AXION inks recycled plastics deal worth $42 million

AXION inks recycled plastics deal worth $42 million

By Bobby Elliott, Plastics Recycling Update

Dec. 5, 2013

Shortly after building-product manufacturer AXION launched its own recycled plastics division in Ohio, the company announced a three-year contract to become a supplier for a major thermoplastics company. According to a press release, the deal is expected to add $42 million in AXION revenues.

AXION, a publicly traded company known for its railway ties and building products made out of recycled plastics, recently purchased assets from Y City Recycling of Ohio to effectively take over the company's Zanesville, Ohio facility and turn it into an AXION subsidiary, AXION Recycled Plastics.

Between July 1 and Sept. 30 of this year, the Zanesville plant, under Y City management, generated revenues of more than $2 million, a number AXION had indicated it want to at least double as AXION Recycled Plastics.

The unnamed partner in Tuesday's supplier contract announcement was referred to as "one of the largest heavy gauge thermoformers in the U.S." The partner firm will place monthly orders of high molecular weight high density polyethylene (HDPE HMW), and the contract will be "renewable in 12-month increments."

AXION president and CEO Steven Silverman highlighted the deal as a major step for the company, which plans to continue developing its recycled plastics processing capacity and supply chain. "In such a short period, we have demonstrated immediate success for our newly launched subsidiary," Silverman stated. "This contract strengthens our presence as a provider of reprocessed plastics and we anticipate receiving more contracts."

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