Midwest Fiber Recycling, Normal, Illinois, announced plans to invest $3 million to equipment additions and upgrades at its material recovery facility (MRF). According to a company news release, the upgrade will enable the facility to more efficiently sort materials from contamination and increase processing capabilities.

All new equipment in this upgrade was designed by Bulk Handling Systems, Eugene, Oregon, which is a designer of single-stream recycling systems throughout the U.S.

Midwest Fiber is a family-owned single-stream processor in central Illinois. The company reports that the investment translates into a 33 percent increase in the plant’s recycling capabilities, giving the company and the communities and clients it serves the ability to divert increasing amounts of material away from landfills. Midwest Fiber receives single-stream materials from throughout central Illinois, which is more than 700 trucks delivering material per month.  

This marks Midwest Fiber’s third expansion since the MRF opened at 422 S. White Oak Rd. in 2011. The company made its last expansion in 2013. Overall, the company has invested in a total of more than $5 million in plant expansions in the last seven years. The expansions have enabled Midwest Fiber to increase the amount of recyclables diverted from landfills for its recycling partners.  

“Even though our facility is still fairly new, we strive to continue to keep up with the changing markets and material streams coming into our facility,” says Todd Shumaker, vice president of sales and marketing for Midwest Fiber. “Our goal is to continue to provide the best service in the Midwest where our recycling partners can recycle as many materials as possible and have confidence that as much material is diverted from landfills as possible. With the addition of three new pieces of equipment and upgrades to others, we can continue to achieve these goals. 

“The material stream is constantly changing. With more online purchases, we are seeing more cardboard than ever before and we needed to adjust for that. Also, with more types of plastic packaging for the products we buy, there is more confusion as to what of that can be recycled. We end up with a lot of things that are not recyclable, and we needed to add more equipment to help pull those out of the stream.”

Schnitzer Steel Industries Inc., Portland, Oregon, has reported earnings per share from continuing operations of 46 cents and adjusted earnings per share of 48 cents for its second quarter of fiscal 2019, which ended Feb. 28, 2019. This compares with reported and adjusted earnings per share from continuing operations of 57 cents and 58 cents, respectively, for the first quarter of fiscal 2019 and reported and adjusted earnings per share from continuing operations in the second quarter of fiscal 2018 of $1.42, which included discrete tax benefits of 52 cents per share.

The company says its Auto and Metals Recycling (AMR) segment achieved operating income of $22 million, or $25 per ferrous ton, compared with operating income in the first quarter of fiscal 2019 of $23 million, or $25 per ferrous ton. On a sequential basis, AMR’s performance benefited from additional productivity initiatives and a decrease in selling, general and administrative (SG&A) expense, which Schnitzer says substantially offset seasonally lower volumes and retail sales, which were adversely affected by severe winter weather and lower average ferrous net selling prices of 6 percent.

Schnitzer’s Cascade Steel and Scrap (CSS) segment achieved operating income of $6 million compared with $5 million in the second quarter of fiscal 2018. The improvement in CSS’s year-over-year performance was driven primarily by a 19 percent increase in finished steel average net selling prices and benefits from productivity initiatives. This increase was partially offset by the increase in the cost of steel-making raw materials and a 25 percent decrease in finished steel sales volumes that were affected by construction delays in its West Coast markets resulting from severe winter weather in California and the Pacific Northwest, according to the company.

“Our team delivered a strong second-quarter performance in a challenging environment that reflected declining prices for scrap during the winter months and severe weather in our West Coast and Pacific Northwest markets,” says Tamara Lundgren, Schnitzer president and chief executive officer. “AMR’s results reflected benefits from the swift execution of productivity initiatives, which are tracking ahead of schedule, and the team’s ability to optimize purchase volumes and to diversify sales. CSS delivered stronger year-over-year operating and financial results despite weather-related construction delays that impacted sales volumes. We generated strong operating cash flow and reduced debt while continuing to return capital to our shareholders through both share repurchases and our quarterly dividend.”

She adds, “Looking forward, we remain focused on the execution of our productivity initiatives and our capital investment strategy to support our objectives of lowering processing costs, increasing recovery rates, and further developing products to meet our customers’ needs.”

Schnitzer reports that its ferrous sales volumes in the second quarter decreased 4 percent compared with the prior year’s second quarter and 7 percent sequentially, primarily because of the adverse impact on supply flows from severe weather conditions and the lower price environment. However, nonferrous sales volumes were 9 percent higher compared with the prior year’s second quarter, which the company attributes primarily to the timing of shipments. Nonferrous sales volumes were 8 percent lower compared with the first quarter of fiscal 2019 largely because of the lower supply flows.

