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[United Kingdom]
Posted on : Mar 09, 2009
Northstar Recycling Group, based in Springfield, Mass., and David Cutler
Industries, a Pennsylvania recycling operation, have announced a joint venture
type operation between the two companies in the Philadelphia area. However, the
joint venture is far different from most JVs that have been announced.

Under the arrangement, the two companies will consolidate their processing
operations in Philadelphia. Noah Goodman, with Northstar Recycling, stresses
that the arrangement does not mean the two companies are merging. Rather, the
arrangement, expected to begin May 1, 2009, will allow both companies to move
from each operating a packing plant in Philadelphia, to sharing one processing
facility in the city. The plant will be the facility that Cutler Industries
presently operates.

This, Goodman points out, will end up optimizing equipment, people and the
facilities. At the same times, extra equipment that was located at Northstar’s
Philadelphia plant will likely be used by other Northstar plants.

The material processed at the combined facility will stay with the original
owner - either Northstar or Cutler, although there will be cases where loads
from Northstar and Cutler Industries may be commingled in the processing stage.
The two companies will remain separate entities, with individual management
staffs and contracts.

While the timing is fortuitous, Goodman notes that the company has been looking
at some type of move such as this in the Philadelphia area for around two years
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