Company will accept processor-ready plastics for fuel processing.
JBI Inc., based in Niagara Falls, N.Y., has announced plans to close its recycling facility in Thorold, Ontario, by the end of September 2013 as it seeks to reduce its costs. In a statement, JBI, which converts waste plastics into liquid fuels, says its new executive staff decided to forego having a two-stage plastics delivery process in favor of dealing with processor-ready plastics delivered directly to its fuel processing site in Niagara Falls, N.Y.
In a press statement, the company notes that based on operational data from the first six months of the year, closing the plant will save it about $800,000 on an annualized basis. Additionally, in July 2013 the company announced additional cost reduction measures that are expected to save JBI around $1.3 million per year.
“Aggressively managing costs is a key component in positioning a company to eventually become cash flow positive. In keeping with the encouraging production data we’ve had to start the third quarter, these cuts were an important strategic move for us. We continue with the vision of procuring non-recycled streams of plastic that we can divert from landfill,” says Richard Heddle, JBI’s CEO.
JBI’s Chief Financial Officer Nicholas Terranova states, “We feel there is a great opportunity to reduce the cost of our fuel production, as a large portion of these costs have been associated with handling and preparing the plastic before it enters our processors in Niagara Falls. These measures are being taken to address these specific costs directly. Based on reviews of our cost of goods sold, we have realized that acquiring nonrecycled, processor-ready plastic is the easiest way to continue having adequate feedstock at a desirable cost while streamlining our supply chain.”
John Bordynuik, company founder and chief of technology for the company observes, “A recent procurement partnership with a company that has been able to provide us with great plastic that is processor-ready makes us believe there is ample supply to be delivered directly to our site. Consistent delivery and consistent on-site fuel production make it simple and effective for us to manage procurement in this fashion, while making sure that we abide by all necessary guidelines in our permitting."