waste oil recycling business plan pdf

Waste Oil Recycling Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Green & Eco-friendly

Do you want to start a waste oil recycling company? If YES, here is a detailed sample waste oil recycling business plan template & FREE feasibility report.

Waste oil is simply oil that has been contaminated with substances that may or may not be hazardous. Waste oil is considered a valuable resource. However, presently, with improvement in technology these oils can be recycled and reused. Aside from helping the environment and promoting sustainability, it is a good way to earn a good income.

Although it is capital intensive and requires a lot of effort and patience, it is recession proof with a lively market aided by the growing awareness of environmental sustainability and Waste Management. The best way to earn in this business will be to provide customers with the finest and best quality of product.

A Sample Waste Oil Recycling Business Plan Template

1. industry overview.

According to industry reports, macroeconomic factors such as growth in the GDP in North America and Europe, gradual recovery of the industrial sector in these region, and increase in the energy demand of the rising population across the world are expected to drive the global waste oil market in the near future.

Developing economies offer significant growth opportunities to the market, as penetration of equipment with advanced technologies is less in these countries.

According to reports, the automotive sector witnessed a rebound in 2017, owing to the rising energy demand of the every growing population, particularly in developed economies. This can be attributed to robust economic growth in Asia Pacific and Europe.

In North America, market expansion and increase in the demand for re-refining created favourable conditions last year. These are expected to continue during the forecast period. Note that economic recession and political instability across the globe are likely to delay or discontinue infrastructure development activities for waste oil in the next few years.

Nonetheless, increase in industrialization and rise in demand for sustainable energy in most regions of the globe are projected to boost the global waste oil market. Although high installation cost of waste oil plants is likely to constrain adoption of waste oil by small industries with low capital investment.

Waste Oil is commonly used in the automotive and industrial sectors for re-refining applications. Experts project more investments in automotive activities coupled with rapid industrialization and urbanization to grow demand for waste oil.

Once waste oil is used, it can be collected, recycled, and re-used. Asia Pacific is projected to emerge as a market leader for waste oil in the next few years.

High environment-consciousness in Europe and North America is expected to drive the waste oil market in these regions in the near future. A large number of alignments between manufacturers and technology developers are likely to propel the global waste oil market in the next few years. The global waste oil market is highly competitive. Leading players dominate the market.

2. Executive Summary

Penchant Oil® Waste Oil Recycling, Inc.® Waste Oil Recycling, Inc. is an innovative waste management company that creates high-grade fuel oil made from waste oil, using a self-cleaning filter that reduces labour by 75 percent, maintenance by 50 percent, in 60 percent less production space.

According to research, over 200 million gallons of used motor oil are improperly disposed of by being dumped on the ground, tossed in the trash (ending up in dumpsites), and poured down storm sewers and drains.

Penchant Oil® Waste Oil Recycling, Inc., a Houston, Texas based firm will be renowned for our rich experience in the waste/Used Lube Oil re-refining with related activities, production of high grade fuel oil, blending of waste lube oil to convert it to different grades of automotive engine oil & industrial oil, processing of light hydraulic oil and de-odorized low aromatic white spirit.

Penchant Oil® Waste Oil Recycling, Inc. will also offer advanced, easy operative, most economical and highly profitable technology and expertise for the production of all our products and services. We anticipate that Trans Ocean Supplies will provide the majority of all equipment contract and supplies.

Our facility will result in the employment of a construction workforce averaging 12 people and an initial operational workforce of seven to 10 employees. With the enforcement of environmental legislation in Houston, Texas, there is a growing need for wastes generated in the course of industry to be effectively treated prior to disposal using best available technologies.

Efficient environmental management, especially in terms of waste management, has become necessary company practice due to legislative impacts and the expectations of the corporate sector and the entire city. Industries are currently mandated to meet their obligations for due diligence in their activities and maintain a duty of care for the environment.

At Penchant Oil® Waste Oil Recycling, Inc., we believe the industry in the whole of Texas would benefit from the existence of a state-of-the-art treatment facility that would act as a catalyst for future industry growth in the area. Our proposed facility will perform crucial roles in automotive oil waste management in the whole of Houston and the surrounding area.

We strongly believe that the protection of the environment is the responsibility of the whole community and that Penchant Oil® Waste Oil Recycling, Inc. can work closely with the government of Houston to achieve the goal of Ecologically Sustainable Development (ESD).

We believe that the establishment of this facility capable of offering best available technology should greatly reduce uncontrolled environmental impacts from waste automotive oil. Additional benefit will include total management of wastes, reduction in contaminated sites and a reduction in long-term risks to the Government and the general community.

3. Our Products and Services

Penchant Oil® Waste Oil Recycling, Inc., a waste management recycling company based in Houston, Texas, reclaims used motor oil and filters, along with industrial commodities. Though waste oil is required for reuse in much of united states, we at Penchant Oil® Waste Oil Recycling, Inc. want to capture an underserved market niche for a higher grade fuel oil (Base Oil SN 150/ 300/ 500), made from processed waste oil.

We will also blend oil with additives to produce different grades of motor engine oil and industrial oil. We also plan to process diesel to produce light hydraulic oil and process kerosene oil to produce different grades of de-odorized low aromatic white spirit.

4. Our Mission and Vision Statement

• Our vision at Penchant Oil® Waste Oil Recycling, Inc. is to produce unique and affordable products from waste oil that are properly re-refined into lubricants, processed into fuel oils, and used as raw materials for the refining and petrochemical industry.
• Our mission at Penchant Oil® Waste Oil Recycling, Inc. is to establish a waste oil recycling facility that will utilise proven, appropriate technology to minimise environmental impacts from the treatment, transport, storage and disposal of motor oil.

Our Business Structure

Our facility will be designed to minimise any impacts on the surrounding environment. The operational procedures will be developed to ensure that the facility is managed and operated in accordance with company and legislative requirements. The parameters and procedures have been selected from best practices adopted by a handful of top companies throughout the United States.

The auditing programme documented in the facility’s management plan will ensure that the highest safety and environmental standards will be maintained throughout the operational life of the facility. A summary of the management commitments and responsibilities to ensure the development of an environmentally responsible facility is outline below.

• Chief Executive Officer (Owner)

