Dive Brief:
- ARCA Recycling Inc., a Minneapolis-based subsidiary of Appliance Recycling Centers of America, Inc.. has been awarded contracts to manage utilities' appliance recycling programs in Delaware, Georgia, New Mexico, Maryland, and Virginia, assuming operations in the second quarter of 2016.
- The company—which specializes in recycling appliances and consumer electronics—latched onto some of these contracts after providing short-term support to utilities impacted by the closing of Mill Creek, WA-based appliance recycler Jaco Environmental Inc., in November 2015.
- ARCA Recycling has been shifting its focus from scrap metal recycling to negotiating utility contracts for the past two years.
Dive Insight:
"We’re pleased to help utilities and their customers who were inconvenienced by disruptions to their programs," said ARCA Recycling President Edward R. (Jack) Cameron in a statement. "Since late last year we have been experiencing strong momentum and interest from utilities."
The company’s strategic move away from scrap metal has been a way to stay financially healthy through weak trends in recycling, particularly the continued down turn in scrap metal’s return. Thus the focus on generating business from utilities and manufacturers.
"We’ve become less reliant on scrap metal revenue by adjusting our utility contracts, and raising our pricing over the past six months," said Cameron. "We’ve been very busy with new utility contracts."
The company continues to focus on diversity, working to boost its brand as a specialist in mitigating potentially hazardous wastes, including through its participation in EPA's Responsible Appliance Disposal (RAD) program. ARCA has also branched out into more appliance-related services, focusing on enhanced recycling technology.
