The most recycled material in the world, steel, is a flexible material that can be recycled repeatedly, hence a good model of circular economy. SSB recycles substantial quantity of steel scrap in the steel making, which is an approach to support global circularity economy. SSB also strives to recycle and reuse the co-products generated from its manufacturing processes as shown below. The recycling business model of the Group is imperative for environment sustainability, which enables preservation of natural resources.
Reference: The European Steel Association - EUROFER, Oct 3, 2016
Recycling of Steel Scrap
SSB’s core activity is recycling of steel scrap in EAF and converts steel scrap into valuable semi-finished product billets, which are then hot rolled into steel bars and wire rods to be supplied to construction sites and steel processing industry. SSB makes an effort to enhance circularity through maximisation of steel scrap usage in EAF whilst ensuring product quality meets the customers’ requirements.
Steel scrap generated by SSB’s subsidiary companies are sent to SSB for recycling in its EAF. Apart from this, SSB has a subsidiary that provides service to construction industry by cutting the steel bar into required length or forming into the required shape prior to delivering to the construction site. With such service, steel wastage at construction sites is being reduced.
SSB strives to maximise the use of recycled and recovered steel scrap in our EAF. In FY 2021 and FY 2022, we managed to use 93% of scrap when EAF product mix was mainly construction grade with minimum industrial grade. EAF product mix is the key influencing factor that determines the percentage of recycled and recovered steel scrap used. The volume of industrial grade in the product mix is the limiting factor to ensure that we meet the quality requirement of our customers whilst optimising our efforts in preserving natural resources.
|FY 2020||FY 2021||FY 2022|
|Recycled and recovered steel scrap used in EAF(%)||82||93||93|
|Group recovered steel scrap (Mt)||14,103||10,538||10,613|
In the process of recycling steel scrap in the EAF, co-products are generated. SSB’s approach on co-products is to classify them based on their characteristic and potential to adversely affect public’s health and environment and into scheduled and non-scheduled waste. The co-products are then managed in accordance with the Environment Quality Act, 1974. SSB also endeavors to maximise the resource value of co-products through research and development as well as promotion in recycle and reuse of co-products. The disposal of significant co-products for recycling and reuse is shown as below:
EAF dust is a co-product categorised under the Scheduled Wastes Code, SW104 of the First Schedule of the Environment Quality (Scheduled Waste) Regulations, 2005. EAF dust has high zinc compound which can be recovered. The strategy of SSB is to seek and develop a local licensed recycler, which is nearby to us to recycle the EAF dust and extract valuable zinc compound. The distance of the recycler is one of the conditions considered, whereby the nearer the recycler is, the shorter the EAF dust is on the road. This will reduce the risk of EAF dust spills on the road and cause of pollution. On top of this, a shorter transportation distance also contributes to reduction in carbon emission.
SSB aims to minimise the EAF dust inventory level. We have spent approximately RM140,000 to modify the dust collection facility in the 4th quarter of FY 2019 to enable the loading of generated dust directly onto a specially designed roll-on-roll-off trucks for the licensed recycler to collect. The EAF dust inventory has been maintained at 0Mt from FY 2020 to FY 2022.
EAF slag is a non-metallic co-product that forms during the steel making process, which is categorised as a non-scheduled waste. EAF slag is used as an alternative to rock fragments, which is commonly used as an aggregate for landfill. The strategy of SSB is to treat EAF slag in-house to recover as much of the metallic as possible before further processing the slag for other applications. The metallic recovered will then be reused in EAF as an input material for steel making. The in-house treatment and processing process has reduced the need for external transportation and hence, reduces some carbon emissions.
Ladle furnace slag is another non-metallic co-product that formed during steel refining process at ladle furnace, which is also categorised as non-scheduled waste. Ladle furnace slag together with other used refractory materials are disposed to bricks maker to produce cement bricks.