GreenMan Technologies, Inc. has completed several initiatives intended to improve the performance of its Southeastern tire recycling operations.
Robert Davis, GreenMan's president and CEO, said, "There is no higher priority within our corporation than stabilizing and turning around our Southeastern operations. We have therefore refocused our strategy in the Southeast to one of "more from less". During the month of July, we completed an evaluation of our inbound collection infrastructure and determined that we would no longer provide certain levels of service and products at existing rates. During July, we implemented price increases where warranted and terminated service in situations where price increases were not an alternative. We estimate that maintaining this unprofitable business had contributed $40,000 to $75,000 per month to our historical operating losses. While these initiatives will result initially lower inbound tire volumes, we believe they will improve our performance. In addition, these changes should generate further cost reductions in the form of lower labor, parts and maintenance in the Southeast. Our efforts to reduce the operating losses in the Southeast are an ongoing process and we are committed to evaluate all viable alternatives to achieve this objective".
Davis added, "In addition, over the past year, we continued to build a customer base outside of our Jackson, Georgia market in anticipation of delivering whole tires to several new cement kiln locations expected to begin accepting whole tires on a regular basis this month. These tires, while making marginal contributions to our performance when processed at our Jackson location, will have a greater contribution when processed closer to their origin at the respective cement kilns."