Rubber recycling firm LandStar Inc. has sold several of its subsidiaries for an undisclosed amount, according to the company's press releases and Securities and Exchange Commission filings.
In December, LandStar sold its Arizona subsidiaries-PolyTek Southwest Inc., LandStar Polymer Asphalt Inc. and Modified Asphalt Technologies Inc.-to United Trans-Western Inc. (UTWI), a Victoria, British Columbia firm, for what it called ``a nominal dollar amount.''
Under the purchase agreement, UTWI-with which LandStar has directors in common-will continue to contract with LandStar to provide vulcanized materials to LandStar customers.
Also, LandStar said it would assist UTWI with the financial restructuring of PolyTek to ensure a smooth transition, the document stated.
A Feb. 3 LandStar press release also announced the sale of PolyTek Oklahoma Inc. to an undisclosed buyer on Dec. 31. On Feb. 1, PolyTek conveyed its Chambersburg, Pa., crumb rubber plant to Edge Rubber Pennsylvania L.L.C., the security holder on the facility, the release said.
LandStar purchased PolyTek-which it described as the world's largest crumb rubber producer-in early 2001, agreeing to purchase all of PolyTek's common and preferred stock as of Feb. 28, 2002. PolyTek's four crumb rubber facilities-in Oklahoma, Arizona, Michigan and Chambersburg-had an annual production capacity exceeding 150 million pounds and annual revenues of about $17 million, according to LandStar.
PolyTek was in default on a promissory note to a secured lien holder, the company added, and had filed for Chapter 11 bankruptcy protection.
LandStar announced a deal in October 2002 with the Solid Waste Authority of Central Ohio to buy a 500,000-sq.-ft. facility in the Columbus area. LandStar President D. Elroy Fimrite said the Ohio plant would be the first of a series of ``Rubber Recovery Refineries'' set up to recycle all kinds of rubber waste, with an annual capacity of 200 million pounds.
Landstar has divested all vestiges of PolyTek, Mr. Fimrite said. ``We are paring down Landstar to focus on our devulcanization technology,'' he said, adding that the Columbus facility will showcase Landstar's devulcanization efforts.
The company has no opening date yet for the Columbus plant, he added.
The purchaser of PolyTek of Oklahoma was Jim King, the original builder of the PolyTek plant in the state, he said. Mr. Fimrite anticipated the plant being up and running by the first quarter of 2003. At the time he said the Chambersburg crumb rubber facility, with its annual capacity of 35-40 million pounds, was insufficient to keep up with the demand for LandStar's fine powders, which was the main reason for establishing the Columbus plant.
LandStar had total assets of $18.2 million and total liabilities of $18.8 million as of Sept. 30, 2002. The company's Web site showed that its stock was worth 4.5 cents per share Feb. 19.