Did you ever wonder what happened to the paper bags, six-pack carriers or pieces of cardboard you put out for recycling each week? It turns out there is a robust industry in the U.S. called “recovered fiber’ also known as “recovered paper and board.” Here’s what happens:
- You put the recycling bin on the curb.
- The contents are (usually) picked up by a recycling service working with the waste hauling company.
- Paper is sold to a paper mill that applies some chemical processes, renders the fibers reusable, and packages them into roll, sheets or some other form that is sold to a manufacturing company.
- Voila! Your old newspaper is now somebody else’s egg carton.
According to the Institute of Scrap Recycling Industries (ISRI), since 1990, Americans have recycled about a billion tons of paper and cardboard. In 2012, recycled fiber in the U.S. was valued at $8.4 billion and $3.5 billion of recycled fiber was exported overseas.
Wilmington Paper Corporation/Recycling Management Systems, a family owned small business founded in 1977, is a leader in recycling recovered paper and board. From the beginning, Wilmington Paper Corporation/Recycling Management Systems introduced innovative recycling programs that have now been embraced by over 140 manufacturing plants around the world. Using a closed-loop continuous improvement program, Wilmington Paper Corporation/Recycling Management Systems is dedicated to the highest levels of customer service, and to making the world green.
Challenge
Exporting was a strategic growth initiative for the company from the outset, focusing on markets that import recovered paper due to a lack of pulp producing trees native to their forests. The challenge was protecting the growing company’s assets and mitigating the risk of nonpayment by their foreign buyers. As a small business relying on revenue from exports to grow the company, Wilmington Paper Corporation/Recycling Management Systems was particularly vulnerable to the possibility of foreign receivables collection problems
Solution
Export credit insurance from the Export-Import Bank of the United States (EXIM) empowers Wilmington Paper Corporation/Recycling Management Systems to be more competitive by offering foreign customers "open account" credit terms while at the same time mitigating the risk of nonpayment. With export credit insurance from EXIM, the company expanded into additional foreign markets with the confidence that their foreign receivables were protected. Today, the company exports to numerous international markets in Asia, South America, North America and Europe. James Rokuson, Wilmington Paper Corporation/Recycling Management Systems COO, states that the company has always had a strong relationship with EXIM Bank. Together, Wilmington Paper Corporation/Recycling Management Systems and EXIM are making the world a cleaner place.
Learn More
Want to learn more about protecting your assets from nonpayment by foreign buyers? Download EXIM Bank’s Guide to Export Credit Insurance and get started today!