Company Manager

Human Resources and Admin Manager

Facility Operations Supervisor

Facility Operator

Facility Maintenance Mechanic

Recycling Technician

Facility Maintenance Helper

5. Job Roles and Responsibilities

Chief Executive Officer

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Tasked with fixing prices and signing business deals
• Tasked with providing direction for the business
• Tasked with signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Tasked with overseeing the smooth running of the  company
• Makes sure that quality is maintained at all times
• Maps out strategy that will lead to efficiency amongst workers in the company
• Tasked with training, evaluation and assessment of the workforce
• Make sure operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Make sure that the company meets the expected safety and health standard at all times.
• Tasked with overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Tasked with training, evaluation and assessment of employees
• Oversees the smooth running of the daily business activities
• Ensures Health and Safety is the number one priority by complying with all safe work practices, policies, and processes and acting in a safe manner at all times
• Performs multiple site-specific plant operations, including but not limited to, drum pumping, drum dumping, truck offloading/loading in compliance with DOT segregation requirements, scanning applications for waste tracking, loading trucks and conveyor belts, and warehousing
• Supervises multiple employees including operators and foreman to ensure safety and production goals are achieved in plant operations
• Ensures that employees follow and maintain all applicable Health and Safety Standard Operating Procedures
• Ensures that plant-specific permit and compliance standards are maintained at all times
• Works under the direction of the Plant Operations Manager
• Follow and support all safety policies and procedures
• Ensure all waste or by-products are disposed of according to relevant rules and regulations
• Perform material sampling
• Conduct sample analysis
• Record sampling results
• Inform Supervisor of any variances
• Maintain accurate and neat records and production samples as required
• Monitor wastewater prior to discharge or treatment
• Clean and maintain operating area per daily/weekly/monthly cleaning schedule
• Perform daily/weekly/monthly maintenance as directed
• Clean and calibrate sampling probes
• Identify process challenges and coordinate troubleshooting efforts with Supervisor
• Record inbound & outbound weights of materials throughout unit operations
• Record shipping/receiving information
• Record all quality or inspection data as instructed
• Record all production data as instructed
• Responsible for daily directing and performing preventative and routine maintenance on a variety of facility equipment including, but not limited to: pumps, compressors, vehicles, basic instrumentation, heat exchangers, pressure vessels, and other equipment.
• Advises plant personnel on maintenance equipment related concerns.
• Ensures that all safety practices are followed during maintenance activities Communicates immediately to the Supervisor any safety issues which cannot be immediately resolved at his level.
• Is responsible for the daily scheduling and prioritization of Maintenance activities
• Initiates purchase orders for consumable supplies.
• Identify and remove non process-able material from a moving conveyor.
• Visibly identify potential hazards or items that may affect the operation of the line and stop the process until such hazards can be removed.
• Complete other tasks as requested by the MRF Supervisor and plant management.
• Perform all maintenance operations in accordance with technical specifications and safety regulations.
• Help maintain equipment such as: feed systems, conveying systems, scrubber systems, shaker systems, classifying systems, discharge hopper systems, weigh systems, cement storage systems, central mixer systems, load carrying systems, drive systems, water systems, air systems, electrical systems, crusher systems, hydraulic systems, recycling systems, structural systems, and other miscellaneous equipment.
• Assist with periodic inspections in accordance with the company Prescribed Inspection Schedule.
• Perform all pre and post-trip inspections and complete daily inspection reports.
• Operate vehicles and equipment in a safe manner. Follow proper procedures and complete required documentation if an accident or injury occurs. Notify manager or Safety Department as required.
• Understand and comply with all safety rules set forth by the company and governmental regulatory agencies.
• Other duties as assigned
• Assist in the hydro blasting of plant equipment
• Clean-up of plant process areas
• Conduct inspections of equipment’s integrity.
• Clean-up hazardous waste spills by vacuum trucks, pump carts, absorbent material, pressure washer, steam cleaner and other means.
• Handle materials that are flammable, toxic, corrosive, and reactive.
• Enter confined spaces to clean tanks and vessels.
• Perform Lockout, Tag-Out (LOTO) and energy isolation as required.
• Follow all safety procedures and take an active role in personal safety and the safety of those around them.
• Operate a forklift, man-lift, vacuum truck, backhoe, and other heavy equipment.
• Perform other daily duties as assigned with little supervision.

6. SWOT Analysis

We at Penchant Oil® Waste Oil Recycling, Inc. due to our zeal for excellence have been able to contact some of the finest business consultants in Houston to look through our business concept.

Together we were able to accord ourselves the second chance to be sure that we have what it takes to run a standard waste oil recycling facility that can compete favourably in the industry. Outlined below is a of the result of our SWOT Analysis conducted for Penchant Oil® Waste Oil Recycling, Inc.:

• Vast Industry Experience
• Regulatory Agencies Increasingly Engaging in Initiatives in Educating about the Vast Health Hazards of the Inadequate Disposal of Used Motor Oil
• Houston motor market
• Rising Supply of Counterfeit Engine Oil Product
• Government Regulations Regarding the Emission are Anticipated to Restrain the growth of this Market

Opportunities

• Growing Demand for Re-Refined used Oil in a Petroleum Refinery is also Boosting the Automotive Oil Recycling Market
• Increase in Government Regulations on Automotive Oil Recycling Market During the Forecast Period
• Issue Related Towards the Content of the Highly Toxic Material While These Oils are in the Processing

7. MARKET ANALYSIS

• Market Trends

Our raw material, waste oil and petroleum products originate from crankcase and lubrication wastes generated during the normal maintenance of motorized vehicles and machinery. These oils may be used directly without reprocessing as road oils for dust control, or may be mixed with virgin fuel oil for use in boilers for heating or electrical power generation.

Experts suggest the emissions of heavy metals and other related environmental problems should be carefully evaluated before burning or otherwise recycling waste oil.  Indeed the process of refining waste oil to produce lubrication oils or fuel oils is technologically possible and currently is being practiced in many areas.

But hindrance in removing impurities of lead, dirt, metals, oxidation  products, and water, along with environmental standards and product specifications, have negatively affected the widespread practice of recycling in the past.

However, the improvement of recycling technology, coupled with economic incentives, may aid the resurgence of recycling petroleum products in the near future. Waste oil and its impurities pose potential threats to the environment, whether the waste oil is indiscriminately dumped on land or into watercourses or burned.

Notably, even the refining process may produce acid sludge and contaminated clays that must be disposed of in a way that is safe environmentally. Economic and environmental benefits in using waste oils to produce BD are emphasized when it is sourced, produced, and sold locally.

Presently, heterogeneous acid-catalysed was found to be the most merit sustainable technology among available BD production technologies as it offers low energy requirement and easy separation and purification technology of BD and glycerol.

Meanwhile, there are still opportunities for developing other technologies to tackle the problem in handling such oil stock with an unpredictable composition as well as enhancing the revenue from BD and its by-product. Finding compact technology to prepare and process waste oils into BD can provide a flexible way to optimize the economic and environmental feasibilities of the BD production from waste oils.

8. Our Target Market

Aside from the refining and petrochemical industry we plan to serve, our business location, Houston, provides us with adequate supply of raw materials and a viable market for our products. Houston remains the most populous city in the U.S. state of Texas, fourth most populous city in the United States, most populous city in the Southern United States, as well as the sixth most populous in North America With an estimated 2018 population of 22,325,502.

Unlike most places, high oil and gasoline prices are beneficial for Houston’s economy, as many of its residents are employed in the energy industry. Houston is the beginning or end of numerous oil, gas, and products pipelines. The city is considered an automobile-dependent city, with an estimated 77.2 percent of commuters driving alone to work in 2016, up from 71.7 percent in 1990 and 75.6 percent in 2009.

According to research, another 11.4 percent of Houstonians carpooled to work in 2016, while 3.6 percent used public transit, 2.1 percent walked, and 0.5 percent bicycled. A commuting study estimated that the median length of commute in the region was 12.2 miles (19.6 km) in 2012.

Our Competitive Advantage

At Penchant Oil® Waste Oil Recycling, Inc., our competitive advantage is our revolutionary approach to the re-refining of waste oil. All wastes directed to our facility will be assessed to determine the most appropriate treatment and disposal process.

We will encourage generators to segregate waste at the source wherever possible to ensure waste treatment costs are left to a minimum. We will also provide scientific and environmental advice to industries in our region to optimise processes, minimise waste and assist generators to meet cleaner production targets.

We make use of the Wiped Film Evaporator (WFE), a Short path distillation; followed by Solvent extraction or Mild Hydro fining finishing process involved for the recycling (Re-refining) of Waste Oil to Base Oil group I, group II and group II+ with zero environmental waste: no air, no solid and no liquid pollution.

