A Midwest plastics recycler and toll processor reached out to us with specific requirements in setting up a turn-key plastics extrusion line process on a budget. As experts in the industry, Arlington Machinery met this unique challenge.
The Challenge
To set up an extrusion line to process 3,800-4,200 lbs/hr of PS regrind into spherical shaped pellet.
This customer approached Arlington Machinery with a need to process 3,800-4,200 lbs/hr of PS pellet. The company obtained quotes for brand new equipment; however, the overall price of a new system was too high to rationalize the investment. The customer also needed a ready to go turn-key line and could not wait for a new line to be build.
Arlington’s Solution
Arlington Machinery put together a line, that included a refurbished 8” NRM Extruder including a gearbox ratio change to run the PS at the desired speed. For the motor and drive, Arlington Equipped the line with an unused 600 Hp Motor and an ABB drive. An underwater cut pellet was a main requirement for the project.
Arlington Machinery was able to source a very late model Gala 7 Pelletizer to meet this need. The new cost of the pelletizing system was over $350K, with 20 weeks lead time. Arlington was able to provide a late model, well optioned underwater system for around half of new. With the refurbished extruder, new screw and Gala Pelletizer this would save the customer over $400,000.
Value Proposition
Arlington Machinery was able to integrate the extruder, and pelletizing system into one line. The price for the refurbished 8” extruder, with new controls and motor, along with procuring the late model Gala 7 system was far below half of the new line quoted. This line would be able to reach the same amount of output as the new line.
The Arlington solution had a far better ROI and was chosen to implement.
- New Line Cost: Over $800,000 – 3,800-4,000lbs /hr
- Arlington’s Machinery’s solution: $400,000 – Average output 3,950lbs/hr PS
The Process
- Average Toll Charge: 14 cents
- Anticipated profit per pound after expenses including equipment finance: 3 cents
- 3,950 lbs/hr x 4,710 hr/year of process time (18hr per day, 260 days per year) = 18,604,500 total lbs. of pellets per year.
- 18,604,500 x 3 cents profit per pound = Less than 1-year ROI
- New Option ROI Included 20 weeks of surplus lead time – (2.2 years)
- Conclusion: Look to used and refurbished equipment to reduce your capital costs and lead time. *Based on conversations with customer results*
Learn More About Plastic Recycling Solutions and Size Reduction Equipment
With a large selection of plastic extruders and extensive industry knowledge, Arlington Plastics Machinery offers innovative solutions to meet your recycling line requirements. Let us mold your unique needs and specific goals into actionable plans, and source the machinery to make it a reality. Contact Arlington Machinery today!