Recycling Works

The newsletter of DPPEA's Recycling Business Assistance Center
Vol. 3, No. 2, May 1997



Index this issue . . .



Scrap Tire Disposal Act Slated for Change

Approximately 9.2 million tires (or 92,000 tons) were disposed in North Carolina in FY 95-96. Because this amount is 126 percent of the estimated tires generated in the state, it is likely that North Carolina's counties are disposing tires generated out of state. Also in FY 95-96, an additional 1.4 million tires were cleaned up from nuisance tire sites.

Public Health Hazards

The Division of Waste Management of the Department of Environment Health and Natural Resources (DENR) has tracked tire disposal trends since 1989 to evaluate the effects of illegal dumping of tires. Illegal tire disposal in North Carolina causes potential public health hazards; for example:

Scrap Tire Recycling and Reuse

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As shown in Figure 1, approximately 45 percent of scrap tires disposed in North Carolina was diverted for recycling or reuse in FY 95-96. Table 1 lists five firms that process and recycle scrap tires in North Carolina. Growth rates for recycling scrap tires in North Carolina have been slow, in part because of weak demand for recycled material such as crumb rubber and tire derived fuel.

North Carolina Scrap Tire Disposal Act

In 1989, the disposal of whole tires was banned as part of the Solid Waste Management Act (Senate Bill 111). This Act also required that all 100 North Carolina counties provide at least one scrap tire collection site. Because some counties passed the cost of managing scrap tires to the tire disposer through tipping fees, an increase in illegal tire dumping occurred. In 1991, legislation was passed that established a 1-percent tax on tires to provide funds to assist counties with tire disposal. In order to provide for free disposal of tires and curtail illegal dumping, the scrap tire disposal tax was increased to 2 percent in October 1993; landfill disposal fees were prohibited as of January 1, 1994.

To pay for proper disposal, 68 percent of the tire tax revenue currently is distributed directly to the counties on the basis of population. Twenty-seven percent of the tax is distributed to the Scrap Tire Disposal Account (STDA), which is used to cover cost over-runs incurred by the counties and to clean up nuisance tire sites. The remaining 5 percent of the STDA is held in the Solid Waste Trust Fund and is used for general waste reduction and recycling grants.

Nuisance Sites Cleanup

As a direct result of the Scrap Tire Disposal Act, more than 2.7 million tires at 168 nuisance sites have been cleaned up. The 2-percent tire tax is scheduled to sunset on June 30, 1997. estimates that deficits created when the tax expires would cause counties to charge again for tire disposal and create economic incentive for illegal dumping.

Table 1. Tires Processed by North Carolina Businesses, FY 95-96

Facility

Counties Served

Tires Received

U.S. Tire Recycling LP

37

3,806,600

Central Carolina Tire Recycling

41

3,826,800

TIRES, Inc.

39

1,779,767

Entirotire Recycling

2

283,200

Tire Disposal Service

8

905,900

Proposed Legislation

The main provisions of Senate Bill 153, which has been filed to amend the scrap tire disposal tax, include the following:

End Uses for Tires

End uses include tire derived fuel and crumb rubber products such as new tires, hard rubber wheels, athletic shoes, rubber mats and pads, soaker and sprinkler water hoses, automotive parts, and athletic and turf grass products. The RBAC is co-sponsoring a workshop on best practices for waste tire processing and manufacturing on June 17 in Charlotte; see "Scrap Tires and Rubber Workshop" below.

For more information and an update on legislative activities, contact Diane Minor of RBAC at (919) 715-6516.



Southeastern Recycling Investment Forum Features Promising Recycling Businesses

Eleven existing and start-up recycling ventures from across the Southeast shared their company history, current status, and business plans with an audience of more than one hundred investors, economic developers and fellow entrepreneurs at the second annual Southeastern Recycling Investment Forum in Charleston, South Carolina, on February 10-11, 1997.

The forum was hosted and organized by the South Carolina Recycling Market Development Council. Co-organizers included KirkWorks, the Southern States Waste Management Coalition, and the North Carolina Recycling Business Assistance Center. The primary sponsor was the U.S. Environmental Protection Agency, and seven additional sponsors provided support.

Identify Partnership Opportunities

The forum's primary purpose was to assist entrepreneurs and investors in identifying partnership opportunities. Follow-up evaluations indicated that registrants made an average of five contacts that may facilitate future investment transactions.

