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MICA or NOT - Success Story
Listing Company: 32,650 lbs. Exchanged -- $2,000 in Avoided Disposal -- $2,450 in Revenues Responding Company: $326 Savings in Raw Material Costs
Those of you who have actually exchanged materials with another company know that there are many surprises inherent to this process. Few successful exchanges are completed in the expected neat four step process: read listings, call on perfect listing, negotiate exchange, material changes hands. This issue, we are beginning a series of articles serving as case studies for successful exchanges. With each article, we will share a summary of the exchange, providing useful statistics. We will also use these case study articles to point out a good exchange practice or tool. The participants in this exchange had creative ideas for a particular material – which turned out to be something else altogether!
CWC Industries, Inc. in Cleveland, Ohio had over 40,000 lbs. in 50 lb. bags of fine powder mica. The company had used the mica as a coating thickener in the production of a puncture proof tire seal product. This product became obsolete, and though an experimental use of the material as a thickener in specialty paints proved successful, the company sold off that part of the business, leaving a large quantity of unused mica.
CWC placed a materials available listing with OMEx. After several months, JTM Products, in Solon, Ohio contacted them to see if the mica could be used as a soap based product for lubricating rubber gasket fittings of large sewer pipes. JTM requested and received a material sample.
Here's the surprise! JTM had the sample tested, finding that the material was actually a clay known as Owen Clay – not mica. The advertised description had been taken from a bag that was not representative of the bulk of the available material. However, samples of both types of materials were then tested – all of them proving useful in JTM's application. At this point, transportation and price negotiations were discussed and agreed upon.
SUMMARY: CWC successfully exchanged over 32,650 lbs. of unwanted materials, avoiding disposal costs of approximately $2,000 and receiving revenues totaling $2,450. JTM saved approximately 1 cent per pound when compared with purchasing this material through other venders. Both companies were pleased with the exchange.
EXCHANGE TIP: Testing the material to be exchanged is a sound exchange practice. Many stockpiles of potential exchange materials have been warehoused for a considerable amount of time. A change in management, conditions of storage, missing labels – these are all factors that point to a need for testing. CWC had mica, they also had Owen Clay. JTM's testing diligence saved both company's from a potential mismatch – and still there was a positive exchange outcome!
If you are interested in more information on this project or if you desire assistance with your own specific material concerns, please contact OMEx technical assistant, Steve Shew at 888/718-OMEx (6639), ext. 7661.
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Office of Compliance Assistance and Pollution Prevention Ohio Environmental Protection Agency P.O. Box 1049 Columbus, Ohio 43216-1049 Phone (614) 644-3469 Fax (614) 644-2807 Toll Free (800) 329-7518 E-Mail: p2mail@epa.state.oh.us
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