Company Initiates Zero-Pay and Charge-for-Oil Policy to Reflect
Current Market Dynamics
NORWELL, Mass.--(BUSINESS WIRE)--Dec. 18, 2014--
Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider
of environmental, energy and industrial services throughout North
America, today 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.”
About Clean Harbors
Clean Harbors (NYSE: CLH) is North America’s leading 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. 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.
For more information, visit www.cleanharbors.com.
Safe Harbor Statement
Any statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
generally identifiable by use of the words “believes,” “expects,”
“intends,” “anticipates,” “plans to,” “estimates,” “projects,” or
similar expressions. Such statements may include, but are not limited
to, statements about future margin performance, and other statements
that are not historical facts. Such statements are based upon the
beliefs and expectations of Clean Harbors’ management as of this date
only and are subject to certain risks and uncertainties that could cause
actual results to differ materially, including, without limitation,
those items identified as “risk factors” in Clean Harbors’ most recently
filed Form 10-K and Form 10-Q. Therefore, readers are cautioned not to
place undue reliance on these forward-looking statements. Clean Harbors
undertakes no obligation to revise or publicly release the results of
any revision to these forward-looking statements other than through its
filings with the Securities and Exchange Commission, which may be viewed
in the “Investors” section of Clean Harbors’ website at www.cleanharbors.com.
Source: Clean Harbors, Inc.
Clean Harbors, Inc.
Jerry Correll, 803-691-3400
President,
Safety-Kleen
Correll.jerry@cleanharbors.com
or
Erik
Kraus, 781-792-5100
EVP Corporate Communications & Public Affairs
Kraus.Eric@cleanharbors.com
or
Jim
Buckley, 781-792-5100
SVP Investor Relations
Buckley.James@cleanharbors.com
