JBI shutters plastics recycling facility in Ontario

JBI shutters plastics recycling facility in Ontario

By Editorial Staff, Resource Recycling

Plastics-to-oil conversion company JBI has announced the closing of its facility in Thorold, Ontario.

Eight employees will lose their jobs as a result of the cost-saving move. According to a press release, JBI plans to rely on "processor-ready plastics" at its remaining plastics-to-liquid-fuel processing center, which is located in Niagara Falls, New York.

All told, JBI expects to save $800,000 annually thanks to the move. That figure adds to the $1.1 million the company says it will save each year as the result of a roughly 25 percent workforce reduction the firm made in July.

JBI's corporate communications and investor relations manager Chris Irons explained to Resource Recycling that the decision to close its Canadian plant came down to profitability. "What we found was that we can get the plastic delivered here [at the New York facility] pre-processed. Right now the company isn't profitable and the goal has been to reduce as much cost as possible. It's an unfortunate measure, but we feel that in the end it's a step forward for the company," Irons stated.

In January, the company settled a Federal Securities and Exchange Commission lawsuit that alleged the company violated anti-fraud rules.

JBI made more news earlier this summer when it announced a partnership with Crayola to recycle the company's end-of-life markers. Because Crayola sends processor-ready plastics to JBI, the closing will not affect the partnership, Irons confirmed with Resource Recycling.

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