Plastics Recycling Venture Formed

Spartech Corp.'s Spartech Polycom Inc. subsidiary and Washington, Pa.-based Washington Penn Plastics Corp. will combine assets and some personnel to form a plastics recycling joint venture.

Financial terms were not disclosed.

The venture, which will operate as Plastics Recycling Center LLC in Summerville, S.C., will supply recycled materials to both Spartech Polycom and Washington Penn. Both companies already have plastics recycling operations in Charleston, S.C., and will combine those operations to form the venture, slated to begin next month.

St. Louis-based Spartech Corp. makes thermoplastic materials and molded plastics.

Spartech`s Chairman, president and CEO, Bradley B. Buechler, stated, " This new venture combines the assets and some personnel from each of the existing sites to operate independently and supply recycled PP materials to both Spartech Polycom and Washington Penn.”

Roy Crosby, a current Spartech Polycom plant manager, has been appointed as the general manager of the joint venture.

George Abd, executive vice president, added, "This venture will allow both companies to maintain their commitment to the environment and customers` goals of post consumer recycled product content while reducing the high costs that both must now absorb by operating separately. The feedstock sourcing synergies and operational improvements, resulting from this combination, will help limit future cost exposure in this segment while allowing us to continue to meet customer requirements and maintain tight quality controls on recycled feedstock components.