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Live Nation, Others Spur Growth Plans for E-Recycler

Tustin-based All Green Electronics Recycling Inc. plans to triple its processing operation in Orange County by early next year as it expands nationwide.

The company, which primarily recycles and refurbishes computer equipment, is looking to triple its space here to meet growing demand.

All Green currently leases a 50,000-square-foot building in Tustin that houses its headquarters and processing plant

The expansion comes as companies are becoming more mindful of exposing sensitive information, such as medical and financial records, in an era of hackers and high-profile data breaches, according to Chief Executive Arman Sadeghi.

“It’s a much bigger liability to them than most people imagine,” said Sadeghi, an OC native who lives in Laguna Niguel.

Computer Recycling

All Green collects and tracks electronic equipment for large companies, removes hard drives and either recycles or refurbishes them.

It has a licensing deal with Microsoft Corp. to install Windows on computers going to nonprofits, schools, recreation centers and subsidized housing projects.

Some 12 to 20 truckloads of electronic equipment are destroyed every week at its plants and recycled into pure plastic, glass, aluminum and copper. Circuit boards are stripped of their precious metals—typically gold, silver and platinum—and provide most of the company’s revenue on the recycling side.

All Green has about 250 drop-off locations in California and Nevada for consumers and small businesses.

Each month more than one million pounds of electronics are collected.

The company runs a 40,000-square-foot processing plant in Sacramento. It employs about 90 people here and another 30 in Sacramento.

All Green has yearly revenue of about $10 million and competes in a fragmented market with many small players and a handful of large companies such as Houston-based Waste Management Inc.

To make the business profitable, it primarily targets large companies that need to dispose of hundreds of units at a time.

Customers include Santa Monica’s Activision Blizzard Inc., parent of Irvine online game maker Blizzard Entertainment Inc., Ticketmaster USA, the Department of the Treasury, the Federal Bureau of Investigations, Live Nation Worldwide Inc. and Phillip Van Heusen Corp.

All Green plans to launch its national expansion this fall with the opening of a 60,000-square-foot plant in New York that will employ about 50 people and service major markets on the East Coast. The company has plans for other locations in Chicago, Florida and Texas.

To facilitate the growth Sadeghi is building an executive team from scratch. He recently hired five executives to oversee sales and marketing, technology asset management, traffic, business development and accounting.

“Our company was growing very rapidly and I recognized the need to bring in an executive team to help us through this expansion across the county,” he said.

Washington, D.C-based Institute of Scrap Recycling Industries Inc. pegged electronic recycling annual sales in the U.S. at $5 billion and growing as more companies replace older equipment.

60 Minutes Inspiration

Sadeghi started All Green in 2008 in Orange after watching a 60 Minutes segment on the industry that exposed negligence, poor operational standards, data breaches and mixing electronic waste with hazardous substances in landfills in developing countries.

“Within a month I started the company in an attempt to do something about it,” said Sadeghi, who opted for the computer business over a medical career.

That’s a major reason why the company doesn’t ships waste overseas.

Sadeghi earned a neuroscience degree from the University of California, Berkeley, and spent some time at Harvard Medical School.

He invested his own money to launch the company and plans to seek private financing to fund the national expansion and large equipment purchases.

“Electronic recycling is growing incredibly fast,” Sadeghi said.

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