Pallet maker Greystone Logistics Inc., which already recycles plastics to use in its pallets, has formed a recycling division at its complex in Bettendorf, Iowa, to sell recycled pellets to others.
Greystone of Tulsa, Okla., announced March 9 it has already installed one 6-inch extruder with annual capacity of 14.6 million pounds. The company plans to install a second extruder by June 30 and a third in the first half of next year for total capacity of 43.8 million pounds.
The division will mainly recycle high density polyethylene, as well as some polypropylene and other thermoplastics.
There is increasing demand for recycled resin and there is a lot of demand for it in that region because there is a lot of manufacturing infrastructure near Bettendorf, said John Brown, Montreal-based director of Greystone's resin recycling division.
We feel ... the lift in virgin pricing is helping to further increase demand, he said in a phone interview. The current demand exceeds our ability to supply it.
The recycling division will make mixed-color and natural PE and PP resins, including fractional melt and injection grades.
Greystone makes pallets from 100 percent recycled material.
We have the pallet business, the pallet-leasing business and now the recycling business, Brown said. 'We are looking at the potential for this being a $20 million [per-year] business. If that happens, sales from the recycling division will exceed the company's current revenue, which was $16.7 million in the fiscal year ended May 31.
The recycling division is located in one of two 60,000-square-foot plants the company operates in Bettendorf, and is in the same plant where the company recycles plastics for its own needs using an 8-inch extruder.
Conservatively, the company expects to produce 12 million pounds of resin in 2010 and 30 million in 2011, Brown said. The first extruder, installed in January, has been running 24/7 since Feb. 1 and the company expects the second extruder to be operating 24/7 within a matter of days after it is installed. Each line will create around eight jobs.
Brown said he is not concerned about obtaining material.
If you look within a 300-mile radius of Bettendorf, there are a lot of small to midsized cities with good recycling streams, but they are off the beaten track, he said. So we felt there was a good availability of both post-industrial and post-consumer feedstock to tap into.
He added, The availability of material is quite high in our regional sweet spot.
The company will lease extrusion equipment for the recycling division from Yorktown Management and Financial Services LLC, a company owned by the Greystone CEO Warren Kruger.
Kruger said the company expects $4 million in gross sales from resin in calendar-year 2010.
In the last two years, Greystone has used nearly 50 million pounds of post-consumer and post-industrial plastic, both pellets and flake, to make pallets, largely for the beverage and pharmaceutical industries.
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