October 21, 2008
By Gitte Laasby Post-Tribune staff writer
EAST CHICAGO -- Safety-Kleen's East Chicago re-refinery is undergoing a $15 million expansion to increase production, the company announced Monday. The move comes in response to increasing demand and a growing need to recycle and extend the life of oil products.
"Every gallon we make is another gallon already sold. It's a good business," said refinery manager Scott Miller, as he led a tour of the facility Monday.
"Every gallon we make is another gallon already sold. It's a good business," said refinery manager Scott Miller, as he led a tour of the facility Monday.
Safety-Kleen is the world's largest recycler and re-refiner of used motor oil. The company collects more than 100 million gallons of oil a year. They are transported by barges, trucks and rail from 110,000 suppliers across the country as far away as California and Florida.
Scott Miller, refinery manager at Safety-Kleen Systems in East Chicago, points to the hydro treater towers on a tour of the business Monday. The company is installing new tanks that will hold waste oil.
(Leslie Adkins/Post-Tribune)
Safety-Kleen is the world's largest recycler and re-refiner of used motor oil. The company collects more than 100 million gallons of oil a year. They are transported by barges, trucks and rail from 110,000 suppliers across the country as far away as California and Florida.
"Recycling is at the heart of America's green movement, and Safety-Kleen is a national leader in this field, recycling 80 percent of the liquid and solid industrial wastes we collect each year for re-use or energy recovery," said Safety-Kleen Chief Executive Officer and President Frederick J. Florjancic Jr. in a statement. "Our process for re-refining used oil produces lubricants that meet the same quality standards as new oil, but it does so using 50 to 80 percent less energy."
Through a series of processes similar to regular refining, Safety-Kleen heats up the used oil, separating about 10 percent water from it and turning it into heavy and light oil. The gunk is used for asphalt.
The company started its expansion in late 2007 and early spring this year. It's putting the finishing touches on a $10 million tank farm consisting of 1 million-, 2 million- and 4 million-gallon tanks that store raw and finished materials. When the project is complete at the end of November, Safety-Kleen will no longer need to rent tanks off site.
As a result of the expansion, officials expect to increase annual production by 17 percent to 70 million gallons from 60 million in 2006. The company employs about 100 employees, but only another couple will be added as a result of the expansion.
Much of the recycled motor oil is used in state police vehicles, by military vehicles in Iraq, the Chicago Transit Authority, the U.S. Postal Service and NASCAR. The oil could be used in regular cars, but demand exceeds the company's supply as is.
The re-refined oil is equal to regular oil in quality, performance and cleanliness. It's sold at about the same price, Miller said.
"It's not as much a financial incentive as it is the right thing to do. It's less dependence on foreign oil," he said. "Anytime you can get a recycled product that is equal or better to something new, that's a good thing."
Florjancic said by re-refining the used oil it collects, Safety-Kleen prevents emissions of about 300,000 tons of greenhouse gasses that would be created if the waste oil was burned to get rid of it. That corresponds to taking 200,000 cars off the road every year.
As a sign of changing times in the world of energy, just six to eight years ago, industries, quick-lubes and municipalities would pay Safety-Kleen to take the used oil. Now it's the other way round.
"In the old days, they used to pay us to take it. Now we pay them," Miller said. "There's been a shift in marketplace."
Only a few companies across the United States recycle oil. Miller attributes the success of Safety-Kleen to two factors: The proprietary knowledge that sets the re-refinery apart from a standard refinery, and the extensive collection system.
He hopes the company will one day have another plant.
Safety-Kleen is celebrating the near-completion of the expansion at a ceremonial opening of the tank farm at 2 p.m. today.
By Gitte Laasby Post-Tribune staff writer
EAST CHICAGO -- Safety-Kleen's East Chicago re-refinery is undergoing a $15 million expansion to increase production, the company announced Monday. The move comes in response to increasing demand and a growing need to recycle and extend the life of oil products.
"Every gallon we make is another gallon already sold. It's a good business," said refinery manager Scott Miller, as he led a tour of the facility Monday.
"Every gallon we make is another gallon already sold. It's a good business," said refinery manager Scott Miller, as he led a tour of the facility Monday.
Safety-Kleen is the world's largest recycler and re-refiner of used motor oil. The company collects more than 100 million gallons of oil a year. They are transported by barges, trucks and rail from 110,000 suppliers across the country as far away as California and Florida.
Scott Miller, refinery manager at Safety-Kleen Systems in East Chicago, points to the hydro treater towers on a tour of the business Monday. The company is installing new tanks that will hold waste oil.
(Leslie Adkins/Post-Tribune)
Safety-Kleen is the world's largest recycler and re-refiner of used motor oil. The company collects more than 100 million gallons of oil a year. They are transported by barges, trucks and rail from 110,000 suppliers across the country as far away as California and Florida.
"Recycling is at the heart of America's green movement, and Safety-Kleen is a national leader in this field, recycling 80 percent of the liquid and solid industrial wastes we collect each year for re-use or energy recovery," said Safety-Kleen Chief Executive Officer and President Frederick J. Florjancic Jr. in a statement. "Our process for re-refining used oil produces lubricants that meet the same quality standards as new oil, but it does so using 50 to 80 percent less energy."
Through a series of processes similar to regular refining, Safety-Kleen heats up the used oil, separating about 10 percent water from it and turning it into heavy and light oil. The gunk is used for asphalt.
The company started its expansion in late 2007 and early spring this year. It's putting the finishing touches on a $10 million tank farm consisting of 1 million-, 2 million- and 4 million-gallon tanks that store raw and finished materials. When the project is complete at the end of November, Safety-Kleen will no longer need to rent tanks off site.
As a result of the expansion, officials expect to increase annual production by 17 percent to 70 million gallons from 60 million in 2006. The company employs about 100 employees, but only another couple will be added as a result of the expansion.
Much of the recycled motor oil is used in state police vehicles, by military vehicles in Iraq, the Chicago Transit Authority, the U.S. Postal Service and NASCAR. The oil could be used in regular cars, but demand exceeds the company's supply as is.
The re-refined oil is equal to regular oil in quality, performance and cleanliness. It's sold at about the same price, Miller said.
"It's not as much a financial incentive as it is the right thing to do. It's less dependence on foreign oil," he said. "Anytime you can get a recycled product that is equal or better to something new, that's a good thing."
Florjancic said by re-refining the used oil it collects, Safety-Kleen prevents emissions of about 300,000 tons of greenhouse gasses that would be created if the waste oil was burned to get rid of it. That corresponds to taking 200,000 cars off the road every year.
As a sign of changing times in the world of energy, just six to eight years ago, industries, quick-lubes and municipalities would pay Safety-Kleen to take the used oil. Now it's the other way round.
"In the old days, they used to pay us to take it. Now we pay them," Miller said. "There's been a shift in marketplace."
Only a few companies across the United States recycle oil. Miller attributes the success of Safety-Kleen to two factors: The proprietary knowledge that sets the re-refinery apart from a standard refinery, and the extensive collection system.
He hopes the company will one day have another plant.
Safety-Kleen is celebrating the near-completion of the expansion at a ceremonial opening of the tank farm at 2 p.m. today.
