Continuous attention to details can help recycling plant operators save packaging costs.
The processing machinery of the recycling plant will incur a series of ongoing operating costs related to a series of factors. Managing these costs, including the right decision when to invest in new equipment, can distinguish between a profitable and an unprofitable year.
When recyclers think of replacement (or worn) parts, they think of shredding equipment. Sorting and screening equipment may first be considered maintenance tasks and concerns about calibration and set-up.
In contrast, balers seem to be more of a “plug and play” category, but the people who operate and maintain these machines can point out many decisions and procedures that can have a huge impact on the cost of compressed bottles. Or press the paper into a dense big bag.
There are many types of packaging equipment used in the recycling industry. It ranges from small vertical models placed in retail backstages to large horizontal balers working in material recovery facilities (MRF) to high-power black balers designed to squeeze steel into compact cubes.
The price of the baler is naturally related to its size, output and compression force. The cost of a back-end vertical baler may be a single-digit percentage of what a large MRF operator pays for a new, high-capacity two-plunger or squeeze horizontal baler.
Roy Daily, CEO of Himes Service Co. and Daily Recycling Equipment, said: "The current price of a new two-piston baler ranges from $300,000 to $1 million." The two companies based in Waco, Texas Sales and maintenance of a series of balers, including two-post balers.
He added: "The final price will depend on the quantity required and the amount of material [buyer] wants to process."
Daily said that current packer operators and those who buy second-hand machines need to keep in mind a key word: maintenance.
Visiting or evaluating the maintenance history of a used packer can make a difference between a satisfied buyer and a buyer who will experience buyer's remorse.
Daily even says that the price people pay for a used packer “is completely dependent on how the packer is maintained during use. If the packer is properly maintained, it will retain a large portion of its value. Otherwise, it will be counterproductive. "
Daily said that a packer owner who owns an aging machine can also consider the prospect of rebuilding.
He said: "The cost of the rebuilt baler will be much lower than the new baler, and the time to market may be much faster."
Daily uses a two-piston baler as a benchmark, adding: "The cost of retrofitting the existing baler is about 10% of the cost of the new baler, and it will take a week or two to complete."
In a market where new baler manufacturers may have a backlog, “a new baler usually takes three to four months to be delivered,” he added.
Packing machine operators face ongoing operating costs, and projects in this category include packing lines, electricity, labor, and preventive maintenance.
The corporate chain of command usually emphasizes the mission of controlling costs. For baler operators, this mentality can be helpful when it comes to electricity, wiring, and labor expenditures. Daily means reduced maintenance, but it usually increases the total cost.
Packing machine manufacturers tend to compete with each other, launching new models designed to consume less power and minimal wires, and provide automation features that are expected to control operator labor costs.
"New technologies in baler manufacturing are producing faster and more energy-efficient products," Daily said. He added that some of these technologies can be transferred to older models. "All existing balers can be retrofitted with new wire layers or operating systems. In turn, this will make existing balers more energy-efficient, faster in production, and increase overall savings and profits."
Daily stated that the standardization of components provides another efficiency advantage. "Most manufacturers are creating more standardized equipment, which means that parts are easier to have off-the-shelf, not just [from] the manufacturer," he added.
Daily energy consumption is estimated to account for 25% of the operating cost of the owner of the two-piston baler, while the packaging line procurement accounts for 25% of the operating cost. This makes half of all operating costs related to labor and maintenance considerations.
Most packaged recyclables receive several wires to help ensure that the bales stay tight and in place as they travel from the recycling facility to the next destination.
Samuel Packaging Systems Group, located in Woodridge, Illinois, is one of the equipment companies that provides recyclers with a second option in the form of polyester plastic strapping.
The division of Samuel, Son & Co. Ltd. released its Gen2 PET strapping system in the summer of 2020. Samuel Packaging Systems Group describes Gen2 as an update to its existing Samuel PET strapping system.
The company claims that the polyester strapping of the system is safer than steel wire while improving strength and sealing performance. In the case of packaging plastic, polyester tape can provide "a consumable material produced from recycled polyester components," Samuel added. The company said that the recycled content polyester tape is produced at its plant in Fort Mill, South Carolina.
Samuel refers to Gen2 as a "plug and play strapping system", which can be applied to any double plunger baler. The company said that the all-electric system eliminates the need for hydraulic oil and reduces the chance of maintenance problems.
According to Samuel, the Gen2 system and its strapping are suitable for packaging a variety of materials, including non-ferrous metals, paper and other single-stream recyclable materials and cubes where waste is converted into energy. Samuel stated that it provides nationwide maintenance support for the Gen2 system, including training, parts and services; technical telephone support; preventive maintenance programs; reconstruction procedures; and loan programs.
