TrenStar Inc. has purchased the industrys second largest returnable aluminum container fleet from Firestone Polymers LLC. In addition, TrenStar will provide an outsourced mobile asset management solution to the synthetic rubber producer for a 10-year period.
TrenStar will manage Firestone Polymers entire returnable container operations, by providing reverse logistics and account management services in addition to handling and cleaning, maintenance and repair and other fleet administration services, on a pay-per-use fee basis.
TrenStar will begin outfitting the 55,000 containers with barcodes and using TrenStarCM, its container management software, to track and manage the distribution of synthetic rubber from Firestone Polymers production plants in Lake Charles, La., and Orange, Texas, to customer facilities nationwide.
This deal solidifies TrenStars customer base in the synthetic rubber industry, and the company intends to start a neutral industry pool of containers for Firestone and other synthetic rubber producers. TrenStars container pool is designed to enable shared operational efficiencies and cost savings through greatly reduced capital requirements and lower, more predictable fixed operating expenses.
We see the potential and understand the value of industry pooling, said Firestone Polymers president John Vincent. But in the short term, outsourcing to TrenStar means that our day-to-day container operations and demand requirements will be managed by a more focused provider with an improved tracking system. We are assured of availability of containers and have the ability to realize tremendous savings through increased container utilization and supply chain efficiencies. TrenStar will constantly evaluate and deliver the best technologies and services so that we can concentrate on strengthening our competitive focus.
TrenStars pay-per-use model of mobile asset management is capturing the attention of synthetic rubber producers because weve proven that we deliver value on day one, said TrenStar president and chief executive officer Greg Cronin. The revenue we generate from our customers is dependent on the success of our solution, which fosters a mutually beneficial and long-term partnership with them. We expect our partnership with Firestone to be the catalyst for the formation of an industry pool that will further benefit the company and will be a boon for the entire industry.