Robert N. Schall, President of Self-Help Ventures Fund, commented that he was impressed with the enthusiasm and professionalism of all the presenting companies and that "the investment community would do well to consider funding recycling projects like these." Presenting firms were seeking between $500,000 and $5 million in additional equity or debt financing for budgetary items such as equipment, buildings, and working capital.

Training Workshop Successful

Prior to the forum, a training workshop was held to allow preliminary critique of each company's presentation. Presenters at the forum indicated that the training workshop gave them an opportunity to sharpen their presentation skills. "The training session in Charlotte was a learning experience that would benefit any recycling company looking for either debt or equity financing. I believe it gave each of us the tools to refine our presentations," said Morris Hill, Operations Director of Recycled Tire Products. The workshop was hosted by the North Carolina Small Business & Technology Development Center.

Forum participants also heard from Eric Oganesoff, CEO of GreenStone Industries, a manufacturer of cellulose insulation and specialty fibers primarily from recovered paper; Hugh Holman, an investment banker with Environmental Capital Associates, Inc.; and Neil Seldman, President of the Institute for Local Self-Reliance in Washington, D.C.

Two of the featured companies at the Southeastern Recycling Investment Forum were Resource Recycling, Inc., a major operating plastics recycler with corporate offices in Reidsville, and the Key Block Corporation of Charlotte, a new company planning to manufacture pre-engineered building components utilizing recovered materials. Overviews of these companies follow. The following companies were featured at the forum:



North Carolina Companies Particiate in Southeastern Recycling Investment Forum

Resource Recycling, Inc., Reidsville, was founded in November 1990 to recycle post-industrial LDPE plastic scrap generated by the textile industry and plastic film extruders in the South. In January 1995, the company developed a specialty market by recycling engineering-grade plastic scrap generated by big injection molders. These manufacturers produce plastic parts for large national accounts such as IBM and the airline industry. This division of Resource Recycling's operations is located in Hamlet.

In September 1995 Resource Recycling sold its IEM nursery container operations in Reidsville to a major competitor in order to focus on its core recycling business. In conjunction with the sale, Resource Recycling leased its blow molding building and entered into a five-year contract to supply HDPE recycled resins to this customer.

According to C.H. Lee, President and founder of Resource Recycling, "A plastics recycler must be either horizontally integrated to spread risks of commodity resin price fluctuation or vertically integrated to produce finished products in order to enhance the margin. It is our corporate goal to achieve both objectives."

Comments on Resource Recycling's presentation and business future from members of the investment community at the forum were highly favorable.

According to President William Juhas, Key Block Corporation, Charlotte, was established, "for the purpose of manufacturing and distributing its pre-engineered building components used in the construction of exterior walls, roofs, and floors of residential and commercial buildings."

The building components are a cast cementation from cement and wood fibers recovered from discarded construction lumber and wood shipping pallets. In addition, the building components are pre-insulated with polystyrene recycled from post-consumer products. In all, up to 75 percent of the materials used in the manufacturing process come from recycled materials.

The company plans to include the manufacture of building products for domestic and international use as well as licensing of its manufacturing technology and selling of manufacturing equipment.

For more information about Resource Recycling, Inc., contact C.H. Lee at (910) 342-4749. For more information about the Key Block Corporation, contact Bill Juhas at (704) 643-0133.



Short Takes

Recycling Industry Update

Wellmark, Inc. (see Recycling Works, January 1996), has made significant progress in its recycling efforts over the last year. Located in Asheboro, North Carolina, Wellmark is the recycling arm of Technimark, a contract injection molding and assembly operation that services both the cosmetic and industrial market segments. Technimark is also a leading producer of textile dye tubes.

The 35 to 40 million dye tubes Technimark produces annually use about 7 million pounds of polypropylene. Wellmark receives the used dye tubes from Technimark customers and recycles them.

When the project was first initiated, Technimark used approximately 10 percent of the recycled polypropylene. Currently, more than 30 percent is used internally, and 70 percent is sold to customers.

In the early stages of the project, Wellmark was recycling approximately 3 million pounds of polypropylene annually. According to Brad Wellington, Technimark Project Manager, that amount should have increased to 5 million pounds annually by March 1997.



EJE Recycling, Inc., a construction and demolition (C&D) debris recycling and disposal center in Greenville, accepts co-mingled C&D waste at $35 per ton. Lower tipping fees are charged by the axle, however, for separated wastes. These prices reflect costs per ton of about $2 for inert debris; $3.50 for clearing debris; and $7.80 for concrete, asphalt, and rock. There is no charge for soil.