The word "routine" is usually placed before the word "maintenance", and packer owners can consider this well. "Training employees to perform daily housekeeping and preventive maintenance tasks, such as good housekeeping and daily inspections, is the first line of defense for packer owners to control operating costs," said Daily.
He also advocated that the packer owner sign a contract with a manufacturer, distributor, or independent service provider to perform "regular (monthly or quarterly, depending on the quantity) preventive maintenance." He said that providing contact with "equipment experts" is "key."
Daily said that if internal employees take the time to receive training and can detect imminent problems visually (or sound), then the cost savings are obvious. "When problems are found in daily inspections or regular preventive maintenance, they must be corrected immediately and correctly."
Daily opposes the notion of quick patching that seems frugal. "The rigging workaround may cause excessive wear and tear on the machine, resulting in reduced efficiency and increased maintenance costs."
He said that if the baler is used as the final processing step of a large-capacity MRF with a large number of sorting lines, screens and optical scanners, its maintenance becomes even more important.
"The baler is the core of the recycling system. When the baler lacks proper maintenance, the entire system will be affected, and in turn, the bottom line will be affected," Daily said. "A properly maintained baler will enable the owner to control and control any operating costs."
Daily stated that he has seen that good maintenance practices can create a return on investment by extending the service life of the baler and by retaining the old equipment that can be sold if the facility exceeds the existing baler.
He warned: “A poorly maintained baler may need to be replaced within three to five years.” Instead, Daily said, “Our customers use 30 to 40-year-old [Harris] HRB8 and HRB10 two plunger balers. Because of regular maintenance and line changes, the processing performance of these balers is still very good."
He concluded: "I cannot stress the importance of good maintenance too much. The cost of maintaining the baler is much lower than the cost of replacing the baler. Properly maintained equipment has a longer service life, higher efficiency, and less downtime. "
This article was originally published in the February issue of Recycling Today. The author is a senior editor of Recycling Today. You can contact btaylor@gie.net via email.
LRS CEO Alan Handley seeks to use Macquarie's investment to promote recycling in the Midwest.
LRS, headquartered in Morton Grove, Illinois, announced on September 9 that it has become the latest company to spend 6.9 billion through Sydney-based Macquarie Asset Management (MAM) through Macquarie Asset Management (MAM) Dollar-based Macquarie Infrastructure Partners is a junk company that has received substantial financial support. MIP) V Unlisted infrastructure funds.
This move marks the intention of LRS to expand its position as the largest provider of private waste, recycling and portable services in the Midwest and one of the largest suppliers in North America.
LRS CEO Alan Handley stated that although he is familiar with Paul Mitchener, senior managing director of MAM, and the company’s reputation in the industry through past investments in waste industry, WCA, GFL environment, WIN waste innovation and Solví, LRS and MAM It did start to penetrate earlier this year.
"We may start a conversation with [MAM] in the late spring and early summer," Handley said. "We have known Paul Mitchener and his track record in the industry for ten years or more. We feel that they have similar views on waste and recycling. We are looking for a large, long-term investment and more patient Capital, and an investor who understands the field. When we choose the next capital provider, these are important reasons for our team and myself."
The financial terms of the transaction have been kept confidential, but Handley described it as a major equity injection that allowed the company to simplify its capitalization table and monetize some early investors (such as Ironwood Capital, Closed Loop Fund, and Goldman Sachs). Has been working in the company for many years.
In addition, Handley touts MAM's knowledge of the industry and its history of helping the company develop as a key selling point.
He said that Macquarie’s experience in waste treatment has produced a new industry expert and resource Rolodex, which relieves LRS managers from having to spend time familiarizing themselves with the investment company’s industry inside and outside of the industry, and promotes the ability to more seamlessly transform data. Regarding things like backend systems and security.
Lakeshore Recycling Systems changed its name to LRS in April and was born in 2013 when the Chicago area company Recycling Systems Inc. and Lakeshore Waste Services were vertically integrated.
The merger combines the commercial transportation business of Lakeshore Waste Services with the recycling and transfer station assets of Recycling Systems Inc. in the Midwest.
After the merger, LRS is committed to strategically acquiring transshipment assets and commercial operations in the entire Chicago market, including recycling operations, demolition and construction sites, and transshipment stations. The company then began to expand to nearby states.
Since 2013, LRS has completed more than 30 strategic acquisitions in six states, including Illinois, Iowa, Wisconsin, Minnesota, Indiana and Michigan. These transactions help drive LRS's annual revenue to more than 350 million U.S. dollars. The company has nearly 1,500 employees and an asset base of 34 facilities, including landfill assets in Quad Cities markets in Iowa and Illinois.
Handley said that with Macquarie's support, the company has only scratched the surface of its growth potential.
