FCR Inc. boosted its high density polyethylene recycling capacity and added seven materials-recovery facilities with its acquisition of Resource Recovery Systems Inc. of Centerbrook, Conn.
``This is a nice tuck-in for our operations,'' said Sean Duffy, executive vice president for FCR. ``Their primary business is our primary business — post-consumer materials.''
FCR Plastics, a wholly owned subsidiary of FCR, processes between 40 million and 45 million pounds of HDPE a year, plus about 8 million pounds of PET. Resource Recovery gives FCR an additional 12 million pounds of HDPE per year.
The acquisition is part of FCR's vertical integration strategy, Duffy added. ``We get material and because we control it, it is quality material. Because it is a consistent supply, we can sell it directly to the end user.''
FCR's MRFs have municipal or private contracts for HDPE, PET, glass, fiber, aluminum and ferrous materials to be delivered to FCR's plants. The plastic is sorted by color, baled and shipped to FCR Plastics' facility in Reidsville, N.C.
Reidsville, with a capacity of 50 million pounds per year, debales, grinds, washes and repelletizes the recycled HDPE and PET. The plant, which employs about 45, added a third extrusion line in April.
FCR Plastics also operates recycling facilities in Rockingham and Hamlet, N.C. Rockingham recycles linear low density PE. The Hamlet facility purchases and grinds high-molecular-weight HDPE, often on a toll basis.
The June 19 deal also helps FCR establish a dominant position in the MRF industry on the East Coast. Resource Recovery operates facilities in Connecticut, New York, Michigan, Georgia and Florida. FCR already runs 11 MRFs in the eastern United States.
Charlotte, N.C.-based FCR had sales of about $40 million last year and employs nearly 1,000 at 27 plants.
In May, KTI Inc. signed a letter of intent to acquire FCR. KTI is a waste-to-energy and recycling company based in Guttenberg, N.J.
Last year, the firm had sales of about $100 million, but is on pace to hit $200 million this year.