KBF Pollution Management signed a seven-year recycling services pact valued in excess of $21 million with a domestic distributor of industrial by-products.
Under the terms of the agreement KBF will provide recycling services, worth around $3 million a year, at KBF's proprietary Recycling and Commodity Manufacturing Center in Paterson, N.J. The agreement provides for the distribution of various industrial by-products to KBF for recycling with KBF's patented recycling technologies and the sale of any products recovered by KBF.
Kevin Kreisler, KBF's president, stated that, "the anticipated doubling of our current annual volume is clearly a positive material development and underscores an impressive year in which we have made several significant strides in our continuing development. The recycling we will perform under this agreement falls squarely within our core competencies and, due to the high process efficiency of our technologies, we expect the gross profit on the anticipated additional revenue under the agreement to be somewhat greater than 30%."
The company added that due to contractual obligations the name of the company KBF inked the contract with can not be named.
KBF will extract various metals through a number of different processes. The collected material will be sold to smelters.
Full-scale production is expected to begin the second quarter of next year. Revenues with the contract will be partially dependent upon fluctuations in commodity prices
The agreement also includes provisions for additional increases in production with further development of KBF's recycling infrastructure.