GM PG. This was one of your eye opening informative posts about 2TRG before it closed. Now that it's closed people really need to understand the importance of the deal logistically and how quickly 2TRG can ramp from 12M pounds recycled up to their capacity with existing equipment of 75M pounds!!
" $EWSI 2TRG. Why the Midwest -
I wrote this in response to why 2TRG at the end of October. For those who don't know me, I'm a 15 year veteran of the industrial recycling / EWaste sector. I work EWaste every day. I have met and have previously worked with both Martie and Susan, so I hope I can offer some perspective....
This was in response to why EWSI is doing both teaming deals and acquisitions in the Midwest.
I'd be willing to bet that I know more about this company than most. So EWSI doesn't own a facility in Timbuktu? It doesn't matter. I've been in the industry at a developmental level for over a decade. The industry has much more to do with forming the proper upstream and downstream partnerships as it does with having ten dozen physical locations at the onset. The single biggest line item in a waste hauler P&L is the transportation cost/processing facility relationship. As you put the pieces together, you need the flexibility to contract locations for processing that are in geographical reach of the materials processed. Hence all the JV's and other paper deals. You can make lots of revenue in this industry by having the correct geographical reach for the deal. As downstream partners process material, and the volume stays steady or increases, it then behooves EWSI to stock swap for the physical location.
Why choose the first deals in or near Columbus and Cincinnati? Why are these cities hubs of Distribution? Because 50% of the US population resides within 500 miles. This is ONE day of trucking. EWaste has to be consolidated and moved before it can be processed. It appears the 2TRG deal may actually have been thought out…. Who knew? "
" $EWSI 2TRG. Why the Midwest -
I wrote this in response to why 2TRG at the end of October. For those who don't know me, I'm a 15 year veteran of the industrial recycling / EWaste sector. I work EWaste every day. I have met and have previously worked with both Martie and Susan, so I hope I can offer some perspective....
This was in response to why EWSI is doing both teaming deals and acquisitions in the Midwest.
I'd be willing to bet that I know more about this company than most. So EWSI doesn't own a facility in Timbuktu? It doesn't matter. I've been in the industry at a developmental level for over a decade. The industry has much more to do with forming the proper upstream and downstream partnerships as it does with having ten dozen physical locations at the onset. The single biggest line item in a waste hauler P&L is the transportation cost/processing facility relationship. As you put the pieces together, you need the flexibility to contract locations for processing that are in geographical reach of the materials processed. Hence all the JV's and other paper deals. You can make lots of revenue in this industry by having the correct geographical reach for the deal. As downstream partners process material, and the volume stays steady or increases, it then behooves EWSI to stock swap for the physical location.
Why choose the first deals in or near Columbus and Cincinnati? Why are these cities hubs of Distribution? Because 50% of the US population resides within 500 miles. This is ONE day of trucking. EWaste has to be consolidated and moved before it can be processed. It appears the 2TRG deal may actually have been thought out…. Who knew? "
