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FCC to build the first base lube recycling plant on East Coast of the US

06/09/2011

FCC to build the first base lube recycling plant on East Coast of the US

FCC has gone one step further in its commitment to collect and treat used oil in the US. Its US subsidiary, FCC Environmental, will spend 50 million dollars (around 35 million euro) to build its first motor oil recycling plant. FCC plans to build several of these plants in the US.
FCC to build the first base lube recycling plant on East Coast of the US

This facility, which will be located in Baltimore (Maryland), is part of FCC Group's international expansion strategy, which includes development of the environmental services business in the US. These plans will be reinforced by what will be the first recycling plant for this type of oil on the east coast of the US.

The facility will be located on an brownfield site, previously used as an asphalt terminal. The site is easily accessible to Interstate highways as well as capable of handling both rail and barge shipments.

"The U.S. lube oil industry has accepted re-refined base stock when it is of consistent quality, reliably supplied and competitively priced," said Kenneth Cherry, executive vice president and general manager of FCC Environmental. "The Baltimore recycling facility will produce several cuts of base lube, as well as other high value co-products."

The base oil obtained as a result of refining and recycling used oil at the new FCC Environmental plant in Baltimore will be sold and transported off-site via trucks and rail to be processed into diesel motor oils, transmission fluids and other lubricating products that meet or exceed industry standards and specifications. The finished product will be returned to its original state, once the additive packages are blended offsite, as crankcase oil for both automotive and truck use, enhancing the sustainability aspect of its existing used oil collection efforts by FCC Environmental.

We believe the project aligns closely with the overall direction that the State of Maryland and its leaders have stated, particularly in the areas of energy reduction, climate action and green jobs, Cherry said. Additionally, we believe it fits well with Governor Martin OMalleys goal of using sustainable sources of energy to increase Marylands Renewable Portfolio Standard to 20 percent by 2022.

The recycling facility is expected to process more than 150 million litres (approximately 40 million gallons) of used motor oil each year and will employ 30 full-time people in technical, operations and support roles, many of which will be "green" positions.

"FCC Environmental has operated successfully in Maryland for more than 60 years," said Vince Glorioso, vice president of FCC Environmental and who will be responsible for the operating entity running the Baltimore plant. "The location provides a logistical advantage with respect to delivery of the used motor oil to the facility, as FCC Environmental already has a major presence in the area. We collect used motor oils and provide other similar services throughout the mid-Atlantic region, so we already have a sizeable volume of feedstock."

The company anticipates breaking ground on the facility in mid 2012, following the issuance of State of Maryland and City of Baltimore environmental and construction permits, and the plant is scheduled to be operational by mid 2013.

About FCC Environmental
FCC Environmental provides recycling services for the automotive, commercial and industrial sectors of the U.S. economy. Its service offerings include used oil collection and processing, collection and recycling of used oil filters and antifreeze, parts cleaner supply and recovery, plus field service activity and emergency response capabilities to support the requirements of its customers.

Headquartered in Houston, FCC Environmental has maintained a regional office and operation in Baltimore since 1950. It has 38 branches and terminals throughout an 18 state operation, serving over 30,000 customer locations. It is a wholly owned subsidiary of FCC, one of the worlds largest environmental service providers. With more than 90,000 employees operating in over 50 countries, FCC has the financial capability and leadership to allow its US subsidiary FCC Environmental to expand its service offerings. Further information: www.fccenvironmental.com.