Being first to market brings the opportunity for great profits and rewards. It also brings issues that may or may not have been considered when the initial concept was conceived. Solving these issues is the task that ultimately defines the company and its ability to operate efficiently and profitably. New market creation is one of the more risky investments one can make, but if the concept is sound and management is flexible enough to overcome in uncharted territory, large profit potential can await.
Blue Earth Solutions Inc., a development stage polystyrene recycling company, works to collect, recycle and resell polystyrene plastic through the use of a closed cycle process and proprietary technology. The company is currently working to open its first processing center in Florida and is in-process to launch additional facilities in Georgia and Tennessee.
The company is quickly ramping operations to capitalize on a market that is undeveloped. While glass and other plastic products have found favor with state recycling programs, polystyrene has gone largely unnoticed as a recyclable. To this end, the company is quickly beginning to take advantage with the opening of its first processing center in Florida. Here the company consolidates raw material from its current vendors to begin the transformation process of the polystyrene into a gel and later plastic pellets for resale to manufacturers of various plastic products. Interestingly, the company’s main hurdle was not the process to convert polystyrene to gel and pellet, but in the creation of an infrastructure to collect the raw material in the first place. Extensive work has arrived at solutions to this issue and building programs are being instituted.
As with glass and plastic recycling, state aid has been a necessity to develop what is now considered a community service. In this regard, Florida, Georgia and Tennessee have begun the bonding process to facilitate processing centers being built within their respective state. Although sponsored by the states, the bonding financing will be private in nature with the company working with investment agents to facilitate the transaction. How many processing centers will be needed per state is yet to be determined, but state offerings have been initiated at between $9-10 million per facility.
From the company’s end, truck and trailer purchases have been committed to and expanded from original plans. Apparently, and according to filings, truck and trailer commitments were doubled to meet solid demand even as the company ramps. Although it would seem that the company will need to get itself stabilized before looking too far down the road, future building plans are slating Texas, Utah, California, Nevada and Arizona.
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