The two-stage capital project involved adding new shredding capacity in response to increased market demand for smaller tire-derived fuel products and installing GreenMan’s third waste processing equipment line, which is estimated to reduce annual disposal expenses by more than $160,000 yearly and to provide new sources of revenue and much needed material feedstock for GreenMan’s Iowa crumb rubber operation.
“During the past 12 months, GreenMan has invested over $2.75 million to upgrade the shredding and waste wire processing capabilities of our Minnesota and Iowa facilities,” Mark Maust, GreenMan’s Midwest regional vice president, says. “This investment provides the Midwest Region with an annual crumb rubber capacity of about 40 million pounds per year on a go forward basis, which is double the production volume we anticipate during the current fiscal year.”
President and CEO Bob Davis says, “We can now market our Minnesota alternative fuel products to a wider base of customers at higher margins. The Minnesota and Iowa upgrades were capital intensive but strategically critical to our re-investment and re-entrenchment initiatives, which are intended to enhance GreenMan’s long term corporate performance.”
GreenMan is also implementing operational and mechanical changes to its California crumb rubber capacity, which the company says will more than double its crumb rubber processing capabilities. “Together, these initiatives will provide GreenMan with corporate-wide crumb rubber capacity of over 50 million pounds per year,” Davis says.