SOMERSET, N.J.-In an effort to focus more on plastics recycling, and guarantee a steady supply of post-consumer material, Pure Tech International of Somerset has signed a nonbinding letter of intent to divest a glass recycling facility. In exchange for leasing its Newark and Hillside, N.J., glass and materials recovery facilities to Automated Recycling Technologies Inc. of Linden, N.J., Pure Tech will receive all PET containers collected at the Newark MRF at prevailing market prices.
Financial terms were not disclosed. Vice President Louis Haggis would not say how much PET is expected from the deal.
Under terms of the proposal, ART will lease the Newark and Hillside plants for two years, with an option to renew.
Pure Tech said last year it wanted to divest its glass processing and MRF businesses to focus more on plastics recycling. The deal would allow that, and eliminate the New Jersey operations, but assure a supply of PET. No plans have been announced for Pure Tech's glass processing plants in East Hartford, Conn., and California.
Pure Tech operates injection molding and post-consumer materials facilities. in eight states.