.au
www.zerowaste.sa.gov.au
Level 8, Statewide House
99 Gawler Place
Adelaide SA 5001
Published April 2012 • FIS 91392
New Castalloy
New Castalloy has 200 employees in
Adelaide where it produces wheels for
Harley-Davidson motorcycles. Since 2006,
it has been a wholly-owned subsidiary of
Harley-Davidson Inc., the world’s second
largest motorcycle manufacturer and a
Fortune 500 company.
On 7 December 2011 Harley-Davidson Inc.
announced it will cease operations at
New Castalloy, Adelaide, by mid-2013
and source components through other
existing suppliers.
www.newcastalloy.com.au
Zero Waste SA
A South Australian Government agency
that advances improved waste management
policies and the development of resource
recovery and recycling. The Zero Waste SA
Industry Program advises and supports
companies to achieve sustainability goals
in waste, water and energy.
www.zerowaste.sa.gov.au