Nonmetallics Department

STUDY PREDICTS GROWTH IN NORTH AMERICAN PAPER MARKET

Moderately rising demand for recovered paper will likely put pressure on marginally competitive mills and increase price volatility during the remainder of the decade, according to a recently completed study from Jaakko Poyry Consulting, Tarrytown, N.Y. The report, entitled, "North American Recovered Paper 1996 Update," summarizes recent significant events and identifies key trends likely to impact future supply and demand balances for major grades of recovered paper generated and/or consumed in North America. The report is the first in an annual series of recovered paper supply and demand forecasts for the largest fiber markets of the world.

"The study forecasts recovered paper consumption to increase at a 2.4 percent average annual rate in 1997 and 1998 as operating efficiencies improve at recently built consuming mills," says Mary Cesar, vice president of fiber resources for Jaakko Poyry. "This growth will also help spur recovery rates. By 2000, recovered paper recovery is expected to reach almost 49 million metric tons or 47 percent, compared to about 40 million metric tons recovered in 1995, which represents regional recovery of 44 percent of total paper and paperboard consumption."

Cost of the report is $2,500, and it is available by calling (914) 332-4000.

ATR MAKES MOVES IN CRUMB RUBBER INDUSTRY

American Tire Recyclers, Jacksonville, Fla., one of the top producers of tire crumb in the United States, has made several recent moves in that market. First, the company is in the midst of ramping up a new devulcanizing operation to produce crumb treated with De-Link from STI-K America, Washington.

Second, the company is installing a new ambient granulating system from an Australian manufacturer that can reduce a whole tire down to crumb in one pass, saving several processing steps, according to ATR.

And finally, the company is intensifying its marketing efforts to promote and sell its patented Rebound soil amendment product made of recycled crumb rubber mixed with organics. The crumb rubber helps eliminate soil compaction and increases turf aeration. Dubbed the Rebound Network Organization, ATR is recruiting dealers, distributors and suppliers committed to selling the product.

NEW ENVIRONMENTAL TO BUY NEVADA ENVIRONMENTAL

New Environmental Technologies Inc., West Hollywood, Calif., plans to buy Nevada Environmental Technologies Inc., Reno, Nev., upon approval from its shareholders. New Environmental Technologies intends to establish a tire recycling and crumb rubber product manufacturing facility in Reno, and will manufacture and sell crumb rubber and a wide range of crumb rubber products throughout the United States. The company also plans to expand its activities into export markets.

To be installed in Reno are a new ambient based granulation system comprising four granulators, a high-volume stationary shredder and two product manufacturing machines. The projected processing input is 24,000 tons of used tires per year.

ENSLEY SELLS GLASS UNIT TO STRATEGIC MATERIALS

Ensley Corp., a processor of plastic and glass located in North Canton, Ohio, has sold its glass recycling operations in Zanesville, Ohio, to Strategic Materials Inc., Houston, reportedly the largest glass recycler in the United States with more than 40 locations across the country. The glass recycling operations use state-of-the-art processing equipment.

Ensley Corp. sold the operation so that it can better focus on its plastic recycling operations, according to company officials. After serving the post-consumer plastics industry for more than eight years, Ensley plans to enter into the post-industrial plastics market.

The company also plans to not only expand its plastics recycling business, but also to build new facilities and possibly acquire other plastic recycling companies, according to Ensley officials.

PLASTICS RECYCLING FIRM RECOVERS AFTER FIRES

After two separate fires at the end of 1996 caused more than $3 million of damage to its plastic reclamation facility in Rodgers, Ark., Advanced Environmental Recycling Technologies Inc. Springdale, Ark., is looking to rebuild operations. "The company intends to promptly initiate repair of structural and roof damage, in conjunction with some equipment removal and repair work regarding the December fire," says Joe Brooks, president of AERT. "Due to the structural damage in a portion of the manufacturing plant, some rebuilding will have to wait until the damage is repaired due to safety considerations. It is our intent to bring this facility back on line and into operation in the near future."

AERT’s Rodgers facility recycles post-consumer low- and high-density polyethylene plastic for use in its line of composite plastic/wood building materials. AERT is currently running three extrusion lines at its Texas facility and has continued to supply its customer base.

U.S. PLASTIC LUMBER CORP. BUYS SEVERAL COMPNIES

U.S. Plastic Lumber Corp., Boca Raton, Fla., a maker of plastic lumber products from recycled feedstock, has been on an acquisition binge lately.

First, the company bought Recycled Plastic Industries, Green Bay, Wis. The acquisition expands the company’s product line, and is expected to boost the firm’s revenues by nearly $3 million annually.

Second, U.S. Plastic Lumber has completed the acquisition of three more companies – Custom Pac Extrusions Inc., a maker of plastic lumber in Chagrin Falls, Ohio; Environmental Specialty Products Inc., a maker of plastic signs headquartered near Los Angeles, Calif.; and Advance Remediation and Disposal Technologies Inc., a soil remediation firm located near Philadelphia in Coopersburg, Pa.

The acquisitions, which collectively generated sales volume of approximately $5 million in 1996, were consummated for an undisclosed amount of cash and stock. Management of the acquired companies will be retained.

Mark Alsentzer, president of U.S. Plastic Lumber, says that these acquisitions are in keeping with the company’s goal of vertically integrating its plastic lumber and recycling divisions, growing its already diverse product line while simultaneously expanding the company’s marketing and distribution network throughout the United States.

These acquisitions bring to five the number of companies U.S. Plastic Lumber has acquired since Alsentzer took over the helm in 1996. He previously served for four years as vice president of a subsidiary of Wayne Huizenga-led Republic Waste Industries.

TECHNOLOGY TO SORT NEW RESIN ON THE WAY

Magnetic Separation Systems Inc., Nashville, Tenn., in conjunction with Amoco Chemicals, Shell Chemical Co. and Wellman Inc., recently completed the first phase of a cooperative program to develop a new technology to automatically sort polyethyelene naphthalate resin containers from polyethylene terephthalate. Many virgin resin producers want to introduce containers made of PEN variants because of its improved gas barrier (it is more efficient in holding in carbonation from soda and beer), high temperature resistance, higher strength and greater barrier to ultraviolet light.

An initial test of a PEN sensor for high-speed sortation has proved promising as it was able to handle throughputs of 1,500 to 2,500 pounds per hour for four types of baled and labeled containers with different PEN content that were dispersed in typical deposit, deposit curbside, curbside and mixed plastics post-consumer PET bales.

The field tests indicate that the technology to automatically sort PEN containers from PET ones in an MSS BottleSort system has commerical potential with further development, according to Pete Booth, research and development manager of recycling for Wellman.

Work on the project is also being funded by The Coca-Cola Co. Full test results should be available to recycling industry officials by the end of 1997.

PLASTIC CONTAINER VOLUME UP IN CALIFORNIA, BUT RATE DROPS

More than 1 billion polyethylene terephthalate plastic soft drink bottles were sold in California in 1996; however, the state’s PET recycling rate dropped to a five-year low of 59 percent, according to figures released by the California Integrated Waste Management Board, Sacramento, Calif. The drag in PET container recycling also brought down the state’s overall beverage container recycling rate, which fell below 80 percent for only the second time since 1990, according to Californians Against Waste, also located in Sacramento.

The main reason for the drop appears to be based on economics. "Plastic is continuing to eat away at glass and aluminum’s share of the market," says Mark Murray, executive director of CAW. "Unfortunately, that means we’re trading materials with a relatively high scrap value and recycling rate for a material with low value and recycling rate."