County seeks to expand, enhance recycling operation with new facility.
As Montgomery County, Maryland, develops its Aiming for Zero Waste plan and evaluates its recycling and waste program, the county is seeking a new site to expand and modernize operations at its materials recovery facility (MRF).
The county’s MRF, which opened in 1991 and was designed to process 80 tons of commingled recyclables per day, is receiving 130 to 170 tons per day, double the capacity of the original design, the county says. Excess materials are being shipped to processing facilities outside of the county and state. In addition, the county’s paper processing facility, which opened two years ago, is also operating over capacity.
While the county boasts a residential and commercial recycling rate of 60 percent, Montgomery County’s Department of Environmental Protection (DEP) wants to increase diversion and improve the recycling operation. In order to do so, the DEP recently began a search for a larger site or multiple sites that would allow for expansion and enhancements, including robots and optical sorters. The county is considering partnering with other counties in the region to rebuild the recycling system.
“By utilizing technology and economies of scale, we can create new efficiencies, improve revenues and launch the next generation of recycling for an industry in desperate need of an upgrade,” says DEP Director Adam Ortiz. “The key reason recycling is struggling is that we have 1990s systems, but expect 2050 results. It is our duty to take the leap into the next age of recycling.”
The county generated more than 1 million tons of waste and recyclable materials in 2017. Of that, 649,437 tons were municipal solid waste (MSW), 369,125 tons were recyclables and 275,345 were mixed C&D material, which were either recycled, sent to landfill or incinerated.
Commingled recyclables, including glass, plastic bottles and aluminum cans, and mixed paper from single and multifamily homes are processed at the MRF, which employs 59 sorters in the commingled area of the MRF daily. Materials are then baled and shipped to paper mills or manufacturers to be made into new products, the county says.
The county says it is looking to invest in technology at the new site, including optical sorters and robotic systems. The upgrades would address contamination in the recycling stream as well as result in higher recycling rates and higher commodity prices, the county says.
April 2018, the county initiated its Aiming for Zero Waste plan. Task five of the plan is to consider enhancements and expansions to the current recycling system. With an overall goal to increase diversion and achieve the county’s zero waste vision, the plan is centered around reduction and reuse, recycling and organics collection and diversion.
In its request for recycling facility real estate issued July 15, the county says, “Given the age of the MRF and the operational capacity deficiencies, as well as the capacity deficiencies of the PPF, the county is developing alternatives for improved capacity by expanding or relocating county operations to sites in and around the region.”
The county is also exploring solutions to organics and construction and demolition processing operations. Options for food waste include a “full-scale” residential organics curbside collection program. The county says it would implement a pilot program first before developing a full-scale program and building a new processing facility to manage food scrap.
The county is accepting submissions for a new recycling facility site through Sept. 20.
Company’s Grand Rapids, Michigan-headquarters also certified to ISO 14001 and ISO 45001 standards.
Tech Defenders, a Grand Rapids, Michigan-based company that repurposes and remarkets mobile electronic devices, recently received R2 (Responsible Recycling Practices), ISO 14001 and ISO 45001 certifications for its Grand Rapids headquarters location.
Tech Defenders is an information technology asset disposition (ITAD) and electronics repair depot servicing high-volume education and enterprise customers. The company offers end-to-end life cycle services designed to minimize ongoing maintenance costs and maximize the recovery value of aging and obsolete technology.
According to SERI (Sustainable Electronics Recycling International), Hastings, Minnesota, the R2 Standard “provides a common set of processes, safety measures and documentation requirements for businesses that repair and recycle used electronics. R2 is rigorously and independently audited, emphasizing quality, safety and transparency.”
The ISO 14001 Standard focuses on environmental management systems, while ISO 45001 is focused on occupational health and safety.
“Our company has always practiced responsible disposal and reuse of retired products, but by obtaining these certifications, it provides our partners peace of mind that our company has undergone an extensive audit, which concludes that our procedures align with SERI and EPA (Environmental Protection Agency) standards,” says Connor Sweeney, chief operating officer of Tech Defenders. “If you visit the Tech Defenders facility, you will find a number of safety and security measures in place throughout the facility: gated and badge-controlled entrance and exits, including metal detectors, dock security and security personnel to ensure data privacy and safety for our customers, employees and inventory. All exceeding the required industry standards, our operations staff strives daily to be innovative and serve our partners in industry-leading ways.”
