KTI Inc. continues to bolster its presence in the plastics recycling industry. The company's latest acquisition is First State Recycling Inc., a post-industrial recycler in Wilmington, Del.
The purchase price was $1.9 million in cash and KTI common stock.
First State has three grinding lines for all types of post-industrial plastic and employs about 10. Through the first half of 1998, it operated at a pace to generate $4 million in annual sales. But KTI has bigger plans for the firm.
``We're looking to move into a larger facility and be operational there by the end of the year,'' KTI President Marty Sergi said by telephone. ``We will expand the equipment and employment base as well as warehouse space. Currently, the plant is running at 1.5 million pounds per month, but that will dramatically increase.''
First State sells its regrind directly to end users. KTI plans to adopt this strategy at other locations, Sergi said.
KTI also operates FCR Plastics, based in Charlotte, N.C., and Manner Resins Inc., a trading and brokerage operation that handles more than 40 million pounds of post-industrial plastics a year.
FCR has 27 plants that clean and repelletize mostly post-consumer linear low and high density polyethylene. The unit employs nearly 1,000 and recorded sales of about $40 million last year.
``First State ties in perfectly with FCR's high density operations and Manner, a marketing company,'' Sergi said. ``This fills in how we participate in the plastics business. And there is more to come.''
KTI, based in Guttenberg, N.J., also operates waste-to-energy incinerators and paper, metal and waste-ash recycling facilties.