ARCA Recycling Successfully Adapting to Changing Recycling Landscape
March 08 2016 - 12:05PM
Business Wire
ARCA Recycling, Inc., a wholly owned subsidiary of Appliance
Recycling Centers of America, Inc. (NASDAQ: ARCI), is successfully
adapting to trends impacting the recycling of appliances and
consumer electronics by negotiating contracts with utilities and
manufacturers that reflect the industry’s changing landscape,
notably the sharp decline in scrap metal prices.
Scrap steel prices have fallen 22 percent the past year and are
down 57 percent over the last two years. Nonferrous metals have had
similar price declines. U.S. steel imports have dramatically
increased over the past year and the European Union recently
launched new probes into Chinese steel imports, claiming unfair
competition. The American Iron and Steel Institute called on the
U.S. Government to “address injurious import surges.”
“We’ve become less reliant on scrap metal revenue by adjusting
our utility contracts and raising our pricing over the past six
months,” said Edward R. (Jack) Cameron, ARCA Recycling’s President.
“We’ve been very busy with new utility contracts, as we announced
last month.”
Cameron added, “Utilities, manufacturers, retailers and
consumers are all realizing the landscape has changed dramatically,
evidenced by many private and public recycling programs struggling
financially. Sharing costs ensures the long-term viability of a
recycling market that delivers important environmental
benefits.”
For the recycling of every 1,000 refrigerators that were more
than 20 years old, the EPA estimates more than $800,000 in benefits
through lower energy consumption and fewer harmful emissions.
ApplianceSmart, ARCA’s retail arm, was the first independent
retailer to join the EPA’s Responsible Appliance Disposal (RAD)
Program, which launched ten years ago. National appliance retailers
Home Depot, Best Buy and Sears – also RAD members – have recently
started charging fees for recycling TVs, monitor and select
appliances. Industry trade media expect more fee-based recycling
initiatives going forward as a more sustainable business model is
developed.
ARCA has nearly 40 years of leadership in appliance recycling,
including regional processing centers across the U.S. and
state-of-the-art technology that removes environmentally damaging
substances and produces byproducts for recycling.
About ARCAARCA's three business components are uniquely
positioned in the industry to work together to provide a full array
of appliance-related services. ARCA Advanced Processing, LLC
employs advanced technology to refine traditional appliance
recycling techniques to achieve optimal revenue-generating and
environmental benefits. ARCA (www.ARCAInc.com) is also the
exclusive North American distributor for UNTHA Recycling Technology
(URT), one of the world's leading manufacturers of technologically
advanced refrigerator recycling systems and recycling facilities
for electrical household appliances and electronic scrap.
ARCA's regional centers process appliances at end of life to
remove environmentally damaging substances and produce material
byproducts for recycling for utilities in the U.S. and Canada.
Eighteen company-owned stores under the name ApplianceSmart, Inc.®
(www.ApplianceSmart.com) sell new appliances directly to
consumers and provide affordable ENERGY STAR® options for
energy efficiency appliance replacement programs.
This press release contains statements that are forward-looking
statements as defined within the Private Securities Litigation
Reform Act of 1995, including statements regarding ARCA's future
success. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from the statements made, including the risks associated with
general economic conditions, competition in the retail and
recycling industries and regulatory risks. Other factors that could
cause operating and financial results to differ are described in
ARCA's periodic reports filed with the Securities and Exchange
Commission. Other risks may be detailed from time to time in
reports to be filed with the SEC.
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version on businesswire.com: http://www.businesswire.com/news/home/20160308006347/en/
ARCA Recycling, Inc.Edward R. (Jack) Cameron,
952-930-9000President
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