[GRRN] Consolidation

Wed, 14 Apr 1999 12:13:36 EDT

A major comment: The reason why consolidation in the waste management
industry will not have a profound negative effect on materials processing is
the relative low cost of entry into the field. For less than a million, I'll
set you up a major paper packing operation. For a few million more, I'll
build you a nice basic MRF. Let the big haulers exit the business; scrappy
entrepreneurs will again re-enter the field and take their place.

A minor comment: Waste Management didn't kill the Paper Recycling
International operation. Stone Container, its joint venture partner, wanted
out of the arrangement when it consolidated with Smurfit, which operates one
of America's largest recovered paper packing systems. Why be involved in two
competitive fiber sourcing systems?

Jerry Powell
Resource Recycling