Pete Terryn, Tech Defenders senior director of operations, adds, “Considering the sensitivity around private information and the negative effect of e-waste has on our environment, it is important to choose a partner that invests in certifying its process. Obtaining these certifications was a long and tedious process, but it was important in providing transparency for current and future partners.”
During a Q2 earnings call, Casella said it has pushed more than 90 percent of commodity risk back to customers.
Casella Waste Systems, Rutland, Vermont, released its second-quarter financial earnings Aug. 1, reporting a revenue of $187.5 million for the three months ended June 30.
More highlights from the quarter include:
Company Chairman and CEO John Casella joined other company executives on an earnings call to discuss Q2 activity in terms of the company’s five key strategies laid out in its 2021 plan. Here are the highlights from John Casella.
Strategy one: Increasing landfill returns
“…As we drive price on existing volumes, we are also replacing lower price streams with higher price customers, which blends up overall pricing and enhances our returns.
“That said, we did experience a couple of notable adjusted EBITDA headwinds in the second quarter related to higher cost due to a very wet spring, particularly in May and June. And these costs have moderated into Q3 as things have begun to dry out. The expected closure of the Southbridge Landfill in November 2018, and higher operating costs at the Ontario Landfill as we worked in the second quarter to resolve odor issues and make site improvements to resolve other issues—most of this work was completed by the end of the second quarter.”
Strategy two: Driving profitability in hauling business
“As we experienced heightened inflation related to disposal recycling and labor, it’s important that our pricing programs are nimble as we aim to outpace costs and expand our margins.
”We have continued to find success in our ability to adjust pricing quickly, and as such, we advanced 5.5 percent collection pricing in the quarter. In several markets, this was not enough to price to overcome inflation. We are working hard to drive through further operating efficiency and review profitability of our book of business and advance further pricing to offset additional inflation.
“At the same time, on a monthly basis, we continue to adjust our SRA [Sustainability/Recycling Adjustment] and E&E [energy and environmental] fees based on market conditions. These programs are working well to offset recycling, commodity pressures, environmental and regulatory costs.”
Strategy three: Creating value with resource solutions
“We built recycling infrastructure that helps to insulate us from volatility and declines in the global recycling markets through our third-party recycling processing contract structure, which allows us to pass commodity risk back to the customer, coupled with our SRA program, which is fully offsetting the commodity risk on our intercompany volumes.
“With this, year-to-date declines in recycling commodity prices have not materially impacted our 2019 recycling forecast. On July 1, we entered into a new recycling processing contract with the city of Boston that reset pricing into appropriate levels to cover current low commodity prices or passing commodity risk back to the city.
“As we have discussed previously, this contract was a significant headwind for us in the recent past, so this was a nice win for the company that allows us to garner an appropriate return on our recycling assets. As we continue to make progress restructuring our third-party contracts, we are also focused on enhancing our contamination fee program, which should help drive improved customer behavior with recycling.
“We’ve also recently kicked off two recycling equipment upgrade projects, which will reduce operating costs and improve the quality of our outbound materials. … A significant driver of the team success has been the ability to capture share of wallet for major industrial customers across our franchise.”
Strategy four: Using technology to drive profitable and efficient growth
“We are pleased with the progress we have made against this initiative over the last 18 months. A prime example is related to our 2018 launch of NetSuite. We are starting to see the benefits begin to play out as we grow the business and not add back-office headcount as we further simplify and better automate the purchasing process. We are getting better scale and we are well-positioned to drive further costs out of our existing processes.
“We have also experienced early success related to our new case management system, which serves to better integrate our sales and customer care teams. We will continue to target enhancing our responsiveness to our customers and improving their overall experience.”
Strategy five: Allocating capital to smart growth
“We’ve completed four acquisitions year to date with annualized revenues of roughly $18.5 million. As previously announced, we signed an asset purchase agreement to acquire select solid waste assets in Albany, New York, and Cheshire, Massachusetts, markets that are producing roughly $30 million of annualized revenues.
“We expect this transaction to close in the third quarter. This will be a great strategic fit to our assets. Given this acquisition, we are on pace again to seed our goal to acquire $20 million to $40 million of annualized revenues.
