Nonmetallics Department

Avangard Industries Ltd. and Innovative Commodities Group (ICG), two Hispanic-owned plastics recycling, processing and trading companies based in Houston, have announced that they will merge to form Avangard Innovative.

The companies have not disclosed the terms of the deal.

The new company, to be based in Houston, will provide recycling services, commodity trading and plastic material processing as well as environmental impact studies to corporations and municipalities.

The companies will begin integrating their operations during the fourth quarter of 2006, with Avangard Innovative’s formal operations beginning Jan. 1, 2007.

According to a press release, Avangard Innovative incorporates the strength of Avangard’s position in the post-consumer market with ICG’s post-industrial recycling programs to provide greater supply and sales opportunities around the world. The company will have service concentrations in North America, Central America, South America, China and India.

"The new company, Avangard Innovative, will allow us to provide a stronger global reach, as well as improved market fulfillment both nationally and internationally," Rick Perez, CEO and principal of ICG, says.

When the merger is complete, Perez will serve as chief executive officer of Avangard Innovative.

"Some of the strongest growth in the industry is currently in Latin America," Arturo Creixell, CEO and principal of Avangard Industries, says. "By merging, we will be in a position to take maximum advantage of the developing Latin America market."

He continues, "The impact of the merger will greatly benefit our current and future customers and vendors through increased consistency of volume availability, higher quality controls and enhanced customer service throughout the sales and service transaction cycle."

Creixell will serve as chief operating officer of Avangard Innovative.

Upon completion of the merger, the company will operate 19 processing plants and 20 branch offices, with 1,200 employees worldwide.

WHI Capital Partners, a Chicago-based private equity firm, has acquired Container Recycling Alliance (CRA), the glass recycling division of Waste Management Inc.

CRA, based in Lombard, Ill., operates eight glass recycling facilities in the United States. The company processes around 500,000 tons of glass per year and is the second largest operator of glass recycling facilities in the United States. CRA uses automated ceramic detection and color sorting, as well as full bottle destruction and decasing capabilities.

"The rise of energy costs has created strong demand for clean cullet by the container manufacturers who are working to maintain their profit margins," Tom Riek, CEO of CRA, says. "We look forward to working with our customers, and establishing new supply sources, to provide the highest quality product to meet existing and future demand."

Riek partnered with WHICP to purchase CRA, which he previously ran for Waste Management. He served as president of CRA from 2001 to 2004 before being promoted to finance director of Waste Management Recycle America.

"CRA produced some of its most profitable years under Tom Riek and his team’s leadership," Adam Schecter, WHI Capital Partners managing partner, says. "Tom is a proven CEO with tremendous operational expertise as well as a keen ability to develop longstanding and mutually beneficial relationships with key suppliers and customers."

Along with the acquisition, the two parties entered into a long-term supplier agreement through which Waste Management will continue to supply the CRA plants with the collected glass.

Vetrazzo LLC has begun producing and distributing Vetrazzo recycled glass surfaces in Northern California aided by a California Department of Conservation grant.

Counter Production, which closed earlier this year, invented and first produced the Vetrazzo surfaces in 1997. Vetrazzo LLC, which was formed under new ownership, purchased the rights to Vetrazzo and established operations in Richmond, Calif.

Earlier this year, the California Department of Conservation awarded Vetrazzo a $1.29 million grant for developing a new market for California’s curbside glass. It is estimated that in the first year of production, Vetrazzo will transform 333 tons of recycled glass into functional surface products.