AXION International Holdings, Inc., a leader in recycled plastic and plastic composite, has announced its subsidiary, AXION Recycled Plastics Incorporated, has signed a three-year $42-million contract to provide recycled materials to a major thermoplastics company.
The customer, which remains unnamed, is one of the largest heavy gauge thermoformers in the U.S. The company has agreed to purchase High Molecular Weight High Density Polyethylene (HDPE HMW) in monthly volume commitments from AXION Recycled Plastics. The contract is renewable in 12-month increments.
“In such a short period, we have demonstrated immediate success for our newly-launched subsidiary, AXION Recycled Plastics,” stated AXION President and CEO Steve Silverman in a December 2013 statement. “In addition, the vertical integration of our operations enable an increased capacity to support our customers’ needs,” he added. “This contract strengthens our presence as a provider of reprocessed plastics and we anticipate receiving more contracts.”
AXION Recycled Plastics is a newly established subsidiary of AXION International Holdings, Inc., and positions the company as a major recycled materials processor and supplier in the Midwest and Southwest US.
AXION Recycled Plastics will manufacture the HMW pellet tailoring the material specifically to meet the customer’s specifications. There will be a return loop for packaging in place in a conscious effort to reuse in addition to recycling.