NEW PROVIDENCE, N.J., Dec. 3, 2013 /PRNewswire/ -- In a major deal adding $42 million of new revenues, AXION International Holdings, Inc. (OTCBB:AXIH), a leader in recycled plastic and plastic composite, today announced that its subsidiary, AXION Recycled Plastics Incorporated, signed a 3-year contract to provide recycled materials to a major thermoplastics company. This development reinforces the Company's business strategy of its recently purchased assets and related launch as a recycled materials processor and supplier. The contract is renewable in 12-month increments.
The customer, one of the largest heavy gauge thermoformers in the U.S., has agreed to purchase High Molecular Weight High Density Polyethylene (HDPE HMW) in monthly volume commitments from AXION Recycled Plastics.
"In such a short period, we have demonstrated immediate success for our newly launched subsidiary, AXION Recycled Plastics," stated AXION President and CEO Steve Silverman. "In addition, the vertical integration of our operations enable an increased capacity to support our customers' needs. This contract strengthens our presence as a provider of reprocessed plastics and we anticipate receiving more contracts."
AXION Recycled Plastics is a newly established subsidiary of AXION International Holdings, Inc., and positions the Company as a major recycled materials processor and supplier in the Midwest and Southwest US. AXION Recycled Plastics will manufacture the HMW pellet tailoring the material specifically to meet the customer's specifications. There will be a return loop for packaging in place in a conscious effort to reuse in addition to recycling. |
