Advanced Environmental Technologies just announced that it will use a new, $11.5 million factory in Watts, Oklahoma to recycle lower-grade plastics. AERT hopes to use this strategy to reduce its costs for materials for its recycled plastic/wood fiber products. The company also plans to re-sell some of the lower grade plastic to other companies, thereby increasing its revenue stream and providing opportunities for revenue that extend beyond the seasonal demand for building supplies.

In an article published in the Arkansas Democrat Gazette, AERT President Tim Morrison commented on the move:

"We’d like to diversify ourselves so that we’re not wholly dependent on how many boards get sold at a Lowe’s store or at a professional deck distributor."

Will this strategy help keep the struggling company afloat? According to the article referenced above, Tim Morrison has confidence:

With the price of plastic on the rebound from lows reported in October, now might be a good time to sell plastic. Morrison said the company intended to reap the benefits.

Not only is he convinced that AERT has the technology to allow it to happen, but he added that the process requires half the amount of workers compared with the company’s Lowell plant.

The company faces delisting from the NASDAQ due its shaky finances and low share prices. We’ll have to watch and wait to see if turns around.

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