Green technology company Axion International Holdings Inc., in New Providence, announced today it has initiated operations of its new subsidiary, AXION Recycled Plastics Inc.
According to the announcement, on November 15 Axion purchased assets previously used by Ohio-based Y City Recycling, which will contribute to the company's consolidated operations and revenues beginning with the fourth quarter of 2013. Key employees and members of Y City Recycling's management team have been hired by Axion Recycled Plastics.
The Zanesville facility generated approximately $2 million in revenues between July and September 2013. Management anticipates quarterly revenues potentially ramping up to $4 to $5 million in 2014 for Axion Recycled Plastics. Axion acquired the assets by the assumption of bank debt, the company said in a statement.
In its release, the company said three of its largest investors made a $3 million capital infusion for the repayment of certain liabilities, for the future purchase and maintenance of equipment needed for increasing capacity, and for working capital. An additional $2.5 million revolving credit facility which includes the availability of letters of credit has been put in place.