"We have a very important, rigorously reviewed business plan for the next five to ten years," he said. "This Macquarie investment allows us to significantly accelerate the amount of growth we can achieve organically and through acquisitions," Handley said. "For the past eight years, we have been relying on incremental minority investment in the company to drive and support growth. Now everything has changed. Macquarie is our first majority investor, and the change in investment strategy We have access to a larger pool of capital, which will enable LRS to substantially increase and expand our growth plans throughout the Midwest."
From Macquarie's perspective, Michener said that LRS's growth record and executive leadership are the main motivations for investing in the company.
"Since its inception, LRS has continuously expanded its influence in neighboring markets and developed rapidly through winning new contracts and acquisitions," Michener said. "Their strong market position and reputation for quality service in the third largest metropolitan area in the country are very attractive, and their commitment to transfer is equally important. The opportunity to work with the young and aggressive management team led by Alan is also our approach The essential."
Handley said that Macquarie's investment will not change the company's growth strategy, but will magnify it.
Traditionally, LRS has invested in well-run companies that have both a reliable security record and a strong reputation for customer service. Although most acquirers in the waste sector may respond to similar strategies, LRS has further narrowed its focus to operations in locations that can support the company's recycling targets.
Handley said that the company that LRS may acquire must first consider what kind of recycling infrastructure is in place.
"We always treat waste and recycling space first with recycling as the orientation, and then provide supplementary waste services for the recycling base," Handley said. "Macquarie, the LRS board, and I are very aligned on this point. We think this is the future. We believe that old-school business plans that send items directly to landfills without transferring or recycling are outdated at best. The bad situation is very irresponsible. The status quo is certainly not a long-term solution to the potential survival problem that the world sees. This is our main theme and one of the reasons why we choose Macquarie. They are a world-class global company, very Pay attention to ESG, recycling and transfer."
When entering a new market with insufficient recycling, Handley said that LRS is committed to using its data and expertise to make the transfer feasible.
He said that the company will not enter a market where there is no obvious recycling demand, nor is it likely to enter a market where a strong recycling infrastructure is already in place. Due to the Midwest’s reliance on landfills, Handley classifies the area as a “target-rich environment” for recycling.
Handley said that historically, low landfill tipping is mainly due to this poor recycling infrastructure. Although this preference for landfill may apply to other companies, Handley said it runs counter to LRS's preference for the transfer priority model.
“The traditional status quo waste model is based on investing in trucks and personnel, collecting waste, and then transporting these materials to the nearest landfill as efficiently as possible. This model is mainly driven by the company’s profits at the landfill. It has little to do with recycling or transfer," he said. "Our model is significantly different. We still invest in the front end, we have excellent customer service, and we invest in people and trucks like our competitors. However, this is the similarity. Unlike the traditional model, LRS puts most of its capital (Manpower and infrastructure) are placed between our collection activities and landfills. We have invested a lot of time, intellectual property and energy to ensure that when materials pass through our website, we will select as many as possible, and Seek its beneficial reuse. For the ever-changing residues that we cannot recycle today, these materials will go to landfills. I think this is indeed the difference between LRS and almost every other company in our market."
Handley was quick to point out that when formulating the recycling business case, it was not all about the value of the product. He said that LRS currently has 27 different items and it prioritizes it from its picking line, although it would be great if some of the materials can be sold as merchandise, as long as LRS can transfer the materials to a certain place and cost Less than the cost of sending it to a landfill, the company makes money. This transfer depends largely on the company's continuous efforts to find end markets.
"Today's model is that if I can find beneficial reuse of the materials you throw away, and I can do it at less than the cost of reaching the landfill, then it is a win-win. It is A victory for the environment. It is a victory for individuals or companies that purchase or use useful reused materials. This is a victory for LRS because we generate profits in the process," he said.
Handley said the benefits of this strategy make it easy to prioritize recycling of LRS. Local government leaders, business owners, and residents with whom he spoke in the Midwest are increasingly advocating for more sustainable methods of handling their waste.
"They want to recycle, but they don't know how to do it. Therefore, we plan to really solve this problem and make it a core part of our future strategy," Handley said.
Handley said that LRS is currently operating in six states, and that number may increase to eight or nine by the end of the year.
In the arms race between large public waste companies, the rapid rise of LRS over the past decade has made it a major acquisition target. But despite enquiries, Handley stated that LRS has no desire to sell in the foreseeable future.
"We started out as a small, very family-oriented, very university-based group. We have grown and we have succeeded because we have not changed the core composition-flexible, enterprising, and doing things a bit like what other people like to do. Different," he said. "In my core team or stakeholders, it doesn’t make sense to want to change what has been working well for the past ten years. If there is something to change, then maybe we will reassess, but I don’t see anything that makes me Feel the need to change a great thing."
Although its commitment to recycling makes it look a little different among other waste management companies, Handley says it is this difference that provides a roadmap for the company's future growth.
