Scrap Receiving Requirements

NICHOLS ALUMINUM

Scrap Receiving Requirements

RECEIVING HOURS – The hours designated to receive purchased material will be from 6:00 AM to 9:00 PM, Monday thru Friday, except holidays. All shipments must be scheduled for delivery through Debbie Eitel, Scheduler, via telephone 800-879-6175 or 563-328-6389. She may also be reached via fax 563-322-1207 or via e-mail eiteld@nicholsal.com. Any material arriving without a scheduled appointment will not be allowed to unload and any resulting charges will be the responsibility of the shipper. In the event an appointment is missed, the load will be scheduled for another appointment or the material will be unloaded as time permits.

SCHEDULING PROCEDURE – A delivery appointment must be obtained from Debbie Eitel, Scheduler, via telephone at 800-879-6175 or 563-328-6389, via fax at 563-322-1207 or via e-mail eiteld@nicholsal.com prior to shipment. Material will not be accepted without a delivery appointment. Appointments will not be accepted from transportation companies. Prior to delivery, fax (319-322-1207) or e-mail (eiteld@nicholsal.com) the shipping information indicating the order number, items shipped (including Nichols Aluminum part number), piece count, appointment date and time, package description and seal number. The gross, tare and net weight of each commodity must be reported to the Receiving Department. Nichols Aluminum will not be responsible for detention if this information is not provided. No more than three (3) material types will be accepted per shipment.

SHIPPING DOCUMENTS – Shipping notification must be faxed (563-322-1207) or e-mailed (eiteld@nicholsal.com) to Debbie Eitel prior to the loads arrival at the Nichols Aluminum Casting Plant. A complete packing list must accompany each shipment, including rail cars. The shipping documents should be affixed to the rear interior wall of the trailer (truck driver possession will also be accepted). The packing list should clearly indicate the purchase order number, alloy or material classification indicating Nichols Aluminum part number, items shipped, number and type of each commodity, as well as the gross, tare and net weights of each package.

WEIGHTS – Trucks will be heavy weighed and light weighed prior to and after unloading on a certified scale at the receiving facility. Each commodity item will be weighed when unloaded. At the discretion of receiving personnel, each piece will be weighed if such procedure is deemed necessary. Vendors will be paid according to Nichols Aluminum scale weights. If a deviation between reported weight and received weight is greater than 1%, the vendor will be notified prior to material being accepted into inventory for use by Nichols Aluminum. The vendor would have three options as to disposition: 1) accept the weights given by Nichols Aluminum with verifying weight tickets; 2) physically observe the weighing process, which will be the settlement weight; 3) accept the return of material. Nichols Aluminum will not be responsible for detention due to differences in reported and received weights. The Vendor will be responsible for any additional labor or other handling cost associated with load weight discrepancies.

INSPECTION AND SAMPLING – Each load will be examined upon receipt. The material will be inspected for compliance with the description of the material purchased, chemical composition, safety hazards, metallic contamination, non-metallic contamination, excessive fines, oil, moisture and packaging. The method and frequency of inspection and sampling will be at the discretion of Nichols Aluminum. The above analytical test or physical inspection are sufficient grounds for rejection or, if mutually agreed between shipper and receiver, grounds for downgrade or repackaging.

DOWNGRADES/REGRADES – Material that does not meet the specifications of the purchase order is considered to be rejected and, therefore, subject to the Rejection Guideline. If the material is acceptable as another grade/part number, the vendor shall have the option of: 1) accepting the price of this grade/part number effective on the date of the purchase order; 2) take back the material.

REJECTIONS – Because space is critical, rejected material must be removed as soon as possible. The maximum allotted time is five (5) working days. If not removed within this time, the rejected material will be put on a truck and sent collect to the vendor or location of the vendor’s choice. This purchase order shall remain open subject to the original terms and conditions.

SCRAP RECEIVING INSPECTION REPORTS - Nichols Aluminum will provide suppliers with Scrap Inspection Reports along with appropriate documentation in order to expedite scrap inspection issues including weight discrepancies, downgrades, regrades, rejections and repackaging. The Inspection Report will report Nichols Aluminum’s disposition of the load. Unless we are contacted by 5:00 p.m. CST the next business day, Nichols Aluminum will release the material for our receipt and consumption per the disposition on the Inspection Report.

RECEIPT OF LOADS BASED ON RECOVERY – From time to time and in downgrade situations, material, by truckload, will be received based on product recovery. In such circumstances, payment will be based on shredded aluminum product recovered and delivered to the material storage bins. Nichols Aluminum will not be responsible for the reporting of the weights associated with shredded residues, dirt, fines, emissions, tramp ferrous materials, wood, paper, plastic or any other particulates removed during processing.

LOAD AND MATERIAL SAFETY – Nichols Aluminum takes pride in its commitment to safety in the work place. We have high expectations of ourselves and have every intention to insure that a safe and reliable product is provided to our customer. With this commitment in mind, it is understandable if Nichols Aluminum has the same expectations of its shippers. Bulkheading or bracing will be required to prevent material shifting. Sufficient spacing should be maintained between the material and the roof/sides of the trailer in order to facilitate ease of unloading and prevent damage to the trailer. Material packed or wedged in the transport will be subject to repackaging. Nichols Aluminum reserves the right to determine the safe condition of a load. If receiving personnel determine that a potentially unsafe condition exists or, if the load has shifted in such a way as to prevent timely unloading, the material will be rejected or subject to repackaging as determined and mutually agreed between the buyer and the seller. Coils with fiber cores are unsafe and subject to rejection if the I.D. of the coil has collapsed and/or the fiber core is wet.

SAFETY PENALTY – If cans or other hazardous materials are found while dumping or charging boxes/bales of Pre-Consumer, Industrial Direct Charge material, we will stop dumping or charging and reject the balance of the load OR if the material is shreddable, it will be downgraded to be shredded at a price reduction. Whether the material is rejected or downgraded, a standard safety/handling fee of $500 will also be charged to the vendor, no exception. AS NICHOLS ALUMINUM CASTING CAN DIRECT CHARGE DRY, POST-CONSUMER LITHO SHEET WITH LIGHT INK, THIS SAFETY PENALTY HAS BEEN EXPANDED TO INCLUDE LITHO SHEET.