New owners of a single-polymer plastics company were keen to generate cost-savings on their facility and to explore efficiency improvements that would enable the payback period to be minimised.
The new team had a huge amount of experience in the manufacturing industry and were recommended to Entire Recycling as specialists in the recycling of plastics and nylon.
The Client’s Objectives
The client’s main objective was to obtain the best rebate possible. Their main measure for success was the price per kilo that they were offered for their rebate.
During our conversation, however, it was pointed out that a recycling solution could offer significant savings to staff costs as well as maximising the revenue through rebate.
As the company was scaling up production from 50 to 100 tonnes a week, the saving (which amounted to the labour of an additional person) would have a significant impact on their cashflow.
Our solution included a gated extraction system that would work on 12 machines in the plant and separate natural waste from coloured waste as mixed colours could only be turned back to a black colour & the current mixing of these materials was resulting in the company getting 50% reduction in the maximum rebate available.
By separating the polymer in a natural format, greater value was extracted for it in the marketplace.
Our work included a detailed audit of the waste & machines that were being used. We identified where the rebate could be increased and time saved by the installation of an extraction and gating system and project managed its installation.
We offered the client a flexible range of options regarding payment for the extraction system. The client was happy to invest the capital in the machinery and this had a comfortable payback within 3 years.
The installation was undertaken within weeks
The Value to the Customer
Entire Recycling were able to offer far greater value to the company that just through the rebate price per kilo. By segregating the waste, Entire were able to ensure that a far greater proportion of waste was offered the highest price per kilo. By offering a waste extraction solution, there were huge savings in staff costs.
The value to the customer was immense:
- The new owners were able to use our expertise in providing a waste extraction solution that enabled them to minimise staff costs and maximise their profitability
- The segregation of the polymer through a gated extraction added a further £90k to the company’s bottom line
- 40 man hours per month were saved in labour from the original waste removal process across the 12 machines