Consumer Returns – Ag/Flower Trays
Problem / Opportunity:
A thermoformer of HIPS agricultural trays has an internal means of recycling some of the materials it collects from growers and nurseries throughout the upper mid-west. About 50% of the material they collect is too contaminated with PET, PP, Talc PP (plus other polymers), including small amounts of dirt and rocks. Due to the wide spread shortage of polymer, they needed a solution to help offset the growing problem of both rising consumer returns, material shortage and the rising costs of HIPS resin.
Impact on Customer:
The ongoing shortage of HIPS resin was cause for increased prices and also making it difficult to fulfill orders. Recovery of HIPS at well below market price would mean the difference between servicing an ever-growing customer base or losing customers, and maintaining margins.
We approached this recovery effort as a partner where they send all materials that are too costly or too contaminated to recycle internally. This partnership effort enabled the customer to maintain needed HIPS material and also capture additional customers, while also increase sales. All recovered HIPS materials are then sent directly to them for manufacturing. As an added benefit, Butler also sources additional HIPS material and sells to this customer on a regular basis.
Today we consistently recover HIPS from this highly-complex stream that meets a purity of 99.99%+ in pellet form at a price that offers a substantial cost advantage compared to the purchase of prime resin. The manufacturer now maintains a comfortable ability to compete on the manufacturing of products and a platform to build upon for the future.
Let Butler-MacDonald create a solution for you – call us today.