The WFE is ideally suited to process hard-to-handle, heat sensitive and viscous materials. These are just some of the many and varied products that the WFE processes. It is designed to carry out deodorization, distilling, concentration, re-boiling, solvent recovery and stripping, then re-refined oil is ready for oil blending stage.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Penchant Oil® Waste Oil Recycling, Inc. is an innovative waste management company that creates high-grade fuel oil made from waste oil, using a self-cleaning filter that reduces labour by 75 percent, maintenance by 50 percent, in 60 percent less production space.

We will generate revenue by producing and selling high-grade fuel oil (Base Oil SN 150/ 300/ 500), made from processed waste oil. We will sell oil blended with additives to produce different grades of motor engine oil and industrial oil. We also process diesel to produce light hydraulic oil and process kerosene oil to produce different grades of de-odorized low aromatic white spirit.

10. Sales Forecast

From our extensive market research, we believe Penchant Oil® Waste Oil Recycling, Inc. will be having exceptional sales in our first year of operation. We believe that our direct unit costs include the costs for the waste oil forces that will collect and supply the oil we will be re-refining.

The costs we believe are roughly 35 percent of all direct costs each month. Our sales projections at Penchant Oil® Waste Oil Recycling, Inc. was analysed from two main revenue streams: the public, and the petrochemical and automotive industries.

We believe that our sales projections for the second year of operation will be based on a modest growth rate for sales. We are projecting a growth rate of 20 percent, believing our advertising will bring in new clients daily. Outlined below are the sales projections of Penchant Oil® Waste Oil Recycling, Inc.:

• First Year: $795,000
• Second Year: $2,400,000
• Third Year: $6,000,000

Note : it is worthwhile to note just like we stated above that this forecast was done based on what is obtainable in the industry and with the believe that none of the threats we mentioned above will be a hindrance or may likely appear.

• Marketing Strategy and Sales Strategy

At Penchant Oil® Waste Oil Recycling, Inc., we will market and supply our unique products to refining and petrochemical industry and to motor users who need our green innovative products. Our plan is to aggressively focus first on local markets, and then on export options.

We plan to emphasize the reliable year-round output of our recycling company and hardworking workforce as well as our ability to produce good reliable by-products of waste oil.

We know the importance of marketing in this industry, and we understand the need to reach our prospective customers and leverage all available sources, which is why we will also develop a website and advertise on the Internet, although these future marketing avenues are not included in this plan.

11. Publicity and Advertising Strategy

Our publicity strategy will be based on giving our clients the products they need for the right price. We plan to maintain an extensive marketing campaign that will ensure maximum visibility for the business in our targeted market. Below is an overview of the publicity and advertising strategies for Penchant Oil® Waste Oil Recycling, Inc.:

• Establish relationships with petrochemical and automotive businesses within the target market.
• We hope to place adverts on both print (community based newspapers and magazines) and electronic media platforms; we will also advertise our  on automotive magazines, waste management and other relevant environmental sustainability programs on radio and TV
• We will also sponsor relevant community based events/programs
• We also plan to make use of various online platforms to promote the business. This will make it easier for people to enter our website with just a click of the mouse. We will take advantage of the internet and social media platforms such as; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• We also plan to mount our Bill Boards on strategic locations all around Houston, Texas.
• We also plan to distribute our fliers and handbills in target areas
• We plan to make sure that all our workers wear our branded shirts and all our official vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Our pricing at Penchant Oil® Waste Oil Recycling, Inc. will be based on serving our customers with expert service and product knowledge, to build our marketing plan to reach diverse individuals and industries, while also maximizing profits.

We believe that to get the right pricing for our products, we need to make sure that we choose a good location for our business , choose our suppliers wisely, and reduce the cost of running our facility to the barest minimum. Also, make sure we attract buyers to our business, as against taking our products to buyers; with this, we would have successfully removed the cost of transporting the goods and other logistics from the equation.

• Payment Options

After our extensive research and thorough discussion, we understand that different customers prefer different payment options as it suits them but at different times and ways. We plan to make sure that we provide them with payment options that will make their transactions less stressful and very open. Listed below are the payment options we at Penchant Oil® Waste Oil Recycling, Inc. plan to be making available to our customers:

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

We have also chosen to collaborate with a known bank in the United States in order to give our customers the best they can ever get in the agricultural sector of the United States.

13. Startup Expenditure (Budget)

We hope to maintain an average gross margin at or above 60 percent, generate an average of $1,000 of sales each business day of each month, and realize an annual growth rate of 10 percent in Year 2. Our unique management believe that these objectives and goals are very much achievable.

That is the main why we are being very detailed about all information associated with our facility. We have also decided on the possible factors to spend our start-up capital and they include:

• The price for incorporating our farm in United States of America – $750
• Our budget for key insurance policies, permits and business license – $40,000
• The cost of acquiring/leasing our facility and land – $345,000
• The budget for preparing our facility – $25,000
• The price for acquiring the required working tools and equipment/machines et al– $1,000,000
• The price of Launching an official Website – $600
• The budget for paying our workers for 1 year – $500,000
• Other business requirements (Business cards, Signage, Adverts and Promotions et al) – $2,000
• Miscellaneous – $50,000

From our detailed cost analysis above, we will need approximately $2million to start Penchant Oil® Waste Oil Recycling, Inc..

Generating Funding/Start-up Capital for Penchant Oil® Waste Oil Recycling, Inc.

Indeed having the necessary finance for our business will go a long way to ensure we achieve our fragility goals and vision. We also understand that funds are very important factor when it comes to building any successful business anywhere in the world. Penchant Oil® Waste Oil Recycling, Inc. is a business owned by four partners and they hope to keep it that way with the funding and decision-making.

This is why they have decided to leave the means of generating funds for the business in these following ways until further notice.

• Raising part of the startup capital from personal savings
• Raising part of the startup capital from family members and friends (soft loans and gifts et al)
• Raising a larger chunk of the start-up capital from the sale of shares and equity

14. Sustainability and Expansion Strategy

It is important to note that our company technology employs “hydrodynamic cavitations”, an industrial phenomenon, produced by pressure variations and obtained using the geometry of the system creating velocity variation. Cavitations itself is seen as “a technology of future.

Our conventional techniques of biodiesel production at Penchant Oil® Waste Oil Recycling, Inc. typically utilize temperatures in the range of 70 to 200°C. also,  pressures in the range of 6 to 10 atm and reaction times of up to 70 hours for achieving conversions in the range of 90 to 95 percent based on the type of raw material used (usually mixtures of fatty acids obtained as waste).

We believe that the use of hydrodynamic cavitations decreases reaction time and temperature to 70 min. and 30C respectively. Therefore, use of cavitations reactor for production of biodiesel allows us to save up to 10 times on electricity.

Meanwhile, we require land zoned as General Industry with sufficient area to accommodate our proposed development and allow for future expansion if required. Our subject land complies with these zoning and size requirements.

Our site in Houston affords geographical and commercial advantage for the local industries, the Houston – Texas petrochemical activities and the local community. Access to the site is satisfactory for six wheel, eight wheel and semi trailer and B-double vehicles. The site is in close proximity to nearby highways.

It is assumed that the volumes of liquid waste, especially waste oil, will increase with the advent of stricter environmental laws, tighter regulation on trade waste discharge to the sewer, industrial development and expansion of Greenfield sites that will be subject to more stringent planning and assessment requirements, and increased public environmental awareness and accountability of companies.

The availability of a facility capable of providing industries with a safe and responsible means of waste oil management using cost-effective, environmentally sound treatment processes will form an important element in the life cycle stewardship of waste oil.

