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Upgrade Second Quality or Scrap Case Study

Ancos is a leading polymer toller.  We regularly help customers with long term commercial engagements as well as short or one time needs.  We have a full collection of polymer enhancement and material handling services that support resin producers, compounders, distributors, rotational molders, injection molders and many other customers.

One type of need that customers regularly come to Ancos for is to upgrade both small and large volumes of second quality or scrap product.  Ancos deep experience in processing and handling polymers, combined with our problem solving capabilities and high degree of flexibility make us well suited to support all types of recovery needs.  We regularly dry, blend, screen, pellet pick, de-metalize and de-dust product to upgrade it for our customers.

Types of situations you might face:

  • You have an amount of product that is not up to specifications, and thus needs to be sold as off-grade or discarded
    • Off-grade (product out of process as a result of transition from one product spec to another)
    • Collection of scraps

Solution:

  • Ancos can perform a number of processes to upgrade second quality or scrap product to first grade product that can be sold at full value
    • Dry product to meet specifications
    • Blend to homogenize product and meet specifications
  • Ancos can handle odd batch sizes and frequencies, that you are not able to process or would impact your efficiency

Value Creation:

  • Value creation per pound of product could be anywhere from 3x – 15x+ greater than the investment in marginal incremental tolling fees, depending on product and services
    • Upgrade value of product from off-grade pricing to full market prices
    • Avoid discard fees

Example Ancos Customer:

  • Customer has irregular amounts of product that are out of specification as a natural result of transitions in their operations
  • Customer sends batches of off grade product to Ancos to be dried and meet specifications
  • With Ancos processing support, customer is able to sell 100% of their product at full “prime” prices

Value creation for this customer:

  • Incremental margin saved = $600 k +
  • Tolling investment <$180k
  • Return on investment > 3.3x

Example Ancos Customer:

  • Customer has regular amount of scraps through normal course of business
  • Customer sends batches of scrap to Ancos to homogenize
  • Customer is able to use scraps and avoid disposal costs

Value creation for this customer:

  • Value created per lb. = $0.70 – $0.80
  • Return on investment > 15x

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