“We remain focused on driving synergies from acquisitions through the integration of our operations, operating programs, systems and back office. As we had previously discussed, we have completed the finance back office and systems integration work for all of the acquisitions completed in 2018. We remain bullish on the strength of our acquisition pipeline that overlays our existing operational footprint or that is adjacent strategic markets.”
The transaction combines two metal recycling solutions providers.
Mill Rock Capital Management LP, a private investment firm based in New York City, has announced that its affiliates have made a strategic investment in Dallas-based Venture Metals LLC and SI Metallics LLC in partnership with management. Mill Rock reports that Venture has acquired Versatile Processing Group Inc. (VPG), which is based in Indianapolis.
The transaction combines two U.S. metal recycling solutions providers of comparable size to create a platform with annual revenues of about $700 million, according to a news release from Mill Rock Capital Management. Further terms of the deal were not disclosed.
Venture is owned and operated by CEO Mike Uhrick and President Mark Chazanow. The company provides high-touch recycling solutions to the industrials, manufacturing, energy and metals sectors and supplies high-quality refined nonferrous and ferrous metals to domestic and international markets.
Versatile Processing Group serves as an industrial processor of nonferrous metals, servicing the copper manufacturing, electric utility and general industries. The company specializes in recycling nonferrous materials, including copper, brass, aluminum, zinc, tin, silicon and nickel products sourced from a diverse base of suppliers, with a particular expertise in difficult-to-process units. Services provided include wire and cable chopping, de-tinning and de-oiling, laboratory analysis and logistics.
The combined company will operate six processing facilities. Two of those facilities will be in Dallas and one facility will be in Des Plaines, Illinois; Houston; Nabb, Indiana; and Wills Point, Texas. The facilities are located in close proximity to customers as well as port and rail access points, Mill Rock reports in a news release announcing the acquisition. The combined organization will be led by Uhrick and Chazanow and the integrated executive teams of both organizations, supported by more than 200 associates. Through the transaction, senior management of both companies invested in partnership with Mill Rock.
“The Venture team and I are excited to join forces with VPG,” Uhrick says. “VPG is a well-respected company with committed associates, a high-quality management team, specialized processing capabilities and robust infrastructure. We are excited about the growth opportunities of the combined platform and the enhanced capabilities it will provide to all our loyal customers."
“Access to Venture's processing capabilities and global consumer reach represents a significant opportunity for VPG's customers. The transaction will allow us to serve them across a fuller range of metals, while allowing them access to our distribution channels worldwide,” Chazanow adds.
Sharma Rao, a senior principal at Mill Rock, will be joining the company in the role of executive vice president of business development. Rao has managed global metal supply chains at GE Aviation and Rolls-Royce, and was most recently the head of Metals and Strategy at Arconic Inc. In addition, Wayne Hale, Charles Heskett, Adi Pekmezovic, William Plummer and Christopher Whalen of Mill Rock have joined Venture’s board of directors in connection with the transaction.
Houlihan Lokey, Credit Suisse Securities (USA) LLC, Octant Partners and Milbank LLP advised Mill Rock on the transaction. Deloitte Corporate Finance LLC and Locke Lord LLP advised Venture. KeyBanc Capital Markets and Hunton Andrews Kurth LLP advised VPG.
The airport aims to reduce plastic waste, become first zero waste airport by 2021.
The San Francisco International Airport (SFO) is planning to ban the sale of single-use plastic water bottles. The ban will take effect on Aug. 20, according to a report in the Associated Press (AP).
The new rule will apply to airport restaurants, cafes and vending machines. Travelers will need to buy refillable aluminum or glass bottles if they do not bring their own, AP reports.
The airport is following an ordinance approved in 2014 banning the sale of plastic water bottles on city-owned property, according to AP. SFO retailers already are required to provide only compostable single-use to-go containers, condiment packets, straws and utensils.
The airport also published a Zero Waste Plan last year. SFO reports that it hopes to become the “world’s first zero waste airport by 2021.” The airport’s Zero Waste Plan outlines measures the SFO needs to take to achieve zero waste by 2021 and work toward becoming a Closed-Loop Circular Campus in the years that follow to control material inputs to maximize recycling and recovery and minimize waste materials generated onsite.