Rumpke Consolidated Companies Inc. will receive $32 million in financing from the state of Ohio for a new recycling plant in Cincinnati to replace the one severely damaged by fire in April.
The new facility will process 55 tons per hour of residential recycling and 20 tons per hour of commercial material, the Ohio Air Quality Development Authority (OAQDA) said in a news release. The plant will cover 84,000 square feet and employ 110.
Construction for the new facility will begin this month, and it is scheduled for completion in October 2013. Equipment will include six optical scanners, two eddy-current separators, an electromagnet and a mixed-glass removal system.
OAQDA authorized the issue and sale of up to $32 million in exempt facility revenue bonds. It is its first federally tax-exempt financing for a recycling facility.
“This creative financing package will allow Rumpke Recycling to install a state-of-the-art facility that will operate with maximum efficiency and retain our regional capacity at optimal levels,” said Phil Wehrman, chief financial officer for Rumpke.
“Many of the materials to be recycled by this new facility contain substances that ultimately could release air contaminants if placed in landfills,” said Todd Nein, OAQDA interim executive director. “Such projects enable us to achieve our mission of keeping Ohio’s air as clean as possible.”
The fire at the old facility in St. Bernard, Ohio, in April caused severe damage to about two-thirds of the operation. It was Rumpke’s largest material recovery facility (MRF).