Potential impacts on the environment from our facility, once operational, include risks from the handling, storage and treatment of used motor oil, atmospheric emissions, and management of potentially contaminated storm water and contamination of the environment from spill or leaks.

Nonetheless, our proposed facility has been designed to mitigate the potential for occurrence of incidents that could lead to impact on the environment. This will be reinforced by strict adherence to operational procedures.

Notwithstanding, the construction of Penchant Oil® Waste Oil Recycling, Inc. will provide industry and the Houston community with a viable, safe and economic alternative for waste oil disposal in line with government legislation. Overall, the city and environment will benefit from the reduction in exposure to the risks posed by the illegal or improper disposal of waste oil.

Checklist/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts : Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents : In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees : In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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Tips on Starting an Oil Heat Delivery Business

How to start a small concrete & asphalt recycling business, how to start a computer recycling business.

• How to Start a Metal Recycling Business
• How to Make Money With Scrap Copper

Every internal combustion driven automobile must be lubricated with oil. The friction inside a running engine breaks down that lubrication. This means the oil must be changed periodically to protect the engine. Many car owners change the oil themselves to save money. This oil is often improperly disposed of in a way that causes environmental contamination. State governments have taken notice of this predicament and have begun to offer incentives to garages that collect waste oil for recycling. You can offer oil recycling service at your garage as a way to bring in customers.

Purchase a large plastic container that holds at least 10,000 gallons. Pay a contractor to install this container underground on your place of business. Only tank installation contractors are qualified to do this type of work legally and safely, so choose wisely to avoid fines and the loss of your business.

Review your state's guidelines for oil collection and recycling. Modify your company's collection protocol to conform with the guidelines. Begin offering oil recycling service to your customers. Pay each customer the amount required by the state for each quart of oil turned in for recycling.

Save a copy of every receipt you write for the payments made to customers for oil. Fill out the appropriate paperwork and turn it into your state's regulatory agency periodically for reimbursement.

Contact an oil disposal company. Research every potential company to find an ethical partner that strictly adheres to all state and federal environmental laws. Arrange for periodic pickup of the waste oil you collect.

• Used Oil Recycling Program; Certified Collection Centers; California Department of Resources Recycling and Recovery; July 2011
• Improper storage or disposal of waste oil is a crime under federal and state laws. Violation of these laws will lead to the loss of your business, hefty civil fines and criminal prosecution involving prison time.

After learning electronics in the U.S. Navy in the 1980s, Danny Donahue spent a lifetime in the construction industry. He has worked with some of the finest construction talent in the Southeastern United States. Donahue has been a freelance writer since 2008, focusing his efforts on his beloved construction projects.

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Starting Recycling Business Plan (PDF)

In a world where environmental consciousness is at the forefront of global concerns, starting a recycling business has never been more relevant. As our planet grapples with the pressing issue of waste management and resource conservation, entrepreneurs are finding innovative ways to turn trash into treasure. Starting a recycling business today not only aligns with the global commitment to reducing waste and conserving resources but also presents a compelling opportunity for profitability. As our society becomes more eco-conscious, the demand for recycling services and products has surged, making this industry one of the fastest-growing sectors in recent years. Whether you’re driven by a passion for sustainability, a desire to make a positive impact on your community, or the potential for a lucrative venture, embarking on the journey of launching a recycling business is both a noble and profitable endeavor. This article will outline how to start the recycling business, and the recycling business plan – PDF, Word and Excel.

Location for a Recycling Business

Selecting the ideal location for your recycling business is a critical decision that can significantly impact your success. The key to success lies in proximity to your target market and the availability of the necessary resources. Urban areas, with their dense populations, often provide a robust customer base and a steady supply of recyclable materials. Additionally, being close to industrial and commercial centers can facilitate partnerships with businesses looking to dispose of their recyclables responsibly. However, competition in urban areas can be fierce, so conducting a thorough market analysis is essential to identify underserved niches. Consider the logistics of transportation as well; being situated near major highways, ports, or railroads can streamline the movement of materials in and out of your facility.

Premises & Buildings

Once you’ve determined the ideal location for your recycling business, the next crucial step is to secure suitable premises and buildings. The choice of facilities will depend on the scale and nature of your operations. For small-scale ventures, you might start with a modest warehouse or even a part of your own property to keep initial costs in check. However, as your business grows, investing in a purpose-built facility or leasing a larger industrial space may become necessary. Consider the layout and design of your premises carefully, as efficient workflow is essential in the recycling industry. Adequate space for sorting, processing, and storage is critical to ensure the smooth operation of your business. Additionally, take into account environmental regulations and zoning laws that may impact your choice of location and building type. Proper waste disposal and safety measures are paramount, and your facility should comply with all relevant codes and standards. By carefully selecting the right premises and buildings, you’ll create a solid foundation for your recycling business to thrive and expand in the years to come. The cost of acquiring or leasing the premises should be included in the recycling business plan.

Machinery And Equipment For Recycling

The type and scale of equipment you’ll need depend on the specific materials you intend to recycle. Basic equipment may include collection bins, conveyor belts, shredders, and balers for processing and preparing recyclables. For more specialized operations, such as electronic waste recycling or plastic extrusion, you’ll require highly specialized machinery. It’s crucial to strike a balance between the initial capital investment and the efficiency of your equipment. Newer, more efficient machines may have a higher upfront cost but can save you money in the long run through increased productivity and reduced maintenance. Regular maintenance and proper training for your staff on equipment operation and safety are equally vital to ensure smooth operations and a safe working environment. By carefully assessing your needs and investing wisely in machinery and equipment, you’ll be better equipped to meet the demands of the recycling industry and maximize your business’s profitability. Your recycling business plan should include the costs of acquiring all the required equipment and machinery.

The choice of vehicles is a critical consideration in the logistics of a recycling business. Your fleet should be tailored to your specific needs, taking into account the types of materials you handle, the volume of recyclables you collect, and the distances you need to travel. Common vehicles in the recycling industry include collection trucks, roll-off containers, and transport trucks. For curbside recycling services, smaller collection trucks equipped with compartments for different materials are often employed, while larger transport trucks are essential for moving bulk recyclables to processing centers or manufacturers.

When selecting vehicles for your recycling business, prioritize fuel efficiency, reliability, and safety. Opting for vehicles that meet or exceed emission standards can reduce your environmental impact and may qualify you for certain incentives or certifications. Regular maintenance and safety inspections are crucial to keep your fleet running smoothly and to ensure the safety of your drivers and the public. Consider leasing or financing options to manage the upfront costs of acquiring vehicles, and factor in insurance costs as well. A well-maintained and appropriately sized fleet is essential to efficiently collect, transport, and process recyclables, ultimately contributing to the success of your recycling business.

Materials Which Can Be Recycled

In the recycling business, the heart of your operations lies in the recyclable materials themselves. Understanding the types of materials you plan to collect and process is paramount to the success of your venture. Recyclable materials can vary widely and encompass everything from paper and cardboard to metals, plastics, glass, batteries, rubber and electronic waste. The first step is to identify and focus on the specific materials that have demand and value in your target market. Once you’ve identified your target materials, it’s essential to establish efficient collection, sorting, and processing methods. Staying informed about market trends and the evolving needs of manufacturers and consumers can also help you adapt and expand your range of accepted recyclable materials. Building strong partnerships with suppliers, local businesses, and municipal recycling programs can ensure a steady supply of materials for your operations and contribute to the overall sustainability of your recycling business.

