Ohio authority grants company approval for $32 million in financing.
Rumpke Consolidated Companies Inc.
has been authorized to receive $32 million in financing by the Ohio Air Quality Development Authority (OAQDA) at its December meeting for a new recycling plant in Cincinnati. The new plant will replace Rumpke’s facility that was damaged in a fire in April 2012.
Under the financing package, OAQDA authorized the issuance and sale of up to $32 million in Exempt Facility Revenue Bonds. The authorization was OAQDA’s first federally tax-exempt financing for a recycling facility. The bonds will be issued in two series.
The 84,000 square-foot recycling plant will employ 110 workers and process residential and commercial materials through a dual in-feed processing system at 55 tons per hour of residential material and 20 tons per hour of commercial material. The processing and baling systems to be installed include six optical scanners for sorting fiber and containers, two eddy current separators for aluminum, an electromagnet for ferrous scrap and an extensive mixed-glass removal system.
The company expects to break ground on the project by the end of 2012 with completion scheduled for October 2013.
“This creative financing package will allow Rumpke Recycling to install a state-of-the-art facility that will operate with maximum efficiency and retain our regional capacity at optimal levels. In addition, the federal income tax exemption on OAQDA’s bonds truly helped make this project come together,” Rumpke CFO Phil Wehrman, says.
The OAQDA is a non-regulatory government agency created to help Ohio businesses comply with clean air regulations.