Clean Harbors, Inc. (“Clean Harbors”) CLH, the leading provider of
environmental, energy and industrial services throughout North America, today
announced that its Safety-Kleen subsidiary is revising its rate structure for
its purchase of used engine and industrial oils. Effective immediately,
Safety-Kleen is eliminating its current pay-for-oil (PFO) program and
replacing it with either a Zero-Pay or Charge-for-Oil rate structure.
Jerry Correll, Safety-Kleen President, said, “Given the adverse conditions in
the base oil marketplace and current energy market dynamics, we are taking
proactive action to further reduce costs associated with the procurement,
transportation and processing of used oil. Our new Zero-Pay and Charge-for-Oil
policy will apply to all U.S. and Canadian used oil generators that
Safety-Kleen services. As the largest collector of used oil in North America
at more than 200 million gallons annually, Safety-Kleen is taking a leadership
approach to the market and realigning our pricing structure to levels that
more accurately reflect the current environment.”
“Margins in Clean Harbors' Oil Re-refining and Recycling segment have come
under substantial pressure since early 2013,” Correll said. “Our goal is to
protect and expand our margins, and ultimately return profitability in this
segment to more historical levels. The actions we are announcing today are
necessary to achieve those goals.”
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