Recycling Process

This multi-step procedure typically begins with the collection of recyclables, either from curbside pickups, drop-off centers, or direct partnerships with businesses and institutions. Once collected, the materials are sorted, often mechanically and manually, to separate different types and grades of recyclables. Efficient sorting is crucial, as it ensures the purity and quality of the materials, making them more valuable in the recycling market. Following sorting, the materials undergo processing, which may involve cleaning, shredding, melting, or other treatments depending on the material type. This stage prepares the recyclables for manufacturing into new products. Finally, the recycled materials are sold to manufacturers who use them as raw materials for various products, closing the loop in the recycling process. It’s essential to maintain the highest standards of quality and consistency throughout this process to meet the demands of both consumers and manufacturers, ensuring the continued success of your recycling business.

Recycled Products

Recycling companies play a pivotal role in the production of eco-friendly and sustainable products that are in growing demand across various industries. These companies transform recycled materials into a wide range of products, catering to the needs of manufacturers seeking environmentally responsible alternatives. Some of the most common recycled products include recycled paper and cardboard, which find applications in packaging, printing, and stationery. These products not only reduce the strain on natural resources but also meet the increasing consumer demand for sustainable packaging solutions. Recycled plastics are another significant category of products that have gained immense popularity. These plastics can be transformed into a myriad of items, from plastic lumber for construction and furniture to recycled PET bottles used in the production of clothing and textiles.

The other essential product is recycled metals, which are a valuable resource for various manufacturing sectors. Recycled metals like aluminum, steel, and copper are extracted from discarded items, such as old vehicles, appliances, and construction materials, and repurposed for a wide range of applications. These recycled metals can be used to create everything from automotive parts and building materials to electronics and packaging.  Manufacturers recognize the value of incorporating recycled content into their products, not only for environmental reasons but also as a way to enhance their corporate sustainability credentials. As consumer awareness of environmental issues continues to rise, the market for recycled products is expected to expand further, offering a promising opportunity for recycling companies to meet the demand for eco-conscious alternatives while contributing to a greener and more sustainable future.

Recycling Services

In addition to producing recycled products, recycling companies also offer vital recycling services that contribute to a more sustainable future. These services encompass a wide range of activities aimed at efficiently collecting, processing, and managing recyclable materials. One fundamental service is curbside recycling collection, which involves the regular pick-up of recyclables from households and businesses. This convenient option encourages participation in recycling programs and ensures that valuable materials are diverted from landfills.

Recycling companies also provide drop-off recycling centers, where individuals can personally deliver their recyclables. These centers serve as accessible points for communities to dispose of items like paper, plastics, and glass, promoting recycling participation and reducing the strain on local waste management systems. Additionally, recycling companies often collaborate with municipalities and businesses to develop tailored recycling programs, offering expert guidance on waste reduction and recycling best practices. By providing these essential recycling services, recycling companies play a crucial role in advancing sustainability efforts, reducing landfill waste, and conserving valuable resources.

The success of a recycling business is not only dependent on machinery and materials but also on the people who operate it. Building a skilled and dedicated team is paramount to ensure the efficient and sustainable operation of your recycling venture. Your staff should be well-trained in the handling of recyclable materials, safety protocols, and the operation of machinery and equipment. Investing in training and continuous education for your team not only enhances their skills but also promotes a culture of safety and sustainability within your organization. Moreover, fostering a sense of purpose and dedication among your staff can significantly impact the overall success of your recycling business. Employees who understand the environmental and social benefits of recycling are often more motivated and engaged in their work. The salaries for all your employees should be catered for in your recycling business plan.

Understanding your potential customers and the broader market is essential for the success of your recycling business. Your customers can range from local households and businesses to manufacturers and government agencies. Conducting market research to identify your target audience and their specific needs is crucial. Explore potential partnerships with local businesses, industries, and municipalities to secure a steady supply of recyclable materials. Engaging with the community through educational initiatives and outreach programs can also help build awareness and attract more customers to your recycling services.

The recycling market is experiencing significant growth as environmental awareness continues to rise, making it a lucrative industry to be a part of. With increasing regulations promoting sustainable practices and consumer preferences shifting towards eco-friendly products, the demand for recycled materials and services is on the upswing. Additionally, as sustainability becomes a focal point for many businesses, there is a growing need for reliable recycling partners. By positioning your recycling business strategically within this expanding market, you can tap into the demand for sustainable solutions while contributing to a greener and more circular economy.

Pre-Written Recycling Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the recycling business, we encourage you to purchase our well-researched and comprehensive recycling business plan. We introduced the business plans after discovering that many were venturing into the recycling business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global recycling business plan will make it easier for you to launch and run your recycling business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a recycling business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the recycling business.

Uses of the Recycling Business Plan (PDF, Word And Excel)

The recycling business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your recycling business
• As a recycling business proposal
• Assessing profitability of the recycling business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Recycling Business Plan (PDF, Word And Excel)

The business plan for recycling includes, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the recycling business fail, so that you can avoid their mistakes
• Ways to raise capital to start your recycling business

The recycling business plan package consists of 4 files

• Recycling Business Plan – PDF file (Comprehensive Version – 111 Pages)
• Recycling Business Plan – Editable Word File (Comprehensive Version – 111 Pages)
• Recycling Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 55 pages)
• Recycling Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Recycling Business Plan (PDF)

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Get the Recycling Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your Recycling business! Check out our collection of business plans  , and more business ideas .

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Managing, Reusing, and Recycling Used Oil

Used oil is exactly what its name implies: any petroleum-based or synthetic oil that has been used. Oil keeps our cars, lawnmowers, and many other machines running smoothly. However, during normal use, impurities such as dirt, metal scrapings, water, or chemicals, can get mixed in with the oil, so that in time, the oil no longer performs well. Eventually, this used oil must be replaced with virgin or re-refined oil to do the job correctly.

On this page:

Basic Information on Handling Used Oil at Home

The benefits of reusing and recycling used oil, how it works: recycling used oil and oil filters.

Note: Information on this page is meant for consumers. For information on managing used oil at your place of business, read through our frequent questions for small businesses .

You Dump It, You Drink It

You Dump It, You Drink It (pdf) (73.4 KB) A poster for consumers and Do-It-Yourselfers on how to manage used motor oil.

You Dump It, You Drink It – Recycle Used Motor Oil Brochure (pdf) (476.1 KB) - A brochure for Do-It-Yourselfers and consumers on how to change and dispose their used motor oil.

If you are one of the many people who change their own motor oil, you too need to know how to properly manage the used oil. After all, used oil from one oil change can contaminate one million gallons of fresh water — a years’ supply for 50 people! When handling used oil, be sure to take these key points into consideration:

• Used motor oil is insoluble, persistent, and can contain toxic chemicals and heavy metals.
• It’s slow to degrade.
• It sticks to everything from beach sand to bird feathers.
• It’s a major source of oil contamination of waterways and can result in pollution of drinking water sources.

Are you a “Do-It Yourselfer” —do you change the oil in your car at home? On average, about four million people reuse motor oil as a lubricant for other equipment or take it to a recycling facility. If you plan to recycle your used oil, take care not to spill any when you collect it and place it in a leak-proof can or container.

Check with local automobile maintenance facilities, waste collectors, and government waste officials to find out when and where you can drop off your used oil for recycling. Don’t forget to drain and recycle used oil filters as well—usually you can drop off the filters at the same collection centers where you deposit used oil.

Recycling and reusing used motor oil is preferable to disposal and can provide great environmental benefits. Recycled used motor oil can be re-refined into new oil, processed into fuel oils, and used as raw materials for the petroleum industry.

