USRI News .095 USA RECYCLING INDUSTRIES INC Symbo

USRI News .095 USA RECYCLING INDUSTRIES INC
Symbol U : USRI
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USA Recycling Industries Signs Letter of Intent to Expand Used Oil Filter Recycling Operations

2012-06-06 09:15 ET - News Release

READING, PA -- (Marketwire) -- 06/06/12

USA Recycling Industries, Inc. (PINKSHEETS: USRI), a Pennsylvania-based scrap metals recycler providing specialty recycling services throughout North America, announces it has signed a letter of intent (LOI) to purchase 51% of the stock of Lucas Lane, Inc., a Pennsylvania-based recycler of used oil filters.

Each year the U.S. generates 425 million used automotive oil filters containing 160,000 tons of iron units and 18 million gallons of oil. Recycling all the filters sold annually in the United States would result in the recovery of about 160,000 tons of steel. Given the potential market opportunity, the LOI with Lucas Oil provides for a strategic bolt-on acquisition and new opportunities for growth.

USA Recycling Industries CEO Vincent J. Smith stated, "Based on the number of oil filters used every year in this country, we believe that the addition of the collection and disposal of used oil filters is a lucrative opportunity that will add significant revenue to the Company's operations in the near term. The Lucas Lane LOI, combined with our direct end-user-consumer relationships with used motor oil re-refiners, solidifies our competitive advantage."