Clean Harbors Announces Revision to Pay-for-Oil Structure in Safety-Kleen Re-refining Business

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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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