What is Compounding?
As industries continue to push for more sustainable solutions, businesses are re-evaluating how they handle recycled materials to maximize value and efficiency. One key advancement in this area is compounding, which takes raw, recycled plastic and refines it into a more valuable, high-performance material. This process enhances quality, consistency, and usability, allowing recycled plastics to be used in broader applications.
At its core, compounding involves refining regrind—taking shredded plastic and processing it further to create a uniform, high-quality product. Regrind has limited applications without being compounded, primarily in pallets and containers. However, this refinement process makes compounded plastic suitable for high-value applications in industries such as automotive manufacturing, durable goods, and other advanced sectors where precision and consistency are critical.
Why Does This Matter?
Compounding is more than just a refinement process—it is a strategic way for businesses to increase efficiency, reduce waste, and improve sustainability efforts. By transforming low-value regrind into high-quality materials, companies can maximize the financial and functional potential of their recycled plastics.
Additionally, businesses that incorporate compounded plastics into their operations can gain access to premium markets that require high-performance materials. Industries such as automotive, construction, and packaging demand high-strength, durable plastics. Compounded materials make it possible to meet these needs without relying on virgin materials.
How Your Business Can Benefit
Increased Material Value
Raw regrind is a low-value commodity, often worth $0.30 per pound straight out of the granulator. However, when compounded and refined, that same material can be worth $0.60 per pound or more. Plastic compounding adds value by providing consistency, improving flow properties, and expanding usability in high-end manufacturing applications.
Greater Market Opportunities
Compounded plastic has significantly more applications than raw regrind. Refining the material expands its usability into higher-value markets, including automotive, durable goods, and other advanced manufacturing sectors. This opens up entirely new revenue streams for businesses looking to do more with their recycled plastics.
Supporting A Circular Economy
Compounding is not just about increasing the value of raw materials—it’s about making recycling and reuse more efficient on a larger scale. By refining plastic through compounding, businesses can maximize the lifecycle of materials, keeping them in use rather than contributing to waste.
Additionally, this process plays a critical role in reducing manufacturing’s environmental footprint. Compounded plastics can be used in many industries and applications. This allows companies to significantly minimize virgin plastic usage and support a circular economy.
The Next Step for Extera: In-House Compounding
For years, Extera has sold basic regrind to third-party compounders. However, as market conditions did not improve fast enough, we made the strategic decision to bring the process of both compounding and pelletizing in-house. This new development allows us to control every step of the refinement process. Thus, we can ensure consistent quality, faster turnaround times, and greater efficiency.
This investment in vertical integration reduces reliance on outside vendors and significantly lowers transportation emissions and overall carbon footprint. With this process in-house, we can maximize the value of recycled materials while streamlining operations for our customers. This process creates a more sustainable, cost-effective way to manage regrind and expand its usability.
In the coming years, we plan to scale this service further, adding more compounding and pelletizing capacity to meet growing demand. By taking this next step, Extera is furthering its commitment to advancing sustainability and reducing waste. Thus, we can achieve a truly circular economy where materials are kept in use longer and repurposed for higher-value applications.
Compounding and pelletizing services are coming soon to our warehouse! If your business is looking for a way to increase the value of its recycled plastics, reduce waste, and streamline its sustainability initiatives, now is the time to connect with us.
Contact us today to learn more about how our services can benefit your business and how we can help you fully utilize this exciting new capability!
