You know a green business is gaining traction when the Environmental Protection Agency stages a media-hyped promotional tour of its plant on America Recycles Day.
That’s what happened to COM2 Recycling Solutions last month when officials at the U.S. EPA’s Illinois office touted the benefits of electronics recycling at the firm’s certified “eCycling” facility in Carol Stream.
A company that started out refurbishing old computers and reselling them to consumers almost a decade ago has transformed itself into a certified local recycler of electronics parts. The company dismantles computers and all types of electronics to salvage re-usable parts, but specializes in re-processing CRT glass. That’s a type of leaded glass found in old computer and TV monitors that’s difficult to recycle because of lead and other contaminants that are tough to remove for re-use, according to Saheem Baloch, owner and founder.
Six years ago, Mr. Baloch heard states were beginning to ban electronics from being dumped in landfills and he decided to place more emphasis on the recycling part of his business. Soon after, COM2 became the first recycling facility in Illinois to obtain third-party certification from R2 and e-Stewards, which are both recognized by the EPA for their assurances that electronics are properly recycled.
Mr. Baloch’s timing was good. Since then, 26 states, including Illinois, have prohibited dumping of electronics in landfills. Fortune 500 and smaller companies, schools, non-profits and individuals now seek out firms like COM2 to help them get rid of outdated computer equipment, televisions, and more. COM2 still refurbishes salvageable computers and sells them at a retail storefront in Lombard, but the bulk of its business is in breaking down electronics and re-processing them for other manufacturers to re-use in new products. The company also provides audit tracks and documentation to demonstrate end-of-life equipment accounting for companies that need to meet their own internal sustainability accounting requirements.
Last year, COM2 collected more than eight million pounds of electronics, including goods from other recyclers sending old leaded glass monitors for re-processing. Revenue has been growing steadily, but volume shot up about 100% in 2009 when COM2 began its CRT glass re-processing division, Mr. Baloch notes. The EPA estimates Americans generate about 2.4 million tons of used electronics each year.
About 80% of COM2’s current business is local, but Mr. Baloch says he recently began receiving electronics from Canada and there are plans to expand to other states next year. He declined to provide revenue.
Crain’s met with Mr. Baloch, 42, to learn more about the green electronics niche he’s carved out for his company in Illinois.
Crain’s: How do these electronics get to you and who pays for your services?
Mr. Baloch: We charge businesses to pick up their old equipment, sometimes by the truckload. If we can clean up the computers and resell them, we’ll share some of that revenue with the company. Otherwise, the original equipment manufacturers (OEM) pay for their own products to get recycled. We have a policy not to charge schools or non-profits for equipment we’ll pick up from them. We also have drop-off centers in Chicago and the suburbs and we just added more in 11 remote counties in Illinois, mostly south of Chicago.
Crain’s: Are there many other local options for recycling electronics? The city of Chicago has drop-off locations for electronics in the city.
Mr. Baloch: There isn’t that much competition here. This industry is wide open and there’s lots of opportunity for growth, but COM2 is the only recycler in Illinois that carries both certification standards so people can be assured their materials are being properly recycled. We also have our own collection facilities, so people can drop off their equipment free of charge. We have locations in Chicago, Downers Grove, Yorkville, Bedford Park, Lemont and other suburbs too. We’re also adding 11 more locations in underserved counties in Illinois soon, mainly south of Chicago.
Crain’s: Why was it important for your company to become a certified electronics recycler?
Mr. Baloch: We offer services downstream to lots of other recyclers and they require these certifications. A lot of recyclers dismantle the computer parts and don’t do the whole job. Most can’t do the glass re-processing of CRT glass and we can process that into clean glass, so it’s become a big part of our business.
Crain’s: How do you see your business fitting in to the local green economy?
Mr. Baloch: We’re focused on protecting the environment by keeping e-wastes out of landfills and preserving our natural resources by limiting the need to mine for new raw materials, such as iron ore. We mostly work on the research side and bring new methods and technologies to process glass and other electronics materials. Right now, we’re working on flat panel TVs. We want to prove in the market there are good ways to re-process glass.
Crain’s: What are your expansion plans for the near future?
Mr. Baloch: Our projection is to grow 30-40% in revenues for 2012.
We plan to expand beyond Chicago next year, starting with California and New York. There’s lots of CRT glass in those states for us to recycle.
In an effort to increase our marketshare we intend to grow our sales and marketing group and will be adding sales representatives to our team. In addition, we plan to add to our compliance department as we seek to renew and expand our certifications. We’re expecting to add about 45 more employees to our current work force of 120 by the end of February 2012 on the production side and in our office staff.
