Clark: [00:00:00] Hey Clark Covington here with Nic Campesi. Nic how are you sir?
Nic: [00:00:05] Fantastic Clark. How are you?
Clark: [00:00:06] I’m doing great. So today I’d like to talk to you a little bit about Perpetual Rubber and what you all do. Can you give me an idea of what aspects of the rubber business you all are involved in?
Nic: [00:00:17] Yeah I mean our primary goal is we’re a raw material supplier we’ll source raw material rubber that is often trash to one company that we could then reprocess and offer it to someone else, that would be a benefit to them whether it be through reclamation or recycling. We primarily are just in the secondary market for rubber raw materials.
Clark: [00:00:46] Okay so you’re working to help stop streams of rubber go to landfill.
Nic: [00:00:51] That’s absolutely correct.
Clark: [00:00:53] Great. And how long have you been buying rubber?
Nic: [00:00:57] A little over ten years now.
Clark: [00:01:00] Wow. So what types of rubber are you most actively seeking?
Nic: [00:01:04] So you know we’ll look for specialty compounds such as nitrile EPDM natural rubber butyl rubber FKM and it could be you know latex FDA approved rubber there’s all different types you know we’re pretty much you know if it’s something that is a rubber product. We’re interested at least taking a look at it.
Clark: [00:01:29] Okay. And can you walk me through a use case of a supplier of course you don’t have to mention their name but you know where you’re currently buying rubber from. What’s the process start to finish for someone that is listening to this and wondering how it would all work?
Nic: [00:01:42] You know I’ll give a good example of one of our clients that you know they’re in the oil and gas business and they’re producing just a very large amount of scrap factory rejects. Through you know cleaning out parts that didn’t quite come out correct and they were just taking this rubber throwing it in the landfill paying a disposal cost. And you know we were able to lower their disposal cost pretty significantly. And we’re keeping the rubber out of the landfill. We further process the rubber by reducing the size that and we just make a wide spec powder that then goes into making other products with it. And so it’s a you know full circle of keeping this product from going to the landfill and the user is also putting money on their bottom line.
Clark: [00:02:38] Right. That’s excellent. And what type of rubber if any are you guys not interested in is there anything you don’t want to buy?
Nic: [00:02:46] You know the really the only thing that I would say don’t contact me is whole tires. That’s the only rubber that we you know there’s so many regulations involved. With the acceptance of whole tires whether it be truck tractor is you know that’s just outside of our wheelhouse and we will not accept them.
Clark: [00:03:08] Sure sure. That makes a lot of sense. So what kind of demand are you seeing in terms of how much rubber you’re looking for so if someone who has an excess of a lot of rubber and they might think is it worth calling you. I mean how much demand do you have?
Nic: [00:03:22] You know the demand almost unlimited. And the reason why you we’re competing with you’ve got rubber dripping out of a tree that’s a natural rubber you have synthetic rubber that’s being produced. You know all of that takes quite a bit of energy and natural resource to use to create that technology has caught up now with a with the reclamation market being able to make what was once trash by being vulcanized rubber reusable again. And so we’re seeing the demand pick up tremendously in the last year and we forecast that to continue to grow for the next few decades.
Clark: [00:04:10] That’s wonderful and you have the capabilities to handle it?
Nic: [00:04:15] Absolutely.
Clark: [00:04:16] And speaking of that are you available to come on site? Some of these deals may be a little complex they may prefer to speak in-person would you be able to come to a site and assess situation and work things out there?
Nic: [00:04:29] You know it’s not only being able to come on site it’s almost that we mandate it and because there’s there’s a lot of things that can go wrong. You know typically our process works we’ll. We’ll take a look at what you have photographs. And then we may go a little deeper into you know maybe wanting to do some tests on samples but we almost always want to take a site visit due to the fact that there are just so many variables involved.
Clark: [00:04:58] Absolutely. It makes perfect sense. And if someone is working with you is there a way they can receive any kind of certification for recycling and keeping this rubber out of the landfill?
Nic: [00:05:10] Absolutely. You know if there’s any special request that’s needed you know we usually can accommodate. But you know one of the things that we do you know we’re able to produce documentation for companies using tax benefit zero waste goals whatever program is needed we can provide certification. You know of the actual amount of rubber that we did receive from the organization.
Clark: [00:05:37] That’s great. So in a way you can act as a partner to save the supplier time?
Nic: [00:05:44] Absolutely.
Clark: [00:05:45] OK. And in terms of confidentiality if a manufacturer works with you what assurance do they have that their rubber will remain anonymous?
Nic: [00:05:56] So that that’s a really big concern of many of our customers. And you know we’re always willing to sign NDAs. And understand too that we’re able to provide a service that you know we’re not competing we’re not going to take this product you know if someone is making a gasket, we’re not going back into the gasket market with this product. It’s typically going to be you know we’re just producing widespread wide spec powder. Now we do have issues where we do you know not issues but we have instances where customers may want a closed loop service where you know we take their rubber we reduce the size. We may be treat it with a special chemical and then we will return it back to them. And so that that is one possible avenue that that some clients will pursue but ultimately we have a protocol in place that will keep anyone in the business or anyone from outside the business ever really knowing where that rubber came from.
Clark: [00:07:08] That’s really good to know. And let me ask you this, this is probably a question a lot of potential partners would have. Where is the rubber going? I know you mentioned a wide spec powder.
Nic: [00:07:21] So it’s typically going to go back into compounding and that’s going to be then made to make another product. So you know you’ll have examples of some product maybe go from the top end of a part that was used in oil and gas as a mission critical part and it may get turned back down to like a dock bumper at a warehouse you know or a tank lining. So it it eventually has to go back into a powder you know to be introduced back into a new compound.
Clark: [00:07:58] Sure. That makes perfect sense. And what are some of the benefits of working with you compared to any other recycler?
Nic: [00:08:08] Well you know if they go with other recyclers typically they’re guys that are going to be in the business of metals and plastics and different things you know we’re a specialty rubber so usually we’re able to give the customer a big advantage because you know we don’t have a lot of overhead in what we do. Like some of the other recyclers do. We’ll partner up usually on a collection point get the material where we need to process it and you know we’re we’re at heart really you know we’re a logistics business we know how to move stuff around. We utilize rail trucks sea cans you know and everything in-between. And we just are able to keep the costs low to where we can put more money on the client’s bottom line.
Clark: [00:08:58] That sounds great. And Nick if someone is listening to this and they have more questions or they want explore the opportunity to partner with Perpetual Rubber. How do they get in touch?
Nic: [00:09:10] So the best thing to do would be just give us a call at 866-599-8288 or visit www.PerpetualRubber.com and send us over a message.
Clark: [00:09:22] Awesome thank you so much Nick.
Nic: [00:09:25] All right. Thanks Clark.