ARCA Recycling, Inc., a wholly owned subsidiary of Appliance Recycling
Centers of America, Inc. (NASDAQ: ARCI), is successfully adapting to
trends impacting the recycling of appliances and consumer electronics by
negotiating contracts with utilities and manufacturers that reflect the
industry’s changing landscape, notably the sharp decline in scrap metal
prices.
Scrap steel prices have fallen 22 percent the past year and are down 57
percent over the last two years. Nonferrous metals have had similar
price declines. U.S. steel imports have dramatically increased over the
past year and the European Union recently launched new probes into
Chinese steel imports, claiming unfair competition. The American Iron
and Steel Institute called on the U.S. Government to “address injurious
import surges.”
“We’ve become less reliant on scrap metal revenue by adjusting our
utility contracts and raising our pricing over the past six months,”
said Edward R. (Jack) Cameron, ARCA Recycling’s President. “We’ve been
very busy with new utility contracts, as we announced last month.”
Cameron added, “Utilities, manufacturers, retailers and consumers are
all realizing the landscape has changed dramatically, evidenced by many
private and public recycling programs struggling financially. Sharing
costs ensures the long-term viability of a recycling market that
delivers important environmental benefits.”
For the recycling of every 1,000 refrigerators that were more than 20
years old, the EPA estimates more than $800,000 in benefits through
lower energy consumption and fewer harmful emissions.
ApplianceSmart, ARCA’s retail arm, was the first independent retailer to
join the EPA’s Responsible Appliance Disposal (RAD) Program, which
launched ten years ago. National appliance retailers Home Depot, Best
Buy and Sears – also RAD members – have recently started charging fees
for recycling TVs, monitor and select appliances. Industry trade media
expect more fee-based recycling initiatives going forward as a more
sustainable business model is developed.
ARCA has nearly 40 years of leadership in appliance recycling, including
regional processing centers across the U.S. and state-of-the-art
technology that removes environmentally damaging substances and produces
byproducts for recycling.
About ARCA
ARCA's three business components are
uniquely positioned in the industry to work together to provide a full
array of appliance-related services. ARCA Advanced Processing, LLC
employs advanced technology to refine traditional appliance recycling
techniques to achieve optimal revenue-generating and environmental
benefits. ARCA (www.ARCAInc.com)
is also the exclusive North American distributor for UNTHA Recycling
Technology (URT), one of the world's leading manufacturers of
technologically advanced refrigerator recycling systems and recycling
facilities for electrical household appliances and electronic scrap.
ARCA's regional centers process appliances at end of life to remove
environmentally damaging substances and produce material byproducts for
recycling for utilities in the U.S. and Canada. Eighteen company-owned
stores under the name ApplianceSmart, Inc.® (www.ApplianceSmart.com)
sell new appliances directly to consumers and provide affordable ENERGY
STAR® options for energy efficiency appliance
replacement programs.
This press release contains statements that are forward-looking
statements as defined within the Private Securities Litigation Reform
Act of 1995, including statements regarding ARCA's future success. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from the statements
made, including the risks associated with general economic conditions,
competition in the retail and recycling industries and regulatory risks.
Other factors that could cause operating and financial results to differ
are described in ARCA's periodic reports filed with the Securities and
Exchange Commission. Other risks may be detailed from time to time in
reports to be filed with the SEC.
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