SEATTLE (Recycling Monster): PRo Kansas Recycling in South Wichita has been hit hard by significant dip in market prices for recycled materials. Consequently, it has decided to hold a fundraiser, by way of which it intends to raise around $15,000 to cover the losses this year. This is the second time that the recycling centre has announced fund-raise in the past two decades of its operations.

According to Mike Hastings, President of PRo Kansas Recycling, many recycled materials have witnessed close to 90% decline in prices. The cardboard, which used to sell for $150 per ton has fallen drastically to $15 per ton. Also, there exists no market at all for some recycled materials such as mixed paper. There have been no buyers for mixed paper over the past seven months, thus resulting in the material getting piled up at the facility, he noted.

The recycling centre is dipping into its emergency funding to ensure smooth running, Hastings said. If the prices continue to remain at lower levels for a longer period of time, the facility may be forced to close its doors or explore means for regular financing, he added.

In addition to employee costs, the steep rise in insurance costs too has contributed to the current financial crisis.