The New Providence, N.J.-based Axion said it established a new subsidiary, Axion Recycled Plastics Inc., according to a news release. Key members of the management team of Y City, based in Zanesville, Ohio, have been hired by Axion Recycled Plastics. Axion acquired the assets through the assumption of bank debt.
The Zanesville facility generated about $2 million in revenue July through September of this year. Axion expects revenues to increase to between $4 million and $5 million in 2014.
Axion recycles plastic and uses to plastic composite technologies to produce Ecotrax rail ties and Struxure building products.
Axion Recycled Plastics will continue to serve regional customers from its Zanesville facility, and establish and expand the recycling capabilities at its Waco, Texas, facility to serve new customers in Texas and surrounding states, as well as provide raw materials internally for the company to produce Ecotrax and Struxure.
"This acquisition creates value for Axion in three key ways,” said Steve Silverman, Axion president and CEO. “First, it gives us added revenue. Second, it eliminates steps in our material supply chain, thereby stabilizing our raw material costs. Third, it enhances our quality control as we now process our own material for production."