SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Hudson Technologies HDSN
HDSN 9.070-1.3%Oct 31 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: rustyjack who wrote ()8/31/1997 10:40:00 PM
From: rustyjack   of 108
 
Well, we're back where we started the year.

Reclamation market is exploding; this 'beast' is riding the wave.
(ZugiBeast refrigerant reclamation system of Hudson Technologies
Inc.)

HILLBURN, N.Y. - Refrigerant reclamation is "an oily, dirty business" - and
right now it's "exploding," according to Kevin Zugibe, president, founder, and
ceo of Hudson Technologies, Inc., and inventor of a patented, portable
site-reclaim unit, the "ZugiBeast."

"Four years ago, the reclaim market was incredibly slow," Zugibe recalls. Now
it's constantly growing among all the reclaimers, he says.

For example, in 1992, he says HTI may have reclaimed a total of 30,000 lb of
refrigerant. In 1994, the figures leapt into hundreds of thousands of pounds." By
2000, the incoming amount "may be five times' this size," he estimates.

The market itself has grown. Part of this can be attributed to the education all
reclaimers have offered, on the cost and ecological benefits of
recovery-reclaim. The driving force for his company, Zugibe says, is its ability
to offer site recovery, reclaim, and test services.

Zugibe founded the company in 1991 as Refrigerant Reclamation Industries.
Like many, he saw reclamation as a profitable opening.

Part of his opportunity was a race to develop a faster system that would meet
ARI 700 purity levels. Since achieving this, he's concentrated on further
developing the technology. Several patents are pending.

In January 1995, HTI was awarded a U.S. patent for ZugiBeast, said to be
capable of simultaneously recovering and reclaiming refrigerants at speeds of
6,000 lb per hour. The patent covers six claims on the components and
process.

"We've increased our manufacturing of the machines to meet the growing
demand of our customers," Zugibe says. The company does not plan to offer
the system for sale, and will use it solely for its business: on-site reclamation,
and on-site and lab testing, of contaminated refrigerants, plus refrigerant
banking, cylinder pick-up and drop-off, etc.

The system fits through standard doorways, allowing large volumes of
refrigerant to be reclaimed on-site, reducing system downtime and customer
interruptions. On-site testing verifies ARI 700-93 purity.

"We should be in a very good position to win the largest of contracts," says
Zugibe. "The speed at which we do on-site reclamation is really quite
palatable."

One such job involved chillers at the MetLife building in New York. Chiller
access was on the 57th floor. ZugiBeast and crew simply rode up an elevator
and, three hours later, had reclaimed 8,000 lb of refrigerant.

That's not to say that the company only works with large customers. Cylinders
come in from a variety of sources; a lot of 30- and 50-lb cylinders come from
wholesalers who get the refrigerant from residential and light commercial
contractors. Still more comes directly from large contractors.

With this amount of refrigerant moving, what kind of condition is it coming in?
According to Zugibe, about 75% is contaminated with other refrigerants.

In a way, increased contamination indicates increased compliance with the
stipulations of the Clean Air Act. "The more recycling goes on, the more
recovery, and the more cross-contamination," he says.

Most contamination occurs at the residential-light commercial level, he
speculates. "It's easier to cross-contaminate smaller systems.

"I understand what's going on," he continues. Technicians are jumping from one
system to the next, meaning to evacuate hoses entirely while being pressed for
time; "It's tough out there."

Moreover, check valves at the end of the hose, which have become popular on
some recovery units, keep refrigerant from escaping; however, they add to the
risk of cross-contamination.

On the whole, Zugibe says, "I think they [contractors and service technicians!
are doing a good job, based on the amount of refrigerant we're seeing."

To meet this growing market, HTI is working on refrigerant separation
technologies - as are many other companies.

We can separate R-11 from -12," Zugibe says. "We're trying to bring in the
range of 12 and 22, 502 and 22," and other less-common refrigerants. "We've
come to the conclusion on how to do it," he says.

Thus far, the design team has included Zugibe, his engineers, and seasoned
refrigeration mechanics whose practical field experience frequently prompts
them to say, "Kevin, I have a better idea for you."

With the rest of the company growing, the need for qualified staff has swelled,
too. With expansions in Florida and Illinois, the number of employees has
reached 41.

According its inventor, ZugiBeast's technology precludes anyone being able to
hire in and start operating the system. No matter if you come from an
engineering school or refrigeration field service, training is necessary.

"It's a specialized area," Zugibe says. "An engineer couldn't do this; a mechanic
couldn't do this. What you really need is a good refrigeration mechanic and
teach him engineering."

This is precisely what the company does. Basic refrigeration and engineering
courses are taught in-house, to veteran refrigeration mechanics and
rookie-status new-hires from vocational and trade schools.

Within the last six months, HTI has:

* Reached a multi-year agreement with NYNEX Corp., to provide full
refrigerant and reclamation services to the telecommunications company for a
period of at least three years.

Under the agreement, HTI will provide full refrigerant recovery and reclamation
services for NYNEX in New York, Vermont, Rhode Island, Massachusetts,
and Maine. With numerous facilities involved, many operating with different
refrigerants at various levels of purity, the company was unable to release a
specific value for the agreement, but over the course of the three years, it is
expected to have a significant effect on company revenues.

In addition, the company will provide refrigerant banking of all NYNEX'
refrigerants, as well as full services for NYNEX' extensive supply of Halon.

* Opened a 33,000-sq-ft refrigerant reclamation and packaging facility in Port
Everglades, Fla., the first of its planned expansions across the U.S.

In addition to its core business of refrigerant recovery and reclamation, the
company also will package more than 200,000 lb of reclaimed refrigerant per
month for re-sale at the Florida site.

* Acquired CFC Reclamation of Champaign, Ill. This purchase tells "another
story of a good reclaimer that didn't see the volume," Zugibe says.

HTI will operate from CFC Reclamation's existing facilities, located
approximately 100 miles south of Chicago. In addition, Hudson Technologies
will utilize CFC Reclamation's fully equipped laboratory, refrigerant inventory,
supplies, and EPA-certified refrigerant technicians.

As part of the deal, CFC Reclamation owner Jim Spencer will serve as on-site
facility manager. And, all current CFC Reclamation employees will be offered
positions with HTI.

Is Zugibe afraid that the company is growing too fast? Just a little, "And it's a
good fear," he says. In order to take advantage of opportunities, "You have to
step to the next point quickly."

COPYRIGHT 1995 Business News Publishing Company

COPYRIGHT 1995 Information Access Company

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext