Profile - Garb Oil & Power Corporation

Garb Oil & Power Corporation (OTCBB and OTCQB: GARB)

Written by John Pentony on October 13, 2010

Garb Oil & Power Corporation (OTCBB and OTCQB: GARB) is a provider of equipment to the waste processing and recycling industries. Specifically, the Company supplies enabling technologies for waste processing and recycling, providing value-added technology.

Garb applies ClosedCycle™ technology and NoWaste™ residue principals. The Company develops processing plants for tire recycling, E-Waste and E-Scrap Recycling, Waste to Energy and Off the Road Tires (OTR). Garb intends to build plants that continue to push the boundaries for the attainment of the ClosedCycle™ principle and a world with NoWaste™.

Garb has the rights to act as the non-United States agent for technology for the remediation of radioactive wastes and exclusive rights to build its plants in the United States and abroad.

Garb is promoting its new line of machines which were just introduced together with its new line of tire recycling and E-Waste plants. The pricing structure and the new technological advancements introduced have generated increased interest in products. Garb expects some small revenue before the end of this year.

Garb has developed a system intended to recover rubber from used large, off-the-road tires and has the rights to act as the non-United States agent for technology for the remediation of radioactive wastes and exclusive rights to build its plants in the United States and abroad. Garb remains committed to technological development, now being one of the few companies worldwide to offer Off the Road Tires (OTR) shredders capable of processing tires up to 14 feet (4.6 meters) in diameter.

Sample Garb PreSorting EWaste Plant Approximate Annual Revenue $4.9M

A small Garb EWaste plant is a pre-sorting and pre-separating plant with the potential to process approximately 35,000 metric tons of EWaste per year. A small Garb EWaste plant requires 50,000 square feet of warehouse space.

Each Garb EWaste plant can stand alone as a single economic unit in terms of revenue and profit. In other words, with one plant — revenue can be generated from that one plant.

Revenue is generated by reselling the copper, the aluminum, the plastics and the metals. These are priced by market demand.

Currently market demand for these products are:

• .50% Copper
• .50% Unusable Waste
• 1% Aluminum
• 28% Plastic
• 70% Metals

• Average per ton: $140

Precious metals are contained in a variety of computer related products, including electronics such as computer circuitry boards which are found in computers, laser printers, copiers, PA-PX systems, faxes, mobile phones, microwaves and other every day products.

At the lowest end of the revenue spectrum a Sample Garb Pre-Sorting EWaste Plant processing 35,000 metric tons of EWaste per year can be anticipated to produce roughly $ 4.9M annual gross revenue. This does not include government subsidies currently available to Garb.

Garb’s Computer Waste (Scrap) recycling plant is capable of handling two metric tons per hour of throughput and comes with a full buyback agreement on all throughput produced. Garb will sign a full long term buyback agreement on all output produced. This plant is an effective option for both the national and international market. The efficiency and cost will make the plant attractive to low cost startup companies interested in contributing to lowering the environmental impact of Electronic Waste.

E Waste as a Financial Resources

EWaste is today both an important resource of primary raw material and a large percentage of hazardous waste. Further due to its very nature, EWaste in all its streams, tends to be voluminous. In considering all of the above; the collection, handling, disposing and processing of Ewaste is a difficult and involving job.

A Garb EWaste facility will collect the Ewaste, pre sort it and separate it. The Garb Presorting EWaste Plant sets aside all hazardous materials, sorting and separating any and all easily accessible raw material such as copper, aluminum and plastic. Furthermore this process will significantly reduce the voluminous impact of the waste as a whole.

The Garb EWaste pre-sorting plant facilitates large waste management companies into channeling their EWaste to Garb. In doing so, such companies extend the life of the landfill, limit the amount hazardous material that actually flows to a landfill. By converging EWaste to a Garb plant, large waste management companies also increase the life of the landfill, as they reduce or eliminate the voluminous material that actually flows into the landfill.

Garb benefits, from the revenue generated from sales and also further benefits from sharing agreements on the collections fees.

Establishing Four Plants

In regards to revenue growth, Garb’s strategy is to build, own and manage its own plants. Revenues from this area is not anticipated to begin to flow until 3 QTR 2011.

