Texas Group Looks to Open Concrete Recycling Plant

A Texas start-up company is in the process of setting up a concrete recycling center on a 100-acre site in the San Antonio, Tex. Area. company, called Recycled Aggregate Materials Co., plans to hire up to 35 people to staff the center.

Officials with the company -- a joint venture between Recycling Services Inc. and R&R Remediation Services Inc. -- say the new concrete recycling center should be open for business by the end of this month. The owners hope to tap into the increased demand for concrete and other aggregate materials by area contractors due to the current construction boom.

The venture is being financed by a consortium of private investors led by local businessman Frank Ingersoll, who will serve as chairman of the new joint-venture company. With the help of private financiers, RAMCO has purchased more than $1 million worth of new crushing equipment, bulldozers and backhoes for the company's operations.

RAMCO also is awaiting word from the Texas Bond Review Board on whether the company will receive permission to raise $4.4 million through an industrial revenue bond issue. In addition, the company is seeking more equity partners.

Company officials say enough private financing is in place to launch the new center, but add that more funding will be needed to facilitate expansion and additional equipment purchases.

Officials with RAMCO say they plan to expand into asphalt recycling and soil remediation services by next year.

RAMCO has the capability to process 300,000 to 400,000 cubic yards of aggregate materials a year at its new center.

Once opened, workers will begin accepting old concrete from projects that demolition and road construction companies previously hauled away to area landfills, says Kerry Garner, president of R&R Remediation and also president of the new venture.

Officials say companies will be able to sell their old concrete, and eventually asphalt, to RAMCO, which will charge them between $2 and $4 a ton for the materials. RAMCO will resell the recycled materials for between $3.50 and $8 per ton, depending on the quality of the products.

Landfill companies typically charge between $6 and $8 per ton to dispose of old concrete and asphalt, according to RAMCO officials.

RAMCO's major target market for its recycled materials will be south of downtown throughout a 10-county area. RAMCO is targeting this area because Garner believes the company will have a price advantage due to lower freight costs.

The company is expected to post first-year revenues of about $1.5 million, according to Garner. Once the company's asphalt and soil-remediation services come on line, Garner adds that annual revenues should jump to the $3.5 million range.

Garner anticipates the city of San Antonio, San Antonio Water System, City Public