Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Videos
    • Podcasts
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Notable Leaders in Sustainability
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics Caps + Closures: A Global Online Event
    • Women Breaking the Mold Networking Forum
    • Bioplastics Live
    • Numbers that Matter Live
    • PFAS Live
    • Plastics in Politics Live
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Resin Prices Overview
    • Commodity Thermoplastics
    • High Temperature Thermoplastics
    • Engineering Thermoplastics
    • Recycled Plastics
    • Thermosets
    • Europe - Virgin
    • Europe - Recycled
    • Europe - Feedstock
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
April 14, 2015 02:00 AM

Canadian recycler headed for auction block

Michael Lauzon
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    A Canadian recycling company that could not climb out of a financial hole will have its assets sold at auction.

    Recyc RPM Inc., shuttered since last summer, will have assets at its headquarters in Beauceville, Quebec, and in St. Damien, Quebec, sold in two auctions, scheduled for April 28 and May 5.

    Recyc's troubles began in 2010 when it decided it needed a new business model to overcome poor market conditions for recycled plastics, according to public records. Company management decided the firm needed to upgrade operations to become profitable. A shortage of capital prevented Recyc from completing the upgrade. High operating losses in early 2014 swayed the company to shut down in June of that year and to seek protection from creditors while it reorganized.

    Quebec's provincial Ministry of Environment issued ordinances against Recyc because of release of contaminants. The company, unable to weather environmental liabilities, filed for bankruptcy on Oct. 6, according to a spokesman for Recyc's receiver, Raymond Chabot Inc. of Quebec City. A first creditors meeting was held Oct. 24 and a call for tenders was published on Nov. 1.

    In the midst of its problems last year, Recyc blamed its financial difficulties on expenses to deal with contaminants in collected plastics, inefficiencies in Quebec's recycling system and lack of government support. At the time, Jean Yves Bacle, Recyc's vice president of sales and marketing, claimed post-consumer plastics bales shipped to the company contained as much as 40 percent contaminants and included such materials as glass shards and unacceptable plastics. He estimated the firm was spending about C$100,000 (US$80,000) per month to send the contaminants to landfill. It also incurred high expenses to further clean up its feedstock streams, mainly sourced from municipalities. A Quebec government spokesman said last year that Recyc did receive funds to buy machinery.

    Recyc owes about C$8.2 million (US$6.6 million) to secured creditors, mainly financial institutions and a provincial investment agency. Unsecured creditors are owed C$11.2 million (US$9 million).

    Recyc had capacity to recycle about 50 million pounds per year of high density polyethylene and polypropylene. It employed about 90 prior to its shutdown. Public documents of unaudited statements show it had a net loss before taxes of C$4.8 million (US$3.8 million) in 2014. The loss in 2013 of C$2.5 million (US$2 million) compared with a net profit of C$155,000 (US$124,000) in 2012. Sales in 2014, at C$11.7 million (US$9.4 million), were 42 percent below 2013 sales, which were 15 percent lower than in 2012.

    The company's assets will be sold by auctioneers led by Perfection Industrial Sales. Equipment from both locations will be sold live and through webcast at Beauceville on April 28. A subsequent, online-only auction will be held May 5.

    Slated for auction are shredders and granulators, stainless steel wash lines, optical sorters, extruders, pelletizers, dust collectors and bulk material handling equipment. Perfection Industrial will hold the two auctions in conjunction with Infinity Asset Solutions and Federal Equipment.

    Recyc was Quebec's pioneer in post-consumer recycling after it was established in 1989. It also was the first in the province to help establish curbside recycling carts in the 1980s and 1990s. It was owned by Louis and Luc Metivier, members of the family that started major molder and extruder IPL Inc. of St Damien.

    RECOMMENDED FOR YOU
    M. Holland selling 3D business after Ravago deal
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    An 8,000-ton dream for Milacron, 20/20 Custom Molded Plastics
    2
    Sonoco closing California plant, laying off more than 300
    3
    Plastics industry ‘not running away from its own problems,' ACC's Eisenberg says
    4
    ExxonMobil completes $2B Texas expansion
    5
    ACC campaign targets Biden administration's ‘regulatory overreach'
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Find more newsletters at plasticsnews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Notable Leaders in Sustainability
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Videos
      • Podcasts
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics Caps + Closures: A Global Online Event
        • Women Breaking the Mold Networking Forum
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
      • Editorial Livestreams
        • Bioplastics Live
        • Numbers that Matter Live
        • PFAS Live
        • Plastics in Politics Live
        • PN Live: Mergers and Acquisitions
        • Polymer Points Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Resin Prices Overview
      • Commodity Thermoplastics
      • High Temperature Thermoplastics
      • Engineering Thermoplastics
      • Recycled Plastics
      • Thermosets
      • Europe - Virgin
      • Europe - Recycled
      • Europe - Feedstock
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified