The Australia-based tire recycling company Reclaim Industries has been acquired by Carbon Polymers LLC, also based in Australia, for around $925,000. In making the acquisition, Carbon Polymers says that it hopes to extract $3.5 million in costs out of the businesses each year.
According to one report, Reclaim had revenues of $16 million in 2010, and forward order book of $7 million, but found itself in financial trouble after the apparent failure of a $2.5 million capital injection by a Chinese investor group.
The company filed for the Australian version of bankruptcy protection in February 2011. Reclaim owns facilities in South Australia, Western Australia and New South Wales Australia.
Carbon Polymers, based in New South Wales, Australia, is focused on carbon and plastic recovery and reuse.
"The operations in Western Australia and South Australia will also be launching pads for increasing business with the vastly untapped mining sector," Carbon Polymers says in a press release. "Carbon Polymers has been in negotiations to acquire Reclaim for some time and we have identified key areas of operations in Reclaim that can be improved. We will look to fully integrate the operations of Reclaim over the next six months and envisage savings of $3-5 million per year."