"We are already one of the largest independent companies today," he said. "In 5 to 10 years, our goal is to become the largest independent company in the country and continue to do what we have been doing today. This proves to the world that you can be a good guardian of the earth, a good environmental steward, and make money. Do this. This is really our call; our basic mission."
The author is the editor of "Today's Waste" and can be contacted at aredling@gie.net.
The Environmental Research and Education Foundation of Canada (EREF-CA) is part of EREF in Raleigh, North Carolina. It has prepared a 132-page report describing the transfer of organic waste at the provincial, municipal and national levels in Canada.
This report entitled "The State of Organic Waste Management and Collection Practices in Canada" follows EREF-CA's research on the transfer of organic municipal waste materials through composting and anaerobic digestion (AD), including food waste and green waste). Bryan F. Staley and Suzie Boxman are co-authors of the report.
The organization stated: “Through waste-related sustainability policies, initiatives are mainly concentrated at the provincial or municipal level.” “As policies and collection plans become more common, get information about the amount and type of organic waste generated And accurate information about the infrastructure that can be used for management becomes important."
The report’s executive summary concluded that as of 2019, the Canadian government-affiliated organic management infrastructure consists of 328 composting facilities and 59 AD facilities.
EREF added, “The residential use of curb and falling organic matter management plans also support existing infrastructure, and 91% of the population lives in areas with some type of organic matter management plan.”
In 2019, Canada processed more than 4.8 million tons of waste organic materials, while the country's processing capacity exceeded approximately 5.7 million tons (excluding Quebec).
EREF wrote, “Although Canada has developed a mature organic processing sector in the past two decades, continued growth will require the integration of new policies and plans with the development of adequate processing infrastructure.”
The full report can be obtained by visiting the organization's website. Please visit www.eref-canada.ca/projects for more information.
The National Waste and Recycling Association (NWRA) announced the winners of its 2021 Recycling Award on September 2.
The 2021 Best Recycling Facility Award was jointly won by the Waste Management Hodgkins Material Recovery Facility (MRF) in Hodgkins, Illinois, and the Mazza Recycling Service MRF in Tinton Falls, New Jersey. The Hodgkins MRF of the Waste Management Company is a highly automated facility that can process 66 tons per hour. Known as the "Future MRF" of waste management, this is WM's largest recycling facility. MRF's control room monitors the performance of processing equipment and color sorters to better understand what is happening in the factory from a concentrated area. The waste management company believes that its future MRF will lay the foundation for future investments in residential recycling.
Mazza's single-stream MRF was built in 2020 and is designed to process 26 tons per hour. Today, MRF processes 35 tons per hour and processes single-stream recyclables from 880,000 residents. The facility is equipped with the latest technological advances and sorting equipment to produce cleaner products. This system is the only such system on the East Coast.
The 2021 Organic Recycler Award was also awarded to waste management. Waste management The current organic recycling program manages more than 3.5 million tons of materials each year in 44 organic recycling facilities in the United States, including 38 mulching and composting operations, four CORe food waste processing plants, and two new facilities that use the most advanced technology- The artistic technique of extracting organic matter from waste streams.
The 2021 Innovator of the Year Award goes to AMP Robotics of Louisville, Colorado. AMP Robotics’ artificial intelligence (AI) and robotics technologies help waste by modernizing recycling, improving material quality, ensuring worker safety, increasing productivity, reducing costs, transferring waste from landfills, reducing greenhouse gas emissions, and increasing overall rates The industry responds to the challenge of resource recovery.
The company recently launched AMP Clarity, an artificial intelligence-based material characterization software solution that can identify and classify recyclables that flow through different stages of the recycling process. This innovation is a breakthrough in providing measurable transparency to recyclables captured and missed in different recycling processes. AMP Clarity can also help increase recycling rates and create new value streams for recyclables, ultimately helping companies achieve their recycling content goals.
"I congratulate all the winners for their outstanding achievements and contributions. NWRA CEO Darrell Smith said that it is important that we recognize the excellent work our industry is doing to improve our community.
Waste Pro of Longwood, Florida announced on August 25 that Ralph Mills, who leads the company’s coastal region, has been promoted to senior vice president.
Mills joined Waste Pro in 2006 and has more than 35 years of experience in the industry. Throughout his career, Mills has been involved in all aspects of the industry, including collection, recycling, disposal, and landfill operation and management.
After serving as senior vice president, Mills will continue to serve as the company's regional vice president of coastal regions, which extends from Tallahassee, Florida to southern Alabama. He will now also be responsible for the negotiation of all waste disposal agreements within the company.
Mills graduated from Florida State University with a bachelor's degree in accounting and finance.
"Under Ralph's leadership, our coastal regions have achieved significant growth and profitability over the past few years," said Sean Jennings, President and CEO of Waste Pro. "The industry experience and knowledge he brings has proven time and time again that he is one of the best people in the industry. He and his team have clearly explained why Waste Pro is a "distinguishable difference."