By Karen Hanna
For at least two companies that supply raw materials to plastics processors, the promise of a pricing edge that helps mitigate rising materials costs has proven a strong selling point.
Larry Welnowski is the owner and operator of Nickel City Polymers, a distributor that deals in resin on the secondary market. In March, he said business has been brisk.
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“We purchase obsolete inventory from companies, which helps them clear out warehouse space and recover some of the cost from the original purchase of the resin. Then, we sell this resin to other companies who can use it, all while saving them a little bit of money.”
Over the past year and a half, Jared Arbeter, director of sales for Riverdale Global, said demand for his company’s products — liquid colorants that provide a cost-effective alternative to masterbatches — also has gone up.
Dosed by systems created by Maguire, a sister company of Riverdale, liquid colorants go further than masterbatches, Arbeter explained.
“Liquid colorant can provide significant savings in coloring cost for their products through lower let-down rates. Liquid color disperses much better than masterbatch, so less pigment and carrier is required to color a part. Our usage rates are typically a quarter to a half of the usage rates of masterbatch while producing the same color with even better dispersion,” Arbeter said.
Because liquid colorants don’t require resin to serve as a carrier, buyers also are insulated from resin shortages that would affect masterbatches. In addition, changeovers involving liquid colorants are easier, leading to less scrap and less wasted resin, Arbeter said.
Nickel City Polymers, which sells commodity and engineering-grade resins, also is looking to save its customers money.
Purchasers of its nylon and acetal resins — the company’s specialty — typically can save 20 to 30 percent, Welnowski said. Volumes range from 500 pounds to truckloads.
One recent purchaser is a maker of lobster traps, Welnowski said.
“We have new companies contacting us every day,” he said. “This is due to short supply and increased prices. We help companies on both ends. My advice for processors would be to stay in touch with the secondary market and companies like us who often have availability of a wide variety of virgin resin.”
Karen Hanna, senior staff reporter
Contact:
Maguire Products, Aston, Pa., 610-459-4300, www.maguire.com
Nickel City Polymers Inc., Buffalo, N.Y., 716-903-5347, www.nickelcitypolymers.com
Riverdale Global LLC, Aston, Pa., 610‑358‑2900, www.riverdaleglobal.com