Garb is actively involved in raising the money needed to establish its first four plants. Fund raising will be completed by the end of 2010 with the first plant being delivered by end 2 QTR 2011. The plants will reflect Garb technology and know how. Garb does not expect any result here, if any, until the end of the year at the earliest. Garb expects its engineering division to drive sales in 2011, with the EWaste plants, once funded, starting to participate in revenue from 4QTR 2011. Garb noted on October 7, 2010, that it expect to have a further update in 2 weeks.

Garb is considering building 50 Ewaste plants in the United States between 2011 and 2015 . Each of these plants will process roughly 22,000 Metric tons of output generating revenues in excess of $11,000,000 per plant with net profits in excess of $2,000,000 per year.

Garb’s goal is to build, own and manage 10 Ewaste plants per year generating revenues in of $110,000,000 in the first full year of operation and with average 18% return on net profit. The yearly contribution from the plants, will position Garb to take advantage of the growth of Ewaste as both a resource and a raw material, opening opportunity for expansions in Europe, Central and South America, Middle East, Asia and the Indian sub continent.

Further offices are planned for the US with a presence in Eastern USA and a new operating office will be available shortly in Italy. Germany and Italy are Europe’s main manufactures of rubber products and machinery. A further office is planned for Malaysia that will manage Asia Pacific operations.

This will make Garb a powerful and leading player in the recycling and waste processing industry worldwide.

Garb Financial Outlook

Garb has come through a tough financial period but sees the economy turning with some interest being generated, especially from overseas inquiries and expects some small orders from their engineering division from 1QTR next year and building from there.

It has taken Garb almost 12 months to organize and restructure. This has created more efficient and nimble company, capable of dealing with the fast levels of growth that this industry will impose.

Garb has actively reduced its debt by over $3,500,000 in the last 9 months by converting a large portion of its loans into Preferred Shares.

The engineering division is expected to drive sales in 2011, with the E-Waste plants, once funded, starting to participate in revenue from 4QTR 2011.

Garb Strategic Outlook

Garb is concentrating on its Ewaste technology and development of the E-Waste industry. This industry as long term potential. Over 10,000,000 tons per year of ewaste will be produced by the US from 2017.

Ewaste will add to the over 40,000,000 tons of Ewaste that the world market will be producing, making Ewaste $60,000,000,000 industry world wide.

E-Waste Outlook

E-Waste is one of the waste industry’s most important and strategically essential waste stream. The United States will see a growth in E-Waste, from the current 3,000,000 tons per year to over 10,000,000 tons per year by 2017. This makes E-Waste the fastest growing waste stream in the industry.

Garb Oil & Power Corporation is dedicated to the application of ClosedCycle™ principle and NoWaste™ residue. The Company plants for Rubber Recycling, E-Waste and E-Scrap Recycling, Waste to Energy and OTR processing plants.

The ClosedCycle™ Principle and NoWaste™ Residue Principle

Garb’s plant will follow the ClosedCycl™ principle, with the clear aim of using everything and wasting nothing.

Taking a used product at the end of its life cycle, disintegrate it in its various components and re-utilize each of the components to create another new or similar product, leaving no waste. This principle can be adapted to any technology or any product.

Garb has chosen the waste industry and within this industry:

• Rubber waste
• Electronic waste
• Waste to energy

ClosedCycle will produce no waste as ideally input equals 100% of output. This alleviates pressure on the environment through use minimisation of virgin raw materials and once the process is operational, used product flows in a continuous cycle to produce new product, slowly eliminating waste and unnecessary use of original raw material all together.

The Garb markets start with our machines, progress to our plants, then to our powder products and finish with the final rubber product. All of this is achieved by processing waste rubber, using our machines and plants through to our technology and know-how in the manufacturing rubber.

$400 Billion Worldwide Market

The Garb machines fall into two categories: shredding and granulating.

This can be integrated into a plant that refines rubber, electronic waste, and waste to energy. This further leads to the manufacturing of final products. Each of these markets is a multi-billion dollar industry, taken as a whole they represent a market in excess of $ 400 billion worldwide.

Garb Market

Garb delivers value added profitable products aimed at substituting in total or in part original rubber products.

• The 21.6 million metric ton world rubber market
• The 1.3 billion world tire market

Competitive Advantage

• Understanding, know-how, expertise and technology in producing and marketing the finest rubber powder.
• Capacity, know-how, patents and technical expertise in developing, designing, building and selling machinery and plants that contribute to realizing the ClosedCycle™ principal, in modules or turn- key.
• Utilization of this fine rubber powder as a primary raw material to the industry, minimizing the need for original rubber and offering this to the industry at a net cost advantage on original raw material.
• Capacity, know-how, patents and technical expertise in developing, designing, manufacturing and selling raw material capable to be substituted for original raw material offering similar or equal characteristics to original product.
• As the main raw material compound or alloy in the production and sale of secondary manufacturing products

E-Waste and Tire Recycling Plants

Garb Pre-Shredders and Secondary Shredders provide one of the required technologies to properly manage E-Waste. Garb is focusing on the market place both in the United States and abroad while it continues to focus on E-Scrap as a primary technology and continue to both refine the applications and end products deriving from E-Waste.

Garb is focusing on building its own plants both within and outside the United States. This new direction will position Garb to take advantage of the market requirements for E-Waste and E-Scrap over the next 10 years and beyond. This new focus will enable Garb to market its products directly to its main customers as primary raw material.

Garb’s management team has concentrated on reducing the company’s debt while preparing and positioning the company into focusing on the new corporate direction.

This process was finished by the end of third quarter 2010 and has been achieved.

All but two notes have been converted into equity eliminating almost $4,000,000 of the company’s debt.

• On January 15, 2010, RPS, acquired 80% of the issued and outstanding stock of Newview. Newview holds certain proprietary information and other technology that is believed will help complete Garb’s e-waste processing business and processes. This technology has now become integrated into the Company’s sales network.
• On March 24, 2010, the Company acquired a 51% interest in a newly formed entity, eWaste USA, Inc. for the purpose of building, owning and managing ten e-scrap (e-waste) plants on the East Coast of the United States.

Intellectual Property

Garb and its subsidiaries hold numerous patents in recycling machinery and refining processes. The company’s technological and engineering know-how and experience over a wide range of fields was forged over 38 years of trial and error in the recycling business. Garb offers expertise in a variety of waste industries with a clear understanding of the market and customer requirements.

Garb innovation does not limit itself to machines. It is also pushing the boundaries of product development with innovative patents that allow the company to refine rubber into NanoRubber™ powder through providing patented savings. Garb proprietary processes allow the company to provide finer rubber powder in larger quantities. Garb is presently in the US and Europe, with offices in Salt Lake City, Utah and in Iserlohn, Germany.

Further studies have allowed Garb to advance in this area. Garb can now offer Nanorubber™ without the use of nitrogen based technology, increasing savings and reducing costs.

Equipment and Products

RPS provides equipment and products to the waste processing, energy and recycling industries which includes manufacturing and wholesaling available to both the recycling industry and original product manufacturers and producers from raw material to processing.

It supplies the enabling technologies for waste processing and recycling for:

• Single machines
• Entire plants
• Waste rubber
• Municipal waste
• Domestic waste
• Waste to energy
• Electronic scrap
• All derivatives

Industries involved include rubber:

• Power
• Fine rubber particles
• Alloys of rubber
• TPE-V
• Elastomers
• Compounds
• technical rubber products

RPS Granulator System Advantages

• Highest throughput-rates due to the granulator operating with two stators.
• Constant output-quality and throughput rate ensured through continuous adjusting of the cutting tools.
• High production availability due to cutting tools that can easily be adjusted and changed.
• Each stator is equipped with a second cutting tool that can be set into operation by turning the stator after the first one is worn out.
• Swing-out stators ensure optimum protection against damaging or unwanted materials.

Pre-Shredders – Rotar Shears

Rotary shears handle difficult materials including industrial tires, Construction and Demolition Waste (C&D), Construction and Industrial Waste (C&I), Municipal Sludge Waste (MSW), batteries, steel drums, refrigerators, carpets, bales and other products. These shears are built for a low costs of ownership, low operating costs per ton, low maintenance, low downtime and minimized service time.

The largest rotary shear can shred a tire with a diameter of 14 feet (4.2 meters) including scrap metal, e-scrap and tires. The rapid cutting shaft exchange system is patented. The complete replacement of two cutting shaft systems (consisting of shafts, cutting knifes, bearing housings, bearings, sealing and bearing shells) occurs in under 4 hours.

Secondary Shredders – Granulators

The Secondary Shredders or Granulators have semiautomatic, or as an option fully automatic, knife adjustment system. This means the knife can be adjusted during operation without stopping the machine. This procedure leads to a re-sharpening of the knives. The knife adjustment system int secondary shredders ensures a more or less equal rotor knife position in relation to the stator knives. This is crucial for wear intensive production such as tire and E-Scrap (E-Waste) shredding, where the knives need to be adjusted 4 times a day which normally creates a downtime of 3-4 hours each day. By this adjustment system a machine is created with an availability of 95%. In less wear intensive applications like waste shredding, the availability of the machine is more important. Large volume plants rely on the capacity and workability of such machines to sustain throughput and maximize production.

Granulator Advantages

• Highest throughput-rates due to the granulator operating with two stators
• Constant output-quality and throughput rate ensured through continuous adjusting of the cutting tools
• High production availability due to cutting tools that can easily be adjusted and changed
• Each stator is equipped with a second cutting tool that can be set into operation by turning the stator after the first one is worn out
• Swing-out stators ensure optimum protection against damaging or unwanted materials

OTR Machines

Off the Road Tire Disintegrator

The Off The Road (OTR) disintegrator removes the tread portion of OTR tires by slowly rotating the tire against either a high speed rotating brush, buffing assembly or chipping assembly from the full width of the tire and will handle tires from 1.5 meters (5 feet) to 4.6 meters (14 feet) in diameter. The particles are dropped into a chute and then conveyed by screw conveyor to a 1 ton bag where the product can be transported and then be further refined to a final product. This material is a high-grade natural rubber and is clean and free from steel and other contaminants. Once the tread is removed from the tire the rest of the tire can then be sheared or shredded for further recycling or disposal.

OTR Advantages

• Unit is setup in a very short period of time.
• Tires from 1.5 meters (5 feet) to 4.6 meters (14 feet)
• Material is a high-grade natural rubber and is clean and free from steel and other contaminants.

Turn Key Plants

Waste Rubber Recycling Systems

Garb offers turnkey solutions for tire recycling plants. Garb is one of the leading project suppliers for tire recycling plants and machines. Garb has been at the forefront of the development of rubber powder producing plants. Garb has the ability to engineer and build tire recycling plants with a high ROI.

There are different ways to produce rubber crumb and rubber powder. What is 100% clear: If you want to produce a high quality rubber powder for highest value application such as compounding or for TPE (Thermoplastic Elastomers) you need the highest quality rubber crumb < 2mm to begin with.

Electronic Waste Recycling Systems

Garb offers turnkey solutions for electronic waste plants and is one of the leading project suppliers for E-Waste plants.

Electronic waste is the fastest-growing waste sector in the world and most people think of precious metals used in electronic equipment, they think of silver and gold. But even more costly metals, such as platinum, palladium, ruthenium, gold, silver and iridium are also important elements, primarily in producing corrosion free contacts. Because all these metals are both costly and scarce, recycling them is an important process in recovering these precious metals for reuse.

Instead of using a high speed hammer mill to fraction the waste stream, Garb uses a slow speed Fractioner to make sure a high range of sizes from too small to too big is avoided. This avoids a lot of fines from valuable goods as plastics and metal leaves the process into the other streams.

Garb is able e.g. in recovering 95% recyclables of household appliances. With a pre separation process, fridges can be recycled as well. By extracting the liquid Freon in pipes and compressors and by separating the foam, where nearly 50% of the FCW is encapsulated, the remaining material can be treated by the same recycling plant. The Freon is collected and transformed into its liquid form.

Computer Waste Recycling Plant

Garb’s Computer Waste (Scrap) recycling plant is capable of handling 2 metric tons per hour of throughput and comes with a full buyback agreement on all throughput produced. This plant comes with its own buyback agreement for all output material produced. Garb will sign a full long term buyback agreement on all output produced. The plant’s efficiency and cost is intended to make the plant attractive to low cost startup companies interested in contributing to lowering the environmental impact of Electronic Waste. Garb is interested in having manycompact Computer Waste Recycling plants stationed all over the world, reducing the direct impact of electronic waste on landfills everywhere.

Management Team

Officers:

Chief Executive Officer and President: John Rossi
Chief Operations Officer: Alan Fleming
Director European Operations and Chief Technical Officer: Igor Plahuta

Directors:
Chairman of the Board, President and CEO: John Rossi
Director and Treasurer: John Wright
Secretary: Igor Plahuta
Director of European Operations: Igor Plahuta

The Garb management team offers experienced personnel with in-depth knowledge and long standing expertise in the machine environment with two mechanical engineers, a civil engineer, members with patents on machines and plant processes.

In business two members have an MBA, one member with a Master of Entrepreneurship and Innovation and fully qualified business people and machinist, giving the correct balance between business and practical expertise directly at board level.

Over 200 years of combined experience in the waste business.

Many of these industries require, new and inventive ways to deal with what are fundamentally old problems. Therefore some of the technology and expertise applied is cutting edge and some of the patents used or deal with are very recent in application.

• Degrees in Mechanical Engineering
• Degrees in Science – Marketing, Business, IT and Finance
• Degrees in Accounting
• Masters of Business Administration – Marketing and International Business
• Masters of Entrepreneurship and Innovation – Leadership and Innovation
• They further have combined, over 200 years experience in developing and building machines
• Over 100 years combined experience in Waste industries and related fields
• Over 100 years experience in Waste rubber and derivatives

History of Garb

Garb Oil & Power Corporation (Garb) was founded in 1972 by John C. Brewer. The company is a pioneer in the recycling industry and waste industry. John C. Brewer invented, patented and produced the first shredder in the world.

designed specifically for shredding tires. This shredder revolutionized the waste tire world. Despite a general lack of interest in the beginning toward this technology from the recycling market, this patented shredder became a key inspiration for the design and innovation of a variety of shredding machines that followed.

John C. Brewer continued his efforts in the recycling industry and his commitment to the technology led him to another world first. In 1995 he patented the first OTR (Off the Road) Tire Processor; this innovation inspired a variety of designs aimed at handling the large massive tires produced for the mining and construction industry. Garb’s OTR patent is one of the company’s benchmark patents still in force today and it is one of the key machines of the Garb technology foundation.

This tradition for innovation, now stemming over 37 years, is a key founding principle upon which Garb thrives. Garb continues to infuse this same tradition of enthusiasm and innovation into its operations and the founder’s trademark commitment to breaking new ground will carry on into the future.

With Garb´s automatic knife adjustment system for our secondary shredders and our quick interchanging shaft process patented by Igor Plahuta our Chief Technical Officer, Garb machines provide customers with significantly increased levels of productivity. All of these technological developments are available now and are featured on all Garb machines.

The new industries of Waste Rubber, Electronic Waste (E-waste) and Waste-to-Energy will be the new areas upon which Garb is currently focusing its innovative spirit. The integration of Garb’s ClosedCycle™ principle and the attainment of a NoWaste™ process in these industries, along with innovation and contributing technology and products will keep Garb Green on Growth.

Contact:

Garb Oil & Power Corporation
John Rossi, President & CEO
1588 South Main St., Ste 200
Salt Lake City, Utah 84115
Phone: (801) 738-1355
Fax: (801) 738-1102
info@garbmail.com
www.garbop.com

Garb Oil & Power Corporation is a company dedicated to the application of ClosedCycle™ technology and NoWaste™ residue. The Company’s processing plants for tire recycling, E-Waste recycling and E-Scrap Recycling, Waste to Energy and OTR, are all developed with these principles in mind. Garb believes that processing waste should be economically viable and leave NoWaste™. It is our endeavor to build plants that continue to push the boundaries for the attainment of the ClosedCycle™ principle and a world with NoWaste™ www.garbop.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995.Statements contained in this profile that are not historical fact are forward-looking statements based upon management’s current expectations. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. The results anticipated by any or all of these forward-looking statements may not occur. Garb Oil & Power Corporation is not required to update its forward-looking statements.

Disclosure: GARB Disclosure: Pentony Enterprises LLC entered into an investor relations consulting and market awareness contract on September 29, 2010 for the period ending January 31, 2011.  Garb Oil & Gas has compensated Pentony Enterprises LLC six millions five hundred thousand restricted Rule 144 shares of  GARB common stock for profile coverage and consulting services. We have taken no free trading shares. To avoid all potential conflicts of interest, we never sell shares into the open market during an active market awareness or investor relations program. This means that as we release new information about a particular client company either on our site or otherwise authored by us, you can be confident we are not selling shares at the same time. We hold only restricted shares and will not register or sell these shares at anytime during the promotional period. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.