Clean Harbors, Inc. last Tuesday announced that its Safety-Kleen subsidiary again is revising pricing related to managing used engine and industrial oils. Effective immediately, Safety-Kleen Environmental will be targeting an increase of $80 per stop with all customers across its used oil customer base.
On December 18, 2014, Clean Harbors announced that its Safety-Kleen subsidiary, effective immediately, was eliminating its current pay-for-oil (PFO) program and replacing it with either a Zero-Pay or Charge-for-Oil rate structure.
Then on August 31, 2015, Clean Harbors announced that its Safety-Kleen subsidiary, effective immediately, was expanding its charge-for-oil (CFO) program to full implementation across its used oil customer base, as well as increasing its service stop-fee program.
Kevin Hayden, Executive Vice President, Safety-Kleen Environmental, said, We are again taking the necessary steps to address the continuing rapid decline in crude oil indices and base oil pricing. These adverse energy market dynamics are decreasing the values of our re-refined products and byproducts, as well as our recycled fuel oil (RFO). This increase, which we will now be implementing in both the U.S. and Canada, is needed for Safety-Kleen to maintain the safe, reliable and quality oil collection service we provide to more than 200,000 customers."
Due to market conditions, our re-refining business has been under significant margin pressure for the past three years. We are committed to returning profitability in the Safety-Kleen segment to levels closer to historical norms. The actions we are announcing today are necessary to avoid further deterioration in our existing spread and an important step toward achieving stabilization in this business, Hayden concluded.
Clean Harbors is a leading North American provider of environmental, energy and industrial services. The Company 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. Clean Harbors delivers 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 Americas largest re-refiner and recycler of used oil and a 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.