Use the below resources to find recycling locations near you:

• Earth 911 Recycling Search Tool
• American Petroleum Institute Used Motor Oil Collection and Recycling Site  

Used oils such as engine lubrication oil, hydraulic fluids, and gear oils used in cars, bikes, or lawnmowers can pollute the environment if they are not recycled or disposed of properly. Used oil must be managed properly by local waste management authorities or automotive repair shops to prevent contaminating the environment. Used oil filters pose similar waste concerns. If properly drained, they can be safely recycled or disposed.

Some of the many reasons to reuse and recycle used oil include:

• Recycling used oil keeps it from polluting soil and water.
• Motor oil does not wear out—it just gets dirty—so recycling it saves a valuable resource.
• Less energy is required to produce a gallon of re-refined base stock than a base stock from crude oil.
• One gallon of used motor oil provides the same 2.5 quarts of lubricating oil as 42 gallons of crude oil.

Used oil can be re-refined into lubricants, processed into fuel oils, and used as raw materials for the refining and petrochemical industries. Additionally, used oil filters contain reusable scrap metal, which steel producers can reuse as scrap feed.

So, how is used oil recycled? Note that the most preferred option, re-refined oil—must meet the same stringent refining, compounding, and performance standards as virgin oil for use in automotive, heavy-duty diesel, and other internal combustion engines, and hydraulic fluids and gear oils. Extensive laboratory testing and field studies conclude that re-refined oil is equivalent to virgin oil—it passes all prescribed tests and, in some situations, even outperforms virgin oil.

The same consumers and businesses that use regular oil also can use re-refined oil, since re-refining simply re-processes used oil into new, high-quality lubricating oil. Any vehicle maintenance facilities, automobile owners, and other machinery maintenance operations that use oil also can use re-refined oil. In some cases, fleet maintenance facilities that use large volumes of oil arrange to reuse the same oil that they send to be re-refined—a true closed recycling loop.

• Recycle Home
• Reduce and Reuse Basics
• Recycling Basics and Benefits
• Frequent Questions on Recycling
• How Do I Recycle...
• What You Can Do
• Used Electronics
• Used Batteries
• Food Waste Prevention
• Composting at Home
• Students and Educators

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Plastics Recycling Business Plan

Start your own plastics recycling business plan

Replay Plastics

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

How much of our solid waste is plastic? The Environmental Protection Agency reports plastic made up 12% of the 254 million tons of waste generated in 2007. That’s more than 30 million tons of plastic in one year. Some reports state plastic materials can take hundreds of years to break down in a landfill. When you take part in our plastics recycling program, you join a network of Green-minded people and companies who recycle millions of tons of plastics across the United States annually.

And, for every 1 ton of plastic that’s recycled, reports estimate that 7 yards of landfill space is saved. By recycling, you can also help conserve the additional 80% of energy that’s typically used when making new plastic bottles, containers and other items instead of recycling. It’s easy to see why recycling plastic is so important.

Baled plastics, specifically plastic bottles, have a high scrap value per ton. In fact, the only other recyclable that’s more lucrative is aluminum cans.

Replay Plastics  will create a PET (polyethylene terephthalate) cleaning and refining plant located in the western United States (all 16 major North American PET recycling plants are currently located in the eastern United States or Canada). Its initial capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock presently collected in California, Oregon and Washington States, which collect over 200 million pounds per year. The Company will be vertically integrated, and use almost all of its recycled material in its Packaging Division. Any surplus materials (clean flake) produced will be sold to outside companies. The extruded sheet may then be sold to manufacturers, who will thermoform it into high-visibility packaging or use it in other high value added manufacturing operations. The strapping will be sold to companies who ship large packages or pallets, such as the lumber milling industry

Currently there is no direct competition in the western United States for either of the two divisions of the Company. Any production in the trading area remains captive and not available to our target market.

The ability of the Company to obtain a source of post-consumer bottle stock is an integral component of the strategy to vertically integrate operations and manufacture products in demand by western consuming industries. Without the cleaning and refining division, it would be difficult to source sufficient RPET flake resin at costs that would allow the Company to be competitive. 

Competition

There has been a strong demand (sellers’ market) for our products for several years. Traditional buying patterns in this industry are based on quality, price, reputation of manufacturer, freight costs, delivery times and proximity to markets. During such a sellers’ market, buying patterns are often more influenced by availability.

Replay Plastics is a manufacturing company dedicated to converting waste plastic materials into commercially viable products, utilizing environmentally friendly recycling and manufacturing methods. We intend to make enough profit to generate a significant return for our investors and to finance continued growth and continued development in quality products. We will also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas and hard work

Expectations

After a couple month start-up period to build the recycling and packaging facilities, buy equipment, and incorporate the business, Replay Plastics will begin a quick turnaround of product.

Financial Highlights by Year

Financing needed.

Our Founders will put up a total of $1.5 million dollars. We will also have a group of VC investors that will put up the 2.7 million dollars. This will give replay plastics the 4.2 million that it needs to start. 

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Problem worth solving, our solution.

Replay Plastics  will create a PET cleaning and refining plant located in the western United States (all 16 major North American PET recycling plants are currently located in the eastern United States or Canada). Its initial capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock presently collected in California, Oregon and Washington States, which collect over 200 million pounds per year. The Company will be vertically integrated, and use almost all of its recycled material in its Packaging Division. Any surplus materials (clean flake) produced will be sold to outside companies. The extruded sheet may then be sold to manufacturers, who will thermoform it into high-visibility packaging or use it in other high value added manufacturing operations. The strapping will be sold to companies who ship large packages or pallets, such as the lumber milling industry

Target Market

Market size & segments.

Strong demand for recycled plastics is working in the industry’s favor.  Major users of plastic packaging, apparently responding to consumer desires, have begun incorporating at least some recycled plastic content in their products as part of the growing interest in recycling.  Recycled resin demand is on the rise as prices for the two major recycled resins, PET and HDPE, continue to hold value or appreciate against their virgin counterparts.

In volume, PET is currently the number one recycled resin. Supply of recycled PET is in excess of 800 million pounds per year. This figure is expected to grow, reaching over 1 billion pounds during the next few years. The plastics industry has developed new markets and applications for recycled resins from both post-consumer and post-industrial sources.

PET leads the recycled recovered resins as the most visible and valuable, and its use is increasing. Of the total 3.7 billion pounds of PET consumed in 1997, just 16% was from recycled sources. Of the more than 90 billion pounds of plastics produced annually in the United States, less than 5% is from recycled sources. Plastics, after aluminium, represent the second highest value material in the waste stream and have the highest projected growth rate.

Markets and uses for recycled plastics are rapidly expanding. Plastic containers are being collected at the curb for recycling in nearly 500 communities, representing more than 4 million households. U.S. demand for recycled plastic will continue to expand and new markets will develop as technologies permit the efficient segregation and reprocessing of high-purity resins. Improved quality of resins, environmental issues and higher prices for virgin resin will contribute to growth.

Packaging is expected to be the largest market segment for recycled plastics, with sheet and lumber following. Surveys indicate that Americans are increasingly willing to collect and separate discarded packages, foregoing a degree of convenience to make products more disposable, and even paying a premium for a recycled item.

