Reclamation Renaissance & Resource Revaluation

Novacero, Ecuador’s largest electric arc furnace steelmaker, is redefining scrap metal as a crucial industrial input rather than discarding it as waste. The “La Chatarra No Es Basura” campaign launched in early 2025 aims to change mindsets by demonstrating that recycled steel can match the quality and performance of virgin materials. The company estimates that using scrap reduces production costs by around 20 %, helping maintain competitive pricing without compromising environmental standards.

Circular Commitment & Community Collaboration

Under the leadership of Sustainability Manager Mariuxi Villacrés, Novacero has extended its outreach beyond factories into neighborhoods, schools and local businesses. The campaign collaborates with municipal recycling networks to streamline collection, processing and supply. In pilot programs across Quito and Guayaquil, over 500 tons of scrap have been collected since launch, resulting in educational workshops attended by more than 2 000 citizens and recycling entrepreneurs.

Inclusive Integration & Informal Inclusion

Novacero’s initiative formally integrates over 150 informal scrap collectors, known colloquially as chatarreros, into structured supply chains. These workers now receive protective equipment, vocational training and access to regulated procurement contracts. Their earnings have improved by approximately 30 %, according to company reports, and they now enjoy social benefits such as healthcare access and retirement contributions as part of Novacero’s social inclusion strategy.

Carbon Curtailment & Climate Consciousness

Steel production from scrap can significantly reduce CO₂ emissions, by as much as 60 % compared to primary steel from iron ore. Novacero’s furnaces, powered primarily by hydroelectric energy, process recycled metals in closed-loop systems that minimize energy waste and pollutant discharge. The company projects that its circular strategy will reduce carbon emissions by thousands of metric tons annually, aligning with Ecuador’s climate goals and international environmental accords.

Technological Transformation & Material Mastery

The company’s state-of-the-art electric arc furnaces and sorting systems can process a wide range of scrap grades, from automotive scrap to industrial off-cuts, transforming them into high-quality structural and rebar products. Quality assurance tests ensure that melt purity, tensile strength and corrosion resistance meet strict national and international standards, enabling Novacero to compete in demanding markets and infrastructure projects.

Educational Engagement & Environmental Empowerment

To build long-term public awareness, Novacero has partnered with universities, technical institutes and NGOs. Educational campaigns include scrap-themed art contests, school recycling challenges and interactive factory visits. These initiatives have reached over 5 000 students to date and created consumer-facing educational materials explaining the lifecycle of recycled steel and its benefits for ecosystems and society.

Policy Partnerships & Public Planning

Novacero is advocating for reinforced legislation and incentives to underpin its circular economy efforts. It is engaging with Ecuador’s Ministry of Environment and Ministry of Industries & Productivity to establish tax credits for recycling investments, subsidized collection infrastructure and standardized scrap quality regulations. These efforts aim to align industrial practices with national sustainability objectives and ensure regulatory consistency across provinces.

Symbolic Shift & Strategic Stewardship

At its core, the campaign promotes a cultural renaissance: waste is not waste until society says it is. “Metal scrap represents opportunity, dignity and resourcefulness,” Villacrés has said. The campaign also aligns with post-Covid economic resilience goals, seeking to strengthen local supply chains, reduce import dependency and support broader goals of sustainable national development.

Key Takeaways:

• Novacero’s campaign has diverted over 500 tons of scrap and engaged 2 000+ local residents in recycling efforts.

• Informal metal collectors now earn ~30 % more and receive social benefits through formal integration.

• Scrap-based production cuts CO₂ emissions by ~60 % and saves energy by 20 %, supporting Ecuador’s climate targets.