In Depth October 15, 2008, 7:39PM EST text size: TT

Lax rules and weak enforcement allow scrap companies to profit by sending junked computers, printers, and TVs overseas

Business is booming at Supreme Asset Management & Recovery, one of the nation’s largest recyclers of electronic waste. Inside a cavernous warehouse in the industrial section of Lakewood, N.J., workers in T-shirts grapple with newly arrived truckloads of old computer monitors, keyboards, printers, and TVs: tons of e-waste that contains dangerous lead, mercury, and cadmium. Such major manufacturers as Panasonic and JVC and municipalities like Baltimore County, Md., and Westchester County, N.Y., have paid Supreme to dispose of their digital detritus, relying on the company’s assurances that the work is done safely.

But as the e-waste industry proliferates—some 1,200 mostly tiny companies generated revenue of more than $3 billion last year—it has also become enmeshed in questionable practices that undercut its environmentally friendly image. Next year the volume of e-waste will probably surge. In February, U.S. consumers must switch from analog to digital television service, a move that is expected to result in the mass junking of analog TVs.

“No Accountability”

Seven former Supreme employees told BusinessWeek in interviews that they knew about the company selling large monitor shipments overseas. Despite the sales offerings on the Internet and the accounts of its former employees, Supreme says flatly that it “is not an exporter” of e-waste. The phrasing of its statement leaves open the possibility that others export the materials. But Supreme adds that to its knowledge, all of its buyers behave lawfully.

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Varkonyi, 63, describes himself as a middleman for recyclers who, he says, want to tell their corporate and municipal clients that they don’t export PCs or other potentially hazardous gear: “I buy stuff from other recyclers who then claim that they do not export anything.” Varkonyi won’t name his customers.

Business is booming at Supreme Asset Management & Recovery, one of the nation’s largest recyclers of electronic waste. Inside a cavernous warehouse in the industrial section of Lakewood, N.J., workers in T-shirts grapple with newly arrived truckloads of old computer monitors, keyboards, printers, and TVs: tons of e-waste that contains dangerous lead, mercury, and cadmium. Such major manufacturers as Panasonic and JVC and municipalities like Baltimore County, Md., and Westchester County, N.Y., have paid Supreme to dispose of their digital detritus, relying on the company’s assurances that the work is done safely.

But as the e-waste industry proliferates—some 1,200 mostly tiny companies generated revenue of more than $3 billion last year—it has also become enmeshed in questionable practices that undercut its environmentally friendly image. Next year the volume of e-waste will probably surge. In February, U.S. consumers must switch from analog to digital television service, a move that is expected to result in the mass junking of analog TVs.

For the full article, follow the link below.

Link: 

http://www.businessweek.com/magazine/content/08_43/b4105000160974.htm

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