Increasingly, communities are refusing to consider incineration until every effort is made first to recycle; public sentiment is strongly in favor of products that can be recycled or are made of recycled materials.  In recent years, the household recycling rate of PET bottles has more than doubled to 30% of all PET soft drink bottles sold.  In fact, PET’s recycling rate is the fastest growing among all beverage containers. The future of PET recycling is even brighter than it has been in the past. PET intrinsic scrap value is second only to aluminium among container materials. The plastics industry has launched a research and development program aimed at increasing PET recycling. According to the U.S. Environmental Protection Agency (EPA), plastic soft drink bottles account for approximately 2% of the solid waste discarded in America. The EPA has set a national goal to recycle 25% of the municipal solid waste stream and the industry is committed to achieving its share of that important goal. 

The recycling industry intends to accelerate the rate of plastic recycling as part of its commitment to develop solutions to the solid waste problem. Industry analysts have projected that 50% of all PET containers will be recycled by the year 2007. More plastics will be recycled annually than any other recyclable material. Replay believes a significant answer to America’s waste problem lies in creating high value, recycled thermoformable sheet and other extruded products for the packaging market.

Although more than 200 million pounds of PET post-consumer materials are collected in the western United States each year, there is presently no local cleaning and refining facility converting the bottles into resins suitable for re-manufacturing. Originally, recycled PET (RPET) was used primarily in the carpet fiber industry, which is located along the eastern seaboard. The early development of the RPET industry was therefore focused in the eastern USA, with eastern states adopting the first bottle deposit laws that resulted in collection of post-consumer bottles that can be recycled. Recently, California, Oregon and Washington have adopted bottle deposit programs, and accumulation of recyclable materials in those states has begun. With all of the cleaning and recycling plants and the majority of consumers traditionally located in the eastern part of the country, development of consumers of recycled flake and down-line products, such as film and sheet, has been slow to develop in the West. A strong demand for post-consumer bottles from Asia has prevented the buildup of inventories and reduced the pressure for the collection industry to find or develop western markets. 

There is currently no independent extrusion plant of recycled polyterephthalate (PET) sheet in the western United States or Canada that services the roll stock requirements of major custom and proprietary formers. With the development of the recycling industry for PET starting in the eastern part of the country, and the preponderance of consumers of sheet there as well, development of independent extrusion facilities using RPET has been slow to develop. It appears that in order to attract such companies, local sources of RPET would have to available. While there are customers in the West for the products, contracting a supply and shipping it from the East makes the venture unattractive.

Our founders recognize that an opportunity exists and propose a vertically integrated conversion facility that will employ state-of-the-art technologies to produce extruded sheet and high strength strapping from 100% recycled PET post-consumer bottle stock, cleaned and refined in our own facility.

4.1 Target Market Segment Strategy

The Company has chosen its target markets because recycled PET (RPET) is in high demand as flake resin by converters,  as roll stock sheet used to produce high visibility packaging and as high strength strapping for the lumber industry.  Sales are price-sensitive, so that proximity to markets and feed stock source provide a competitive edge. Replay Plastics identified an opportunity to take advantage of both circumstances in the western United States.

Total market demand is reported as 1.2 billion pounds per year. Since only 800 million pounds are processed in the USA, consumers are forced to look at wide spec virgin PET (virgin resin that is outside of spec but still usable) which is normally sold at a discount to virgin prices, but still higher than recycled (RPET) pricing. Some manufacturers are also forced to import materials from Mexico, India and South America. Some converters are being forced to use more expensive virgin resin.

The current pricing for virgin resin is $0.65-0.73 per lb. and $0.42-.53 for RPET flake.  The spread between the two has traditionally been maintained at approximately $0.20 per lb.

PET Film & Sheet

The total reported market of extruded film and sheet is 872 million pounds, of which identified industry usage of RPET is 160 million pounds.

The reported market demand (to replace virgin PS, PVC and PET) if RPET was available is estimated at 1 billion pounds.

Current pricing for RPET sheet is $0.70-0.79 per lb.

RPET Strapping

The total reported domestic plastic strapping market is 240 million pounds. Of this market, industry usage of virgin polypropylene is 132 million pounds and of PET is 108 million pounds.  

It is generally accepted in the industry that less expensive strapping made from RPET could not only take over the polypropylene strapping market, but convert as much of the much larger and more expensive steel strapping market as RPET strapping was available.

Current pricing for RPET strapping is $0.90 -1.08 per lb.

Market Segmentation

The primary market can be broken down as follows.

Consumers of PET in:

• California: 62
• Washington: 9

Consumers of HDPE in:

• California: 73
• Washington: 12

All information is based on industry research,and data provided by the American Plastics Council.

Current alternatives

Currently in the western United States, there is no direct competition for cleaning and refining post-consumer or post-industrial PET. Nor is there any non-captive extrusion of roll stock sheet.

The extruded sheet required by thermoformers is currently supplied by:

• Advance Extrusion, Becker, MN
• Kama, Pittsburgh, PA
• Plasti-Shell Packaging, Gonzales, LA
• Petco, Montreal, Canada
• Klockner, VA

In a news release dated September 10, 2004, Itec Environmental Group, Inc. announced their intention to open a PET and High Density Polyethelene (HDPE) recycling operation in Riverbank, CA (east of San Francisco). The news release states that the Company’s new and yet unproven technology lets it work with bottle streams that others have to reject as too dirty. This Company is familiar to our Management, and is not considered a significant factor in any of our markets.

Our advantages

Replay Plastics’ competitive edge rests with its proximity to its target markets, as well as the industry knowledge, reputation and contacts of its senior management. Their many years of direct experience have led them to identify this unique opportunity and put together the technology and sources to take advantage of it. Their reputation in the specific market segment will result in the achievement of long-term commitments for our production. The biggest competitive edge is we have consumers who have promised to buy all the product that we produce. 

Keys to Success

Keys to Success: 

• Secure Supply- Contract for supply of post-consumer bottles and post-industrial manufacturing waste for PET raw material feed stock.
• Marketing –  Contractual arrangements for the sale of virtually all initial production.
• Management – Strong senior management with extensive, broad-based, industry-specific experience.

1.4 Potential Risks

Unavailable or scarce raw material feed stock for production

• Replay is confident that it has secured good availability of low cost post-consumer PET bottles (feed stock) derived from post-consumer beverage bottles from California based recycling collectors, and has back up sources identified.

Technology employed may be unreliable or unproven

• Replay will use a proven, patented technology that was developed by one of its principals for the cleaning and recycling phase. The extrusion division will employ commercially proven technology – the industry is employing unique recycled PET technology which is used by prominent eastern U.S. manufacturers of PET extrusions.

There may not be a market for the Company’s products

• The Industry-wide experience of the Management Team has allowed them to identify markets for the Company’s products. Their expertise and reputations have allowed them to obtain commitments for virtually all of the planned initial production. 

The location may not be near enough to markets

• The markets that have been identified are primarily in the western U.S., which will provide a distinct advantage to the Company because of freight costs and delivery timing.

The Company may not be able to attract top management  

• The Company has assembled a world class management team with proven ability and direct experience in the Company’s market segments.

Company may not meet environmental standards

• This environmentally-favorable venture provides for the development of technically feasible and economically viable solutions to PET plastic beverage bottle recycling, as well as environmentally aware in-house re-use practices which filter and return nearly all of the process water to the production lines.

The Company may not be able to sell all of its production capability

• Through the Senior Management’s industry-wide contacts, the Company has identified potential customers and received commitments for all of the production potential of the initial facility.    

Marketing & Sales

Marketing plan.

The Company has chosen to focus on the production of plastic packaging materials from recycled post-consumer beverage bottles. Because of the industry experience and expertise of the management, we have identified a significant available market in the western United States. All of our initial marketing strategy will be to secure contracts in that segment, and after reaching full planned capacity, look to grow in concert with that segment and related markets. We see little need at present for further market research and development, and will focus on continually updating our production technology in an effort to remain in the forefront of our chosen marketplace.

