FOR IMMEDIATE RELEASE
Ohio recycler Grace Plastics adding South Carolina plant
By Mike Verespej | PLASTICS NEWS STAFF
Posted April 18, 2012
BATAVIA, OHIO (April 18, 4:40 p.m. ET) -- Industrial plastics recycler Grace Plastics Inc. is opening up a plant in Simpsonville, S.C., that will be its first recycling plant outside of its headquarters location of Batavia, Ohio.
“We are pretty much set up to grind and should be doing that sometime next week” after the electricity is hooked up, said President Harold Johnson in a phone interview April 18. “We just brought in four truckloads of scrap today.”
Johnson expects the plant will use a lot of mixed automotive plastics.
“I fully expect that within six months, we’ll be pushing out close to 1 million pounds of regrind a month at that plant”—which is what he said the company currently produces at its 60,000 square foot plant in Batavia.
Johnson said Grace just moved an existing grinder, shredder and air wash system into the 60,000 square foot building in Simpsonville that it plans to eventually fully occupy. “We set it up Monday and brought in some conveyors and other needed equipment on Tuesday,” he said.
The decision to open a plant in Greenville County made sense from both an economic and logistics standpoint, Johnson said. Grace was shipping 10 truckloads of material/ month—at a cost of $800 per truckload—from three customers in upstate North Carolina to its plant in Batavia, which has two shredder/grinder lines.
“We decided to expand about six months ago, and felt that if we were going to expand it should be in the upstate region of South Carolina” near existing customers, said Johnson. “We felt that it was a prime region to move into.”
“The South Carolina facility will give us the opportunity to reach new customers in the Southeast [and] grow our overall operations,” he said. "We have a good potential of bringing on other companies in the area.”
Johnson said Grace is currently leasing 15,000 square feet of the 60,000 square foot facility in Simpsonville, and the current plan is to lease an additional 15,000 square feet every quarter—or sooner if needed. He also said Grace has an agreement in place to purchase the building for $825,000 in the next nine months.
“I anticipate that with this new plant, we will pretty much double the amount of regrind we produce monthly,” Johnson said.
Initially, the plant represents a small investment—the cost of the lease, and the cost to move approximately $50,000 of existing equipment and install it in the plant in Simpsonville, Johnson said.
But Johnson said the company plans to add more equipment to the South Carolina plant “within the next 12 months.”
“We are probably going to add two smaller grinders at a cost of $200,000 and a $40,000 sort line to separate out materials that would otherwise be going to China in mixed bales,” Johnson said.
He said the new plant could employ anywhere from 10-15 people once the additional equipment and sort line are added. “We’re excited about South Carolina,” said Johnson. “The business climate is very friendly and we’ll be adding jobs.”
Johnson said Grace, in both of its locations, recycles mostly polypropylene, but also recycles polystyrene, nylon, polycarbonate, PC/ABS and both high and low density polyethylene.
Grace offers a range of services including spotting trailers; shredding and grinding of purge, parts and baled plastics; as well as sorting partially assembled components, breaking them down and grinding.
Last modified: 09/11/12