rePlanet closes more than one-third of its California recycling centers

LOS ANGELES (Scrap Monster): The latest press release by rePlanet- California’s largest recycler states that it has closed more than one third of its recycling centers in the state on account of escalating operating costs and sustained fall in commodity prices.

As of January 31^st, 2016, rePlanet has closed 191 recycling centers, thereby leading to layoff of 278 employees. The company still has another 350 facilities in operation, employing around 800 people. It expects to continue operating these facilities as long as current market conditions prevail. Also, any change implemented by State authorities to facilitate profitable operation may prompt the company to consider reopening of the closed facilities, rePlanet noted.

According to the company, the settlement of issues surrounding California’s beverage container recycling fund is critical for successful operation of the company’s recycling program. It had several rounds meeting with CalRecycle towards resolving the issue, but no positive outcome has emerged so far. The recycling fund collects deposits for bottles and pays out only at the time of redemption of the bottles. Recycling programs receive allege that they receive less money from the fund to support their operations.

Meantime, CalRecycle official blamed falling oil prices for closure of rePlanet facilities. He noted that they closure has nothing to do with state regulations. The historical fall in oil prices have made virgin plastic much more competitive with recycled plastic. As a result, recycled plastic has lost much of its market value, Cal2Recycle noted.

rePlanet recycling centers accepts certain plastic bottles, cans & glass bottles with the CRV logo. The consumer pays California Redemption Value (CRV) deposit on the purchase of beverages with aluminum, plastic, glass, and bimetal containers which can be reimbursed when the containers are brought to a recycling center.