Firestone Polymers Outsources Mobile Asset Management to TrenStar

Synthetic rubber producer inks 10-year deal to sell fleet of returnable aluminum containers to service provider

Synthetic rubber producer inks 10-year deal to sell fleet of returnable aluminum containers to service provider

Denver  July 7, 2005  Mobile asset management specialist TrenStar has purchased the industry's second largest returnable aluminum container fleet from Firestone Polymers in a deal that has TrenStar providing an outsourced mobile asset management solution to the synthetic rubber producer for a 10-year period.

Under the agreement, announced this week, 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. Firestone Polymers has its headquarters in Akron, Ohio.

Founded in 2001, TrenStar's singular mission has been to buy, track and manage high-value containers for customers throughout asset-intensive industries. The company said that this deal would solidify TrenStar's 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. Goodyear is also a TrenStar customer.

TrenStar said its container pool is designed to enable shared operational efficiencies and cost savings through reduced capital requirements and lower, more predictable fixed operating expenses.

"We see the potential and understand the value of industry pooling," said John Vincent, Firestone Polymers president. "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."

Vincent said that the deal should assure Firestone of availability of containers and allow the company to realize 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," he said.

"TrenStar's pay-per-use model of mobile asset management is capturing the attention of synthetic rubber producers because we've proven that we deliver value on day one," said Greg Cronin, TrenStar's president and CEO. "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."

TrenStar's other customers include Carlsberg UK, Coors Brewers Limited and Kraft.

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