NEW PROVIDENCE, N.J., Dec. 3, 2013 /PRNewswire/ -- In a major deal adding $42 million of new revenues, AXION International Holdings, Inc. (OTCBB:AXIH), a leader in recycled plastic and plastic composite, today announced that its subsidiary, AXION Recycled Plastics Incorporated, signed a 3-year contract to provide recycled materials to a major thermoplastics company. This development reinforces the Company's business strategy of its recently purchased assets and related launch as a recycled materials processor and supplier. The contract is renewable in 12-month increments.
The customer, one of the largest heavy gauge thermoformers in the U.S., has agreed to purchase High Molecular Weight High Density Polyethylene (HDPE HMW) in monthly volume commitments from AXION Recycled Plastics.
"In such a short period, we have demonstrated immediate success for our newly launched subsidiary, AXION Recycled Plastics," stated AXION President and CEO Steve Silverman. "In addition, the vertical integration of our operations enable an increased capacity to support our customers' needs. This contract strengthens our presence as a provider of reprocessed plastics and we anticipate receiving more contracts."
AXION Recycled Plastics is a newly established subsidiary of AXION International Holdings, Inc., and positions the Company as a major recycled materials processor and supplier in the Midwest and Southwest US. AXION Recycled Plastics will manufacture the HMW pellet tailoring the material specifically to meet the customer's specifications. There will be a return loop for packaging in place in a conscious effort to reuse in addition to recycling.
About AXION Recycled Plastics
AXION Recycled Plastics recycles post-consumer and post-industrial plastics including HDPE, PP, PVC, TPO, and PS in many forms. As a complete plastics recovery operation, AXION Recycled Plastics sorts, grinds, washes, blends, and pelletizes plastic for future use, offering economic benefits to its customers, while keeping waste out of landfills. In addition, they offer toll recycling services. AXION Recycled Plastics will continue to serve regional customers from its Zanesville, Ohio facility, and establish and grow the recycling capabilities at the Company's Waco, Texas facility to serve new customers in Texas and surrounding states, as well as provide raw materials internally for the Company to produce ECOTRAX® and STRUXURE®.
For further details regarding this asset acquisition please refer to the 8K filed by AXION with the Securities and Exchange Commission on November 21, 2013.
About AXION International Holdings, Inc.
AXION (OTCQB: AXIH) is a green technology company, transforming waste plastics into structural building materials. Using 100%-recycled consumer and industrial plastics, AXION develops, markets and sells its recycled structural composite products through its ECOTRAX® composite rail tie and STRUXURE® building material lines. From the railroading industry to the military to global engineering firms, AXION delivers tested, proven and superior green solutions to infrastructure needs around the world.
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause AXION's actual results to differ materially from those currently anticipated, including the availability of materials at favorable pricing, sufficient manufacturing capability and the risk factors identified in AXION's filings with the Securities and Exchange Commission.
SOURCE AXION International Holdings, Inc.