PURE TECH INTERNATIONAL, INC. ANNOUNCES LONG TERM SUPPLY AGREEMENT WITH PEPSI-COLA METROPOLITAN BOTTLING COMPANY, INC.
SOMERSET, N.J., Jan. 5 /PRNewswire/ -- Pure Tech International, Inc. (NASDAQ-NMS: PURT; NASDAQ: PURTZ; BOS: PUR), today announced the signing last Thursday of a long term supply agreement with the Pepsi-Cola Company. Under terms of the agreement, Pepsi-Cola will supply Pure Tech with all of the returned post-consumer polyethylene terephthalate ("PET") Pepsi bottles in the state of Michigan that are not already under contract to Pure Tech. PET Pepsi bottles returned in the areas of Flint and Pontiac, Mich., had already been under contract to Pure Tech. Mr. David Katz, president of PTI, stated, "We estimate that Pepsi will collect and PTI will purchase approximately 27 million pounds of post-consumer PET bottles in the state of Michigan per year. We are excited to have reached this agreement with Pepsi and believe this relationship will generate other possibilities for PTI in the Michigan post-consumer products recycling market. "We already have operations in Michigan and our experience there has dictated this expansion. We anticipate that the recycled PET flake or pellets produced by Pure Tech with the post-consumer bottles received from Pepsi-Cola will be sold primarily into the higher end-user market. These markets include bottle-to-bottle return, new engineered plastics and packaging material." Mr. Simon Sinnreich, chairman of PTI, added, "The 27 million pounds per year of additional supply that we expect to receive from Pepsi under the agreement will increase our supply base by 50 percent. As a result, we believe Pure Tech will become the second largest post-consumer PET recycler in the world. In November of 1992, the company negotiated an agreement with the plastics division of Resource Recycling Technologies where, upon closing, we will receive 25-26 million pounds of post- consumer PET bottles per year. These two supply agreements, when added to our current supply base, will give PTI an approximate supply of over 75 million pounds per year. "We believe that post-consumer plastic bottles received from deposit state operations have certain advantages over bottles from non-deposit states and will allow the company greater flexibility in the recycling of these bottles. Management is determined to maintain the high quality standards that its products have become known for. "The company is presently finalizing negotiations and expects to conclude shortly an agreement whereby it will expand its recycling capacity to efficiently handle its increased supply." Pure Tech International is engaged in the recycling of post-consumer containers made of aluminum, glass, steel and plastic and operates recycling facilities in the states of New Jersey, Connecticut, Michigan and Massachusetts. -0- 1/5/93 /CONTACT: Mike Rietbrock or Davis Weinstock II, 212-953-2550, for Pure Tech International/ (PURT)
CO: Pure Tech International, Inc.; Pepsi-Cola Company ST: New Jersey, Michigan IN: SU:
SM-GK -- NY058 -- 1784 01/05/93 13:34 EST
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|Date:||Jan 5, 1993|
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