In Ford's Chicago plant, huge machines stamp the hoods of various vehicles from large sheets of aluminum. Scrap pieces fall to a conveyor belt below, which carries an assortment of materials left over from the manufacturing process. In order to reuse the aluminum, it has to be separated from the other scrap. Ford turned to OmniSource Corp. of Fort Wayne, Indiana, which designed a system using magnets and shaker tables that separates ferrous metals and other contaminants from the aluminum. The remaining clean aluminum is pressed into 1,000-pound bales and shipped back to the Alcan Aluminum Corp. where it originated.
The returned aluminum is remelted and re-rolled into aluminum sheets and in turn shipped back to Ford. Alcan realizes a significant reduction in costs because remelting aluminum requires only 5 percent of the energy that is needed to create primary aluminum from ore. These savings also are passed along to Ford. And while the OmniSource separation system was a $400,000 investment, the car manufacturer is now saving more than $2.5 million a year by recycling high quality aluminum.
The project's success has encouraged other car companies to explore recycling options and at the same time incorporate more aluminum into their vehicles. The benefits extend to overall weight reductions for new cars, which can increase fuel efficiency.
The closed-loop aluminum recycling program meets criteria set by Ford chairman Bill Ford: to reduce waste, enhance efficiency, and reduce costs.

Founded 30 years ago in Bozeman, Montana, PERC—the Property and Environment Research Center—is the nation’s oldest and largest institute dedicated to improving environmental quality through property rights and markets.
PERC’s publications, each designed to resonate with specific groups, move ideas generated at PERC to broader audiences.
Research is at the heart of PERC's work, with a focus on the question: What is the link between economic growth and environmental quality?
The goal of PERC’s programs is to fully realize the vision of establishing “PERC University,” where scholars, students, policy makers, and others convene to expand the applications of free market environmentalism.
PERC's fellowships share a common goal of exposing new scholars, students, journalists, and policy makers to free market environmentalism, as well as enable scholars already familiar with FME to explore new applications.
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