Customers of EJE Recycling range from private independents to larger waste companies including Waste Industries, BFI, Seaboard Container, and Smithson. The company has a contract with the North Carolina Department of Transportation to provide 1,000 tons of rip rap for erosion control. The other product that EJE currently provides is ABC stone for driveways and roadbanks. The company plans to add cardboard, plastics, and wood for fuel or paper pulp to its available products.



1997 Directory of Markets for Recyclable Materials

The 1997 edition of the Directory of Markets for Recyclable Materials has been completed by the Division of Pollution Prevention and Environmental Assistance (DPPEA). With this update, the number of companies listed in the Directory that accepts recyclable materials has increased to over 500. A searchable Internet version under development will be available later this year.

The format for the 1997 edition is the same as for previous issues. The entry for each company contains address, contacts, materials accepted, and specifications. The Directory also includes a materials listing by major category, a list of trade associations, and other material-specific contacts.

For a copy of the new directory or to include your company in the Directory database and the next edition, please contact John Nelms of DPPEA at (800) 763-0136 or (919) 715-6514.



Scrap Tires and Rubber Workshop June 17

Prime Opportunity To Enter a Developing Recycling Market

The RBAC is co-sponsoring a Best Practices for Scrap Tires and Rubber workshop on June 17 in Charlotte, North Carolina. The workshop was developed by the Clean Washington Center 's Recycling Technology Assistance Partnership (ReTAP) of Seattle, Washington. ReTAP is an affiliate of the Manufacturing Extension Partnership, a program of the U.S. Commerce Department's National Institute of Standards and Technology. ReTAP is also supported by the American Plastics Council and the U.S. Environmental Protection Agency. Featured national and regional speakers will discuss the following best practices:

Processing,
Size reduction/granulation,
Materials preparation,
Recycled product manufacturing,
Compounding, and
New and developing high-value end uses.

Those that would benefit from this workshop include collectors, processors, product manufacturers, equipment manufacturers, investors, entrepreneurs, technical extension agents, public agencies, trade associations, researchers, consultants, and recycling coordinators.

Telephone Diane Minor at (919) 715-6516 for more information about this workshop.



Textile Recycling: A New Solution for Solid Waste Minimization

Presented at the North Carolina Recycling Association's 7th Annual Conference and Trade Show, March 17-19, 1997, Grove Park Inn Resort, Asheville, NC

Introduction

In one year, South Carolina generated 4,910,860 tons or over 9 billion pounds of Municipal Solid Waste (MSW), according to the Franklin Associates study, Characteristics of Municipal Solid Waste in the U.S. From this study, we have learned that textiles make up approximately 5.3 percent of the MSW in the United States, which translates into over 500 million pounds of textile waste generated annually in a state the size of South Carolina. Can you imagine what the tonnage would be for North Carolina?

Carolina Textile Recycling/Grossman Industries has been recycling textiles for over 70 years. Our new plant is located in Walterboro, South Carolina, and is the only facility in the Carolina's that recycles used clothing. Through a process designed to fit in with county recycling programs, Carolina Textile Recycling (CTR) has launched a new endeavor to help clean up our landfills.

Since CTR has moved to South Carolina, we have been instrumental in reducing the amount of textiles that would have been routed to the landfills in South Carolina. We have collected and processed over 12 million pounds of used clothing and textiles, most of which have come from charitable organizations and thrift stores. Since April 1996, we have been working with over 20 counties, private businesses, and retailers to divert an additional 370,000 pounds of textiles out of our landfills. The collected materials have generated approximately $25,000 that was paid directly to county recycling programs and businesses at no additional cost to them.

The First Step

As the first step, we have found it necessary to heighten awareness of textiles as a recyclable item. In an effort to get this message to the general public, we have been working with existing county recycling programs and with environmentally aware businesses such as Wal-Mart, petroleum producers, gas stations, and textile production plants. Through collection drives at locals schools and class tours of our recycling facility, CTR has targeted the future generation of recyclers, our children.

The Next Step

Once the public is made aware of textiles as a recyclable item, the next step is to find a solution to the problem - collection. CTR has developed textile collection bins that are available to be placed at both manned and unmanned county recycling sites.

Currently CTR is capable of processing 160,000 pounds of textiles per week, or over 8 million pounds per year. We currently employ approximately 60 people in our 50,000-square-foot facility. The only limit to the growth of CTR's textile recycling capabilities is the availability of its raw materials - recyclable textiles.

