Guanwei Recycling Sees Sharp Increase in Sales for Fiscal Year

Guanwei Recycling Corp., a China-based manufacturer of recycled low density polyethylene (LDPE), announced revenues for the year ended December 31, 2009 climbed 86 percent to $47.26 million, compared to $25.43 million in 2008. The company also reported net income of $6.45 million, a 102 percent increase from the prior year’s income.

Chen Min, chairman and CEO of Guanwei Recycling Corp., states, "We are especially pleased with the strong advances in 2009 given the difficulties posed at the start of the year by the world economic crisis. As the year progressed, LDPE pricing recovered, while we were able to maintain the significant cost advantage we have developed as a direct importer of plastic waste from European suppliers with strict adherence to the highest environmental standards in the industry."

Chen continues, "Raw material supply and procurement is the key enabling element in our industry for accelerating growth, and as previously reported, the relationships we built with major European suppliers during the height of the economic crisis resulted in a substantial strengthening and diversification of our plastic scrap supply sources.

“During the year we also greatly expanded our customer base, from 210 customers at the start of the year, to approximately 300 domestic customers in ten different industries going into 2010, setting a strong foundation for continuing growth."

The company saw its volume of recycled LDPE increase by 67.34 percent to 39,076 tons in 2009. The company notes that the gain reflects the continued strong demand for recycled plastic in China, where plastic consumption greatly exceeds the amount produced. This has continued to boost the use of recycled plastic, which is significantly less expensive than "virgin" plastic, and has made China the number one producer in the world of recycled plastic.

The company also notes that the average selling price of recycled LDPE for the year was $998 per ton, a decline of 3.11 percent from $1,030 per ton in 2008, reflecting the lower prices at the start of the year during the economic crisis. With stabilized crude oil prices and anticipated increasing virgin plastic prices, the company expects to achieve better selling prices in 2010.

For the year, the company also saw a decrease in revenues from its sorted non-LDPE waste as it processed higher quality raw material with enhanced labor sorting skill resulting in a higher LDPE yield. The improved efficiency of the company's production process generated a recycled LDPE product yield of 76.42 percent, compared with 76.19 percent the prior year.

In discussing on the outlook for 2010, Chen says, "We have begun the new year in very strong shape with a diverse and secure supply of plastic waste that we obtain directly in Europe without the cost of middlemen and that we can transform into higher priced, high grade recycled LDPE at a lower cost than our competitors. We also have developed a broadened customer base, while emphasizing sales to the building and infrastructure industries, where there is strong government support for the industries and plastic products produced for them such as pipes and sheathing. In the face of continued very strong product demand, we are maintaining our focus on the bottom line through enhancements of our production process. As a consequence, we fully anticipate 2010 will be another year of new records in sales and earnings."

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SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

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SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).