Export customers accounted for 60 percent of Schnitzer’s total ferrous sales volumes. The company says it shipped its products, including ferrous and nonferrous, to 22 countries in the second quarter of fiscal 2019. Bangladesh, South Korea and Turkey were its top export destinations for ferrous shipments.

Schnitzer’s average ferrous net selling prices decreased $27 per ton, or 9 percent, compared with the prior year’s second quarter and decreased $19 per ton, or 6 percent, sequentially. Average nonferrous net selling prices decreased 19 percent compared with the second quarter of fiscal 2018 and decreased 2 percent sequentially.

Schnitzer reports that its operating income was $22 million in the second quarter, which was $1 million, or 6 percent, less than in the first quarter of fiscal 2019 and $23 million, or 52 percent, less compared with the second quarter of fiscal 2018. Operating income per ferrous ton of $25 was consistent sequentially and represented a decrease of $25 per ton, or 50 percent, from the prior year’s second quarter, the company says.

Sequentially, the company says AMR’s performance reflected additional benefits from productivity initiatives and reduced SG&A expense, including lower incentive compensation accruals, which substantially offset seasonally lower sales volumes and retail sales. Year-over-year margin compression resulted primarily from the decline in net selling prices for nonferrous and ferrous products, which outpaced the reduction in purchase costs for raw materials, partially offset by the benefits from productivity initiatives and lower SG&A expense. Second quarter operating results include an adverse impact from average inventory accounting of $1 million compared with a benefit of $4 million in the second quarter of fiscal 2018 and an immaterial impact in the first quarter of fiscal 2019.

In its CSS business, finished steel sales volumes in the second quarter were 25 percent lower year over year and down 21 percent sequentially, primarily because of weather-related construction delays in its West Coast. Recycling revenues declined significantly year-over-year and sequentially as a result of lower ferrous export sales and selling prices.

Average net selling prices for finished steel products increased 19 percent from the prior year’s second quarter, Schnitzer says, reflecting reduced pressure from steel imports and higher costs of steelmaking raw materials and other consumables. Average net selling prices decreased 1 percent sequentially primarily because of the regional sales mix.

CSS operating income for the second quarter of fiscal 2019 was $6 million, an improvement from the prior year’s second quarter. The improved year-over-year performance reflected an expansion in finished steel margins resulting from higher average net selling prices and benefits from productivity initiatives, partially offset by the increase in the cost of steelmaking raw materials, the impact of the lower finished steel sales volumes and higher costs associated with planned maintenance. Sequentially, operating income declined by $6 million, driven primarily by the impact of the lower sales volumes and higher production costs associated with planned maintenance, Schnitzer says.

In the second quarter of fiscal 2019, consolidated financial performance included corporate expense of $8 million, a decrease of $9 million from the prior year’s second quarter and a decrease of $4 million sequentially, driven primarily by lower incentive compensation accruals and, compared with the prior year, lower legal and professional services expenses.

Schnitzer says it made progress implementing and executing productivity initiatives targeting $35 million in benefits announced earlier in fiscal 2019. Consolidated results in the second quarter of fiscal 2019 reflected approximately $9 million in benefits from these measures, of which approximately $7 million were achieved by AMR and the remainder by CSS and corporate. The company says it expects to achieve at least 75 percent of the total targeted benefits in fiscal 2019, with the full amount expected to be achieved in fiscal 2020.

The second quarter of fiscal 2019 reflected operating cash flow of $35 million. Total debt at the end of the second quarter of fiscal 2019 was $163 million, and debt, net of cash, was $150 million, a decrease compared with $169 million and $157 million, respectively, at the end of the first quarter of fiscal 2019.

Pursuant to its ongoing authorized share repurchase program, during the second quarter, Schnitzer says it repurchased approximately 263,000 shares, or almost 1 percent, of its Class A common stock in open market transactions. It also returned capital to shareholders through its 100th consecutive quarterly dividend.

PepsiCo has announced the launch of “Recycling with Purpose,” which it calls a circular economy model designed to promote recycling in Latin America and the Caribbean region.

“PepsiCo wants to be part of the solution and we will continue to work to build a world where the plastics we use never become waste,” says Monica Bauer, vice president of corporate affairs at PepsiCo Latin America.

Regarding the new program, which involves an alliance with recycling incentives technology provider ecoins, Bauer adds, “We acknowledge that PepsiCo can’t do this alone.”

PepsiCo describes ecoins as an initiative founded in Costa Rica designed to increase the collection of PET bottles and other materials. The program allows consumers to exchange their plastic materials for ecoins, a virtual currency they can use to earn discounts on a variety of products and services.

