Fix-Corp International Inc. is on the move again — this time acquiring a Canadian firm that collects oil containers, and adding pallet-making equipment to its Florida facility.
The Beachwood, Ohio, company agreed to purchase the assets, operations and existing contracts of Plastic Recovery Systems in Edmonton, Alberta, on May 22.
Terms of the stock and cash transaction were not disclosed.
``Plastic Recovery Systems has been collecting and grinding [post-industrial and post-consumer] high density polyethylene containers, then outsourcing the plastic flake to other processing companies,'' Mark Fixler, chairman, chief executive officer and president of Fix-Corp, said in a news release.
``The Canadian company contacted us in January of this year, offering to sell the regrind to our recycling operation.
``In the big picture, however, we see an opportunity to bring a new technology in the oil and plastic separation process together with a company that has already implemented a successful oil container collection system,'' he said.
``When we take into account that this operation is already supported by a proactive, Canadian public/private sector collaboration, the Alberta Used Oil Management Association, we form a model of effective recycling and sustainable development in action.''
Fix-Corp has teamed with AlliedSignal Inc.'s Federal Manufacturing & Technologies unit to separate motor oil from HDPE containers using proprietary technologies.
Plastic Recovery Systems averages about 100,000 pounds of plastic a month. Under its existing contracts, the firm is paid about 35 Canadian cents per pound (24 U.S. cents) to collect and grind the containers. And with Alberta adding 60 Eco-Centre drop-off stations for the oil containers by the end of the year, Fix-Corp could triple its intake. The company has been in business about a year, according to Fix-Corp spokesman Bill Buckholtz.
``This solidifies our closed-loop system and brings it back to the United States,'' Buckholtz said in a telephone interview. ``The Alberta government is very proactive and we're buying into a system that's working very well in Alberta.''
The company has outlined four distinct ways it can profit from these operations: by collecting and processing the containers; through recycled resin sales; from residual oil sales; and from the end-products manufactured from the raw material, such as plastic pallets.
The company's North Miami Beach, Fla., facility received pallet-making equipment for its Pallet Technology subsidiary. The line will be operational by the end of July and is scheduled to produce about 1 million pallets a year.
The 65,000-square-foot plant also houses Fix-Corp's Poly Style Industries, the PVC vertical blind operation acquired in March. Poly Style runs four lines, and together the subsidiaries employ about 40.
During the next 12 months, the firm predicts combined Florida sales will be about $23 million, bringing potential Pallet Technology sales to $40 million.