The
Kansas Recycling Infrastructure has been involved in the recycling industry throughout the state of Kansas since
the turn of the century. These businesses purchase and/or accept used, rejected and scrap products and produce
a product in quality and size that is used in manufacturing (this sounds simple, but let's see how simple it really
is). First a used, rejected or scrap product must be identified as to its chemical elements, of the 105 known chemical
elements, thousands of combinations are possible. For example, plastic containers made up of different elements
that you think can be easily identified by the recycling logos and numbers placed on the base of the containers,
but there are over 30 grades of plastic containers, yet only 7 grades according to this system. There are nearly
80 grades of ferrous scrap, 40 grades of railroad ferrous scrap, 29 grades of alloy scrap and more than 120 grades
of non ferrous scrap. The Recycler through long years of experience and extensive training can frequently identify
the product by sight, but may have to rely on testing such as grinding, acids or more precise laboratory analysis
and identification at their own plants or at outside laboratories where the product is examined through the use
of X-ray fluorescent equipment such as spectrometers and spectrographs. Once the product has been identified it
must be processed for use by the manufacturer using a variety of methods that might include baling, shearing, cutting,
chopping, shredding, melting, or sweating. This requires major capital investment in processing equipment, for
example, a glass crusher which shreds glass in pieces called cullet will average $3,000. A baler can easily run
from $30,000 to $300,000, a wire shredder which takes insulated copper wire and turns it into a product called
Cobra will average $500,000, and a shredder which shreds whole automobiles into fist size nuggets can easily run
2 million dollars. Once the product is processed and at times again segregated or sized to specifications, it must
be packaged for shipment, which depending on the kind of product and the typical requirements of the consumers,
it must be packed in boxes,
bales, bundles, drums, briquettes or loose and then stored awaiting shipment by trucks and railroad cars. Now the
scrap processing and recycling facility must market this product, a product which is priced by the consumers. The
consumers may have ample supply or even be over stocked which can drive the price of the product far below the
processors actual cost. This forces the recycler to hold on to his product until the consumers supplies dwindle
or sell at a loss for cash flow. As you can imagine, our Scrap Recycling Infrastructure operates a risky business
that fluctuates with the business cycles of the basic industries that purchase our products. |