Clean Harbors, Inc., provider of environmental, energy and industrial services throughout North America, last Thursday 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.”

Clean Harbors serves a diverse customer base, including a majority of the Fortune 500, across the chemical, energy, manufacturing and additional markets, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is North America’s largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customers. Founded in 1980 and based in Massachusetts, Clean Harbors operates throughout the United States, Canada, Mexico and Puerto Rico.