Because of the unique extensive experience and reputation of our Management in the Company’s chosen industry segment, we are able to identify all of the potential customers for each of the products we will produce in our facility. While most of the production of flake is ultimately intended to be used internally, we are confident that any developed surplus will be sold immediately.

All of the production of the initial facility is committed for, and should there be any capacity not consumed by these commitments, once again we are confident that the contacts of our senior management will allow for the rapid sale of any such capacity.

If the Company grows faster than its prime customer base, additional capacity may be developed. Mr. Braddock’s many years of sales and sales development will be utilized to identify additional customers and/or sales agents currently servicing the Company’s target markets.

To market the products, the Company will use a number of sales agents/brokers well known to the founders from business transactions over more than 10 years. All of these seasoned veterans have a customer base of their own, having developed successful relationships with their clientele over the years. Their customer base is currently demanding product so they can expand upon their current base. Of course, they will expand that to new customers when product is available from Replay. Those agents are located in:

Jacksonville, Florida

Houston, Texas

Chicago, Illinois

Louisville, Kentucky

Los Angeles, California

Vancouver, British Columbia

As stated, Ben Braddock, himself, is a strong marketing individual. Over his 30 years of experience in the packaging and converting industry he has developed relationships with a number of clients that are buyers of packaging materials.  He has consulted to many and has been personally responsible for sourcing raw materials and converted sheet for customers in this industry.

Custom formers, extruders, laminators, and end user markets will be called upon by Ben and the sales agent team to promote and generate demand from those that buy and use RPET packaging materials.

Locations & Facilities

The Company will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division.

Recycling Division

Using a patented process, the Company will create a PET cleaning and refining plant located in the western United States; we have chosen this region because all 16 major North American PET recycling plants are currently located in the eastern United States or Canada, despite western states’ favorable recycling attitudes among consumers. Its initial annual capacity will be 46 million pounds and it will utilize bottle feed stock from California, Oregon and Washington States, which collect over 200,000,000 pounds per year. The Company will become totally vertically integrated, and use all or almost all of its recycled material in its Packaging Division.  Any surplus material produced will be sold to outside companies.

Packaging Division

We will create a plant (actual facilities to be shared with the Recycling Division) to manufacture extruded plastic roll stock sheet or high-strength strapping, employing state-of-the-art technology developed to utilize recycled PET resin.

The extruded sheet will be primarily sold to thermoformers who will convert it into high visibility packaging, as well as laminators and fabricators. The strapping will be sold to commercial users for use as package or pallet strapping.

Sam McGuire, a key member of our Management team, is one of the original innovators of cleaning and refining technology for post-consumer PET, and we will be utilizing his patented process in our recycling facility. Sam has worked in the establishment and operation of facilities employing similar technologies over the last several years.

On the manufacturing side, Management has been an integral part of the advancement of industry practices over the last twenty years or so, and includes in their knowledge base most, if not all, of the state-of-the-art available equipment and manufacturing techniques.

Milestones & Metrics

Milestones table, key metrics.

Key metrics: 

• Keep a close eye on supplies and suppliers. We need to operate at capacity at all times 
• tweets and retweets of our customers 
• # of customers 
• inventory turnover 
• best selling products and requests 
• very close eye on favorite products 

Ownership & Structure

Replay Plastics is owned by the initial founders, B. Braddock, S. McGuire and C. Smith, who are the proposed three executives of the operating entity. The plan was conceived and developed by these individuals, with the intent to apply their extensive experience and contacts in the industry to building a successful profitable corporation.

Management team

Ben Braddock, President and CEO,  has a 30-year history of experience encompassing all aspects of Polymer Raw Material, Plastic Conversion Methods, and Venture Development. He founded Company C, a multi-cavity plastic injection molder container facility, and Company D, a solid phase pressure forming polypropylene (PP) food container facility. He also assisted in the launch of five plastic converting manufacturing plants.

For the last fifteen years Ben has been an independent consultant in the plastics industry. His clients have included  [proprietary and confidential information removed].

Sam McGuire, Executive VP and COO, is a graduate engineer with over 20 years experience in the post-consumer plastics recycling industry and is the inventor of the primary recycling technology used in the process for this project. He has received a patent for his recycling technologies and has been directly involved in over twenty-five major post consumer plastics recycling  projects. Sam has played a major role in the design and manufacture of specific recycling equipment as well as playing a key management role in the design, construction, installation, commissioning and operation of several independent recycling businesses.

In 1998, Sam sold his interests in a medical waste treatment and plastics recycling business to a public company (Company A) based in Chicago. Since that time he has served as Vice President, International Business Development and Engineering for this Company. His primary responsibilities over the past five years have included: the rollout of the corporate business model to international countries; the licensing of intellectual property to joint venture companies; managing the design and construction of medical waste treatment and plastics recycling facilities and continuing business and technical support to the resulting joint venture businesses throughout the world.

In the past five years, Sam has successfully completed projects in Brazil, Argentina, South Africa, Japan and Australia totaling over $100 Million in investment.

Carl R. Smith,  CFO, has over 30 years of investment, merchant banking and management experience. He has assisted in raising over $500 million and served as board member and/or officer in over 40 public and private companies.

Carl is the former CEO of E Corporation, Ltd.,  a company manufacturing plastic injection molded products. Prior to 1993 he was a partner in two independent investment banking firms, Company F and Company G. During his time at Company G, more than $450 million was raised for client companies, and the assets grew to $50 million. Prior to forming Company G, Carl was a principal and manager of several operating companies in industries such as plastics, mining and oil and gas exploration.

Financial Plan investor-ready personnel plan .">

Key assumptions.

Key Assumptions: 

• Replay has allowed for 30 days to collect receivables due to knowledge and experience with customers in the industry.
• Inventory turnover is predicted at 12 times, which is extremely conservative.
• The personnel burden includes contribution by the Company to employee health care.
• We have allowed for Accounts Receivable financing of 70% at an interest rate of 12% per annum. 
• It is assumed that additional extrusion lines will be added in the second year, with down payments of 33% at time of order and balance paid at time of shipment (see Cash Flow for details). These will be purchased as long-term assets out of the cash flows of the business.
• General annual growth rates of 5% have been assumed on all sales prices and material and labor costs.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Our start-up expenses are budgeted at $210,000, which is mostly for on-site contractor services during facility preparation. $50,000 has been set aside for legal and accounting, $25,000 for special consulting that may be required during start up and $50,000 each for local engineering and lab equipment and supplies. $30,000 has been set aside as a contingency for the start up period.

Our largest Start-up Requirement is the building of the recycling and extrusion facility. Its final value at completion is listed below as a long-term asset of $3,620,000 (excluding expensed items like consultants and engineering listed above). Aside from the building itself, we need $25,000 in machinery and fixtures, $500,000 of inventory (plastic bottle feed stock) and cash to cover us through the initial year.

Start-up Expenses

Legal & Accounting $50,000

Stationery etc. $5,000

Consultants $25,000

Lab Equipment $50,000

Local Engineering $50,000

Misc Start up $30,000

TOTAL START-UP EXPENSES $210,000

Sources of Funds

We will get a $800,000 dollar loan against our 3 million dollars of assets. Our Founders will put up a total of $1.5 million dollars. We will also have a group of VC investors that will put up the 2.7 million dollars. This will give replay plastics the 4.2 million that it needs to start. 

Projected Profit and Loss

Projected balance sheet, projected cash flow statement.

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