Bauer tells the Recycling Today Media Group the program should do more than boost the collection of PET beverage bottles only. “Ecoins works across all recyclable materials that have a market value in that country,” she comments. “In Costa Rica, for example, they are collecting PET, cardboard, aluminum, Tetra Pak, glass, tires and electronics, among others. Thus, recycling is not limited to PepsiCo brand’s packaging materials.”

To join the ecoins program and begin earning discounts, participants first create a virtual profile where they can use their email address to store ecoins like a virtual account. Participants can then take clean, dry, and separated materials to collection centers where they will receive ecoins in exchange for the items.

“Ecoins was created in Costa Rica and launched in 2018 in response to an increasing demand from conscious consumers to be active in solving environmental problems in countries that lack an adequate system of separation, collection and recovery of waste,” says Karla Chaves, director of the program. “It integrates concepts such as discounts, loyalty, digital marketing, gamification—which are so familiar in our system of consumption—but from a new vision: that of the circular economy. The experience that ecoins offers is that of facilitating the consumer’s learning of the process of the separation of valuable materials while increasing the volume and profitability of the collection centers.”

Through the Recycling with Purpose partnership, PepsiCo will support the expansion of the ecoins platform to 10 countries in Latin America during the next two years. That roster of nations includes Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Panama, Peru, Guatemala and Jamaica.

PepsiCo estimates in 2019 ecoins will have 300,000 accounts and provide recycling awareness to nearly 1 million people thanks to social media campaigns covering seven countries.

“At PepsiCo we understand that recycling rates across the food and beverage industry are insufficient,” says Laxman Narasimhan, PepsiCo Global chief commercial officer and CEO of PepsiCo Latin America. “Through this partnership with ecoins, we’re working to make sustainable plastic a reality in the region by creating a circular economy in which plastics become currency, not waste.”

Bauer says she also sees the ecoins alliance as a critical step forward. “As we lack recycling infrastructure in many LatAm countries, we need to involve consumers to make recycling a sustainable model. We understand that grassroots recyclers are the basis of any successful recycling system, and they need to continue being part of any system. We will continue to work on joint efforts with the recycling industry to increase access to recycling materials [and] we will develop agreements with recyclers to buy materials a fair market price [to] use the PET collected to produce recycled resin (rPET). The recycled resin produced by PET collected in this program can be used in new Pepsi bottles.”

PepsiCo Latin America is a division of the global firm that includes all of its beverage, food and snack businesses in 34 Latin Americana and Caribbean nations. The division generated $7.4 billion dollars in net revenue in 2018, according to PepsiCo.

Hitachi Construction Machinery Loaders America Inc. (HCMA), Newnan, Georgia, announced that President Masaaki Hirose has is retiring from his current position, appointing HCMA Vice President of Operations Al Quinn to succeed him in day-to-day management of the company.

Hirose has accepted a new position within Hitachi, now serving as chairman and director of HCMA and VP of the Hitachi Americas Operations Group. Quinn becomes managing director, reporting to Hirose.

Thanking HCMA employees for their support during his tenure, Hirose noted his close collaboration with Quinn in establishing HCMA as a new top-tier player in the wheel loader industry.

“Al joined us in 2017 and took the lead in several of our key customer-facing roles,” Hirose says. “His profound expertise and experience in our industry have been crucial to our success in sales, marketing, parts and service and purchasing. Now, as managing director, he will continue to provide leadership in those areas, with additional responsibilities for corporate and production operations.”

As Quinn accepted his appointment, he recognized key milestones that HCMA has achieved since it began operations in January 2018.

“We have certainly gone through tremendous change in the past two years, but I want to say thank you to Masaaki for his dedication and commitments to improving our company,” Quinn says. “It is very rewarding to see the improvements that we are making in market share, profitability and in better serving our customers.”

Under Hirose’s leadership, HCMA has seen 175-percent growth in revenue and has nearly doubled its market share, the company says. Last June, the company celebrated the grand opening of its new U.S. corporate headquarters and training facility, representing a $4 million investment in support for customers and dealers in the Americas.

Speaking to more than 30 Hitachi wheel loader dealers at HCMA’s first national conference, Quinn said, “It’s great for all wheel loader customers to have access to an alternative global brand. We expect to exceed customer expectations.

“Expectations are high, and that also drives change. While we have accomplished much, we still have much more to do,” Quinn continued. “We will stay on course to implement the strategies and plans that have been working for us through the past two years. No radical new plans are expected. I am very optimistic that we are creating a very bright future for HCMA.”