Paper Exporter Lands Investment From Recycler Canusa Hershman
Branford, Conn.-based recycled paper broker Canusa Hershman Recycling Co. has taken a stake in Brea’s Newport CH International LLC, which ships used paper to Asia for recycling.
“Exporting is necessary because the paper industry is contracting in the U.S.,” said Jonathan Sloan, Canusa Hershman’s president. Newport’s “focus is Asia and China,” he said.
Canusa recently made an undisclosed investment in Newport CH, which counts seven workers, including principals Clark Hahne, Jimmy Yang and Jim Fagelson.
This year, Newport CH expects to ship about 30,000 tons of used paper a month to mills in Asia. That’s about 2,000 40-foot trucks worth.
Canusa Hershman handles 75,000 tons of paper, plastics and other recyclables a month. Some of its rivals handle up to eight times more than Canusa.
The company is a result of last year’s combination of Baltimore’s Canusa Corp. and Hershman Recycling Inc. of Branford, Conn. The privately held company said it expects “triple-digit sales” this year but doesn’t disclose figures. Canusa Hershman counts 60 workers and 10 sales offices.
Newport CH International buys paper collected from landfills and other sites and ships it from Long Beach to Asia, where much of the world’s paper mills now are.
The U.S. paper industry has been consolidating and paper mills have moved to Asia where costs are lower, Newport CH’s Hahne said. The Asian mills buy the paper and make boxes for consumer electronics and other products, he said.
Hahne said Newport CH International used to work with another broker, Buena Vista-based Bayside International.
“We were the company,” he said.
Newport CH’s owners contacted Canusa Hershman about a deal, according Sloan.
“They decided they wanted to make a change,” he said.
,Sherri Cruz