CTR recycles approximately 95 percent of its collected raw materials. Textiles are graded according to garment type, quality, and fiber content. Many of the textiles will be shredded and used for rug backing, auto insulation, blankets, or industrial wiping cloths. The wool and polyester textiles will be recycled into new garments. Finally, the best quality, more wearable items will be sorted and sold by the pound to needy people in underdeveloped countries around the world.

A textile collection and recycling program as described here is beneficial to Solid Waste Management Officials, the state of North Carolina, the general public, and local and state governments in the following ways: it keeps recyclable items out of our landfills, it generates revenue for county recycling programs, and it provides a means of compliance for the "Solid Waste Management Act of 1989."

CTR's alliance with county recycling programs has been a great success to date. As the numbers indicate, the response to collecting textiles that would have been routed to landfills has been exceptional. Although the program has been mutually beneficial, it is still in its infancy. CTR is pursuing alliances with counties throughout the Southeast in an attempt to increase the volume of recyclable textiles collected.

For additional information, contact Laura L.S. Kerrison, Carolina Textile Recycling, at (803) 538-8644.



BellSouth Develops Telecology Program

The following article is excerpted from the Conference Proceedings provided by Donna Parrish of BellSouth Environmental Management, Nashville, Tennessee, at the 7th Annual North Carolina Recycling Association Conference & Trade Show held March 17-19 in Asheville.

In the late 1980s when landfills began to close and tipping fees increased drastically—up to three times the original cost— BellSouth realized the economical and sociological values of office recycling. BellSouth cares about protecting our environment and is a nationally recognized leader in sustained waste prevention. BellSouth developed its own Telecologysm program, which stands for "Telecommunications Working for the Ecology," and concentrates on environmental compliance and conservation within the communities we serve.

Alliances and Partnerships

During the past year, BellSouth developed alliances with three general services contractors. These contractors now control the company's facility cleaning, lawn service, waste hauling, recycling, and proprietary paper contracts throughout the region. It quickly became very clear that it would be advantageous for all parties to research local government reduction and recycling opportunities. After contacting the facility managers and local governments, we were amazed to discover the number of opportunities available in the areas we serve. In one North Carolina city, a team comprising a local government representative, BellSouth's facility manager, the general services contractor, and the major building occupants was formed to embark on this new adventure.

Waste Assessment

The first step was to conduct the waste audit to determine the materials that were already in the waste stream. After the waste stream materials were identified, the team developed its plan of action. BellSouth's office building waste generally fell into the basic recyclable materials categories; however, the atypical waste stream at the company's Network facility offered many opportunities for reduction, recycling, and cost avoidance.

Next Steps

BellSouth continues to explore new and innovative ways to convert its waste stream into recycled articles by developing new commodities. BellSouth will continue to meet these environmental challenges while meeting its basic corporate objective of providing the best service possible to its customers in the most environmentally sound and cost-effective manner.

For more information, contact Donna Parish, BellSouth Environmental Management. To discuss a waste audit at your facility, contact DPPEA at (919) 715-6500.



-- News Item --

Duke Power Drastically Reduces Disposal

At a session on Business & Commercial Recycling at the 7th Annual North Carolina Recycling Association Conference & Trade Show, Jim Duffy reported that Duke Power reduced the amount of solid waste requiring disposal by 88 percent. He also reported that a full-cost analysis of collection and disposal expenses, compared to costs associated with Duke Power's recycling and waste reduction initiatives, showed a net savings of $1.8 million.



North Carolina Market Prices for Recyclables

Prices current as of April 10, 1997

Item

Western Region

Central Region

Eastern Region

Metals

Aluminum Cans, lb loose

$0.50

$0.53

$0.57 lb/baled

Steel Cans, gross ton baled

$50

$51

$55

Plastics

PETE, lb baled

$0.04 - $0.05

$0.05

$0.04

HDPE, lb baled

$0.19 - $20

$0.18

$0.18

Paper

Newsprint, ton baled

$25

$20

$30

Corrugated, ton baled

$65 - $75

$30

$65 - $75

Office, ton baled

$140 - $150

$80

$135

Magazines, ton baled

($5)*

$0

**

Mixed, ton baled

10

$20

$5

Glass

Clear, ton crushed

$44

$42

$25

Brown, ton crushed

$22

$33

$21

Green, ton crushed

$15

$8

$2

*Negative $5. **Facility contacted is currently not selling magazines.
Note: The prices listed above are compiled by the RBAC and are for reference only. These prices are not firm quotes. RBAC obtained pricing information from buyers within each category and developed a pricing range.


Call (919) 715-6500 or 1-800-763-0136 for free technical assistance and information about preventing, reducing, and recycling waste.