Resource Plastics Inc. has finished construction of a new linear low density polyethylene film recycling line at its Brantford, Ontario, plant. The line can recycle about 20 million pounds of film annually from post-consumer and industrial sources. Resource spent C$5 million (US$3.8 million) to buy equipment from various suppliers and install it.
Resource President Barry Wood said his company plans to begin commercial operation of the line in February. Resource originally targeted completion of the line in August, but the complexity of the control system and extensive renovation of the plant floor delayed the project, Wood said in a telephone interview from Brantford.
The new line, though designed for film, also can recycle high density PE bottles. It complements the company's existing HDPE bottle recycling capacity of 16 million pounds per year.
Wood reiterated his company's intention to set up a U.S. recycling operation but has set no timetable. Resource will assess stock markets this year and if conditions are favorable, it will make an initial public offering. After it has a solid earnings record it will expand to the United States, he said.
Resource exports 85 percent of its output to U.S. customers. One of its major U.S. customers is Rubbermaid Inc. of Wooster, Ohio, which signed an agreement early last year to source as much as 10 million pounds of LLDPE annually from Resource. Rubbermaid uses the recycled pellets to make trash bins and liners.
Resource's expansion, including a C$1.2 million (US$900,000), 100-square-foot addition with new loading and blending equipment, will create 30 jobs, boosting employment to 70.