Auto Recycling World asked Ayton Kempers, co-owner of Autorecycling Kempers GmbH based in Germany, for an update on the company’s UAE venture and what he believes the future holds for vehicle recycling.
Ayton, when Autorecycling Kempers GmbH was last featured in ARW, the company was embarking on a venture in the United Arab Emirates to set up a shop to sell parts over there. Can you remind us why you undertook this, how it is going, and what the reception has been like?
In recent years, we noticed a high demand for specific parts in the Middle East. We can respond to this demand thanks to our close cooperation with the German manufacturers. This is why we decided to open a location in the UAE. In this way, we can offer our parts – directly from the German manufacturer – in the Middle East.
Our customer base has developed well, and we are happy that we made the decision to expand to the UAE.
You have contracts with German manufacturers. With COVID, the chip shortage and the Ukraine conflict, what effect has that had on business over the last couple of years, and what is the current situation?
We work very closely with the German automotive industry. Since the outbreak of COVID and the Ukraine crisis, the industry has suffered greatly from material/part shortages, including the shortage of microchips.
The technical development capacities were reduced, resulting in fewer (test) vehicles being produced and ultimately recycled.
The market seems to be stabilising at the moment, and the supply chain appears to be recovering. We are also experiencing an upward trend in the supply from the manufacturers.
After such a turbulent time, especially with prices starting to drop, how do you expect the next twelve months to unravel? Do you think there is calmer water ahead, or after such unprecedented times, do you think auto recyclers are still wary and expecting that anything could happen?
That is impossible to predict. From my perspective, the global market seems to be cooling down. I think we are past the peak in metal prices.
What is your involvement with the Catena X project? Could you explain this, how you participate, and what benefits it could bring to you and to the vehicle recycling sector?
We are currently in the process of joining Catena-X. The entire project revolves around collaboration within the automotive industry, from supplier to recycler. I think this is an opportunity for car recyclers to enhance their relationship with the manufacturers – and in that way, also improve the exchange of data. As car recyclers, we can contribute valuable and unique data to the project. The ultimate goal is, of course, to take the circular economy to an even higher level, thereby reducing our carbon footprint.
Recycling will be central in the coming decades.