Blue Star Asset Management - Asset management consultants to the airline and aerospace industry
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Case Study 5

An aerospace manufacturer generated magnesium turnings from production. Magnesium turnings are a federally regulated hazardous material which is flammable when in contact with an oxidizer, such as water. The manufacturer was unaware of regulations regarding the storage, labeling, transportation and recycling of magnesium, and was allowing a local scrap company to take the turnings away in unmarked 55 gallon drums.

Blue Star immediately realized the risk that the company was taking and changed the process so that an authorized transportation company removed the drums, which were now properly labeled, to a recycler that met all Federal regulations for the recycling of magnesium. The new process did cost the manufacturer more for scrap handling, but eliminated the huge risk that the old process carried.

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