For Ecoplast Corp., the opportunity to become one of the largest plastics recyclers on the West Coast was too good to pass up, so President Parham Yedidsion took the plunge. Ecoplast, a Los Angeles-based broker, compounder and recycler of virgin, off-specification and recycled resin, purchased the assets of Envirothene Inc. of Chino, Calif. The purchase came through formation of a free-standing sister company for Ecoplast, called Ecosource Corp. Ecosource bought the assets through the assignment of credit for the benefit of creditors of Envirothene.
``It was a natural fit,'' Yedidsion said in a telephone interview. ``When we heard that the Envirothene assets had been assigned, we decided to make the move.''
He added that Ecoplast did not incur any of Envirothene's liabilities.
Envirothene was an established West Coast washer, grinder and repelletizer of post-consumer high density polyethylene bottles, and had boosted production in 1995 by adding washing, grinding and pelletizing of HDPE pails and drums.
Yedidsion said Envirothene had capacity for about 35 million pounds per year when it began to have financial difficulties.
``It was probably the combination of the recycled pellet prices climbing so high in 1994 and 1995, and then falling so far at the end of 1995 and this year,'' Yedidsion said. He said Ecosource is operating the 40,000-square-foot plant formerly occupied by Envirothene in Chino as an exclusively post-consumer plastics recycler. The range of materials will be expanded to include not only HDPE, but also polypropylene, polystyrene, ABS and other resins.
``Sales of all products from Ecosource will be through Ecoplast,'' Yedidsion said, noting that the two companies are independent of each other with common ownership.
Yedidsion's co-owner in Ecoplast is Massoud Forouzan-Rad, who also is co-owner with him in Ecosource.
``Now we will be one of the largest recyclers on the West Coast,'' he said. ``Since we already do custom compounding, filling, coloring and modifying of virgin and recycled resins at Ecoplast, this post-consumer operation gives us an additional benefit.''
The Ecoplast operation in Los Angeles currently processes and compounds about 40 million pounds per year. Yedidsion said the Ecosource Chino operation will process about 35 million pounds per year and employ about 50.
Jason Stanton, former president of Envirothene, would not discuss the events that led to assignment of the company's assets, but confirmed that he accepted the position of vice president for sales and marketing with the new company.
``This is just a better situation for everyone,'' he said. ``Now we can go out and sell a wide range of materials.''