Since virgin plastics company Far Eastern New Century acquired Phoenix Technologies last June, the U.S. PET reclaimer has lost substantial amounts of money.
Recently released English translations of Far Eastern New Century’s (FENC’s) third-quarter 2019 financials provide more details about last year’s acquisition of the Bowling Green, Ohio reclaimer, as well as its net income since the acquisition.
Phoenix Technologies has a capacity of up to 80 million pounds of RPET per year, selling into food and drink packaging and other markets.
Taiwan-headquartered FENC, through its subsidiary APG Polytech USA Holdings, bought a 90% stake in Phoenix Technologies International LLC on June 5, 2019. It paid nearly 314 million new Taiwan dollars (worth about $10.5 million U.S. today), although it also acquired nearly $7.7 million in cash and cash equivalent that Phoenix had in its accounts, so FENC’s net cash outflow was closer to $2.8 million.
FENC’s third-quarter report also shows that between the June 5 acquisition date and Sept. 30, the end of the quarter, Phoenix Technologies brought in about $11.4 million in operating revenue. During that time, its net income was roughly negative $2.5 million.
A company investor relations representative told Plastics Recycling Update “FENC has been transforming Phoenix in all aspects and has a positive outlook for the recycled polyester industry,” but he declined to provide details about Phoenix Technologies’ operation or why it had negative income.
Phoenix Technologies was one of a handful of U.S. reclaimers to be acquired by virgin plastics companies in 2019. In addition to that sale, the following U.S. PET reclaimer acquisitions took place:
- DAK Americas acquired Perpetual Recycling Solutions, which produces 100 million pounds of RPET per year, for an unspecified sum.
- Indorama Ventures acquired Custom Polymers PET, which has a capacity of about 80 million pounds per year, for about $30 million.
- Indorama acquired Fontana, Calif.-based Green Fiber International, which has an annual capacity of 88 million pounds. That deal was announced in December, but Indorama hasn’t yet published its full-year 2019 financial report, so details of the acquisition aren’t yet available.
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