Supply Side: Savage, GATXWritten by Carolina Worrell, Senior Editor
Savage joins Cyclyx 10 to 90® program to help reduce plastic waste. Also, GATX Corporation (GATX) announces BBB+ Long-Term Issuer Default Rating (IDR) from Fitch Ratings, Inc. (Fitch).
Global supply chain provider Savage on Jan. 24 announced that it has joined Cyclyx, a consortium-based company working to divert plastics from landfills and increase plastic recycling rates from 10% to 90%.
According to Savage, the company works to move and manage more than 3.5 million tons of plastic materials annually through its network of transload materials and other sites across North America responsibly and safely. Savage also participates in the Operation Clean Sweep® and Responsible Care® programs to help contain plastic resins and keep the environment and waterways safe and clean.
According to Savage, only 10% of the world’s post-use plastic gets recycled today, relying on “fragmented, inefficient systems.” Valuable plastics end up in landfills, incinerators, and the environment, partly due to the chemical complexity and variety of post-use plastics and the use of existing infrastructure not designed for the circular economy. Advanced recycling, Savage says, allows these plastics to be reused as feedstock in the refinery process, chemically broken down into raw materials used to create new plastic pellets.
New circulatory centers in development by Cyclyx will allow “a more significant amount of waste plastic to be transformed into usable feedstock than is possible with today’s recycling infrastructure,” Savage said.
“We’re excited to join with Cyclyx and other industry partners, including some of our customers, to drive innovations that enable more plastic to be recycled and to significantly reduce plastic waste,” said Savage President and CEO Kirk Aubry. “We hope our supply chain expertise can help create a more sustainable future by modernizing the supply chain for waste plastic and reducing the environmental impacts.”
“We’re pleased to welcome Savage as members in Cyclyx and look forward to working together to divert post-use plastic from landfills through our 10 to 90® programs,” said Cyclyx CEO Joe Vaillancourt. “Our objective is to transform the recycling industry and give post-use plastics new life by providing customized feedstocks for our customers to use in their recycling technologies that convert this valuable material back into its original building blocks for reuse.”
GATX announced Jan. 30 that Fitch has assigned the company a BBB+ IDR with a “stable outlook”, a BBB+ senior unsecured debt rating, an F2 short-term IDR and an F2 commercial paper rating.
According to Fitch’s published report, the rating and outlook “reflect GATX’s established market position within the railcar leasing industry; diversified fleet portfolio across customers, industries and car types; strong asset quality; appropriate leverage; solid liquidity and experienced management team.” GATX’s ability to generate strong cash flow through cycles and a predominantly unsecured funding profile also informed Fitch’s assessment, the company stated in a release.
“We are pleased to obtain Fitch’s BBB+ rating with a stable outlook,” said GATX Executive Vice President and CFO Thomas A. Ellman. “This rating recognizes our long-standing business strategy, strong credit attributes, and track record of delivering solid operating and financial results for our stakeholders.”