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Non-Tech : RECY Looking Good... A -- Ignore unavailable to you. Want to Upgrade?

To: SFJayhawk who wrote (4230)	3/4/1998 8:10:00 AM
From: Brewmeister	Respond to of 7006

Alan, Excellent point on electricity deregulation. Even now, utilities have established marketing groups to go after large industrial customers outside of their typical distribution region. The home utility has the same group, both to go after share and defend share. The end result is significant reductions in electricity cost for the larger industrial customers. Of course, this is mostly unrelated to RECY growth except that it might give them a bit more power to negotiate a lower cost in a given region. As for other costs, I would think RECY could save in selling expenses, administration expense (as they get all facilities up and running on the same Info. system), lower scrap costs through increased purchasing power, lower operational costs through improved processes ( they take the best of each facility and apply it across the board), reduced transportation, lower maintenance cost (a big item as shredders consume themselves from what I understand) as they consolidate buying anmaintenance practices. In each area, there may only be small gains, but add it all up and it could be substantial relative to current margins. of course, IMHO Dan