Summary

This is a dedicated plastic recycling company. The extruders can handle various grades of plastic. Raw materials are sourced from businesses that manufacture plastic products using virgin materials. Consequently, their recycling process does not require a wash plant, as the input materials are already clean. As a result, their finished products are of consistently high quality.

Give me more information

Fully describe the business's activities?

This is a dedicated plastic recycling company, specialising in the processing of low-density (LD) and high-density (HD) polyethylene plastics. While the machinery can handle various grades of plastic, their focus remains on these two types to minimize the risk of contamination. The company operates two extruders and consistently processes between 100 and 120 tons of material each month.

Raw materials are sourced from businesses that manufacture plastic products using virgin materials. Consequently, their recycling process does not require a wash plant, as the input materials are already clean.

As a result, their finished products are of consistently high quality. This is known as First-Generation plastic in the industry and is highly desirable throughout the industry.

How does the business operate on a daily basis?

The business operates continuously, with 12-hour shifts scheduled from Monday through Saturday beginning at 06:00.
Overtime is typically available at weekends for employees who work the Saturday, day shift or the night shift extending into Sunday morning.

What Advertising/Marketing is carried out?

They don't need to advertise as their reputation in the industry is strong.
Word of mouth is their best advertising.

What competition exists?

As in most industries, competition exists within the recycling sector. They do not operate within a niche market; however, through dedication and consistent effort, they have achieved sustained success in this field.
The quality of their finished products is what sets them apart from their competition.

How could the profitability of the business be improved?

Profitability can be improved by buying more efficient machines.
There is always scrap plastic available. Although the size of the premises does not allow for much expansion, the owner has rented 600m2 additional storage space nearby, on a 12-month short-term lease, commencing with effect from November 2025.

Give a breakdown of staff/ functions/ length of service?

1 x Lady general office work (permanent)
1 x Factory manager (temporary)
8 x machine operators (permanent)
4 x bailer operators (temporary)
8 material sorters all ladies (7 permanent, 1 temporary)
2 x code 10 drivers (permanent)
2 x assistant drivers (temporary)
1 x forklift driver (currently temporary – on probation)
1 x general foreman
1 x general maintenance and electrician.
4 x general laborers (temporary)

All permanent staff are on the company pension fund.

Do any have management potential?

How involved is the Owner in running the business?

The owners are involved full time

When does the current lease end?

The property is owned by a related Close Corporation, which obviated the need for a Lease Agreement.
However, a nominal rent of R25 000 per month has been factored in as an expense.

What are the trading hours?

Day shift runs from Monday to Thursday, 06:30 to 16:30, and runs from 06:30 to 14:00 on Friday.
Night shift operates from Monday to Sunday, 16:30 to 06:30 as and when required.

What are the main assets of the business?

A complete asset register is available to serious buyers.
The company’s assets include a range of grinders, crushing machines, bailers, surface grinders, and a fully equipped workshop. They also keep additional barrels and screws for their extruders.

Strengths?

The business has an established presence in the plastics industry and is well known. They hold contracts with multiple clients and provide collection bins at various sites to keep them clean. The focus on recycling ensures ongoing demand for their services.

Weaknesses?

Current premises do not have space for much more expansion.

Opportunities?

Opportunities in the recycling business are broad, with potential to expand into plastics, cardboard, and wastepaper products.

Threats?

Competition is the main challenge for this business, but their product stands out due to its quality. They use only post-manufacture materials, not post-consumer, so there is no need for washing like some recyclers. Their end-product, made from first-generation material, is exceptionally clean and suitable for use as virgin material.