Gaining Strength

Generation of plastic scrap is on the rise domestically, thanks in part to a pickup in auto production and a stronger consumer economy, according to a compounder and reprocessor based in the Great Lakes region.

A reprocessor of post-industrial and post-consumer thermoplastics based in the Southeast also reports a pickup in manufacturing activity in her area. “Factories seem busy,” she says.

Domestic demand remains strong, particularly for engineering thermoplastics. “Domestic demand is exceeding our supply right now,” the reprocessor in the Great Lakes region says.

He adds that HDPE (high-density polyethylene), GFPP (glass-fiber-reinforced polypropylene) and PC/ABS (polycarbonate/acrylonitrile butadiene styrene) are experiencing the biggest gains in demand driven by the growth of new markets for the company’s consuming clients. According to the Society of Plastics Engineers, GFPP continues to move into new applications, replacing metal or other plastics.

The reprocessor based in the Southeast, however, reports softer demand for engineering-grade material in her region. She adds that demand for commodity grades is strong, particularly for PP and PE.

While the reprocessor based in the Southeast is encountering softness in the export market in light of Chinese New year, the Great-Lakes-based reprocessor reports a pickup in export demand, particularly to China. “China is buying again, so exports are stronger, which ultimately leads to higher prices for materials in the U.S.,” he says.

In other news, a plastics recycler based in Ohio has announced the expansion of its Waco, Texas, operations.

Coll Materials, headquartered in Zanesville, Ohio, has added a second production line at its Waco plant. The new line, expected to be operational by the second quarter of 2012, will give the company the capacity to produce 200,000 Ecotrax railroad ties per year for Axion International, New Providence, N.J.

Axion has developed recycled structural composition technology that is used to produce 100-percent recycled plastic Ecotrax railroad ties and Struxure industrial building materials.

Brian Coll, CEO and president of Coll Materials, says, “Contract manufacturing has been a great avenue to supplement our recycling business. We are pleased to be working with another green company and look forward to growing our capabilities to meet the demands that Axion’s product brings.”

Axion CEO and President Steve Silverman says, “Our rail business continues to grow across multiple customers around the globe, and this additional capacity is needed to meet growing demand. Our relationship with Coll has grown since we first announced this partnership.”

He continues, “Like any manufacturing startup we’ve had our share of challenges, and Coll has been a good partner and stepped up to make sure we met them head-on.”

Silverman adds, “As we grow, we must remain quality-oriented. Too many companies grow too fast and cannot put out a consistent product. We refuse to make that mistake.”

Axion will be able to consume up to 37 million pounds of plastic scrap as a result of the expansion.

(Additional information about secondary plastics, including breaking news, is available at www.RecyclingToday.com.)