RSC Chemical Solutions profits, grows by going green
12 May 2014
By Ken Elkins, Charlotte Business Journal
Efforts by RSC Chemical Solutions to go green are working. The Charlotte-area company, built by the Blumenthal family, plans to add 40 employees during the next three years as it benefits from its strategy to remove petroleum-based chemicals from its products.
RSC operates from offices and a production facility in Indian Trail. The additional jobs will bring the company's total employment to nearly 250, with most of them based in Indian Trail.
Revenue is up, and customers seem to agree that the water-based alternatives to chemicals are just as good as the old formulas, says Aaron Martin, vice president of marketing and business development for RSC.
“One of the focuses for us is not necessarily going green alone but safety,” Martin says. Making products such as Gunk and Liquid Wrench without petroleum-based chemicals is safer for customers, employees and consumers, he says. And that translates into financial gains by reducing the risk associated with the chemicals.
“It’s green, yes, but there is an economic bottom line,” he says.
For example, an RSC hydraulic fluid spilled from a Jacobsen lawn mower will still turn golf course turf brown, but it won’t kill it, as petro products would. And, yes, Jacobsen, a Textron company, is a major customer of RSC.
In 1924, I.D. Blumenthal, a traveling salesman, founded the Charlotte company, which changed its name from Radiator Specialty Co. in 2010. One of company’s first products was Solder Seal, a powder that fixes leaks in automobile radiators.
Today the company consists of RSC Bio Solutions, which makes of bio-based hydraulic fluids and other products, and RSC Chemical Solutions, which makes and markets Gunk, Solder Seal, Liquid Wrench and other products to consumers, through retailers.
Those other products include lubricants, oils, fuel additives, degreasers, cleaners and sealers.
In the move to replace petroleum products, RSC Chemical Solutions first partnered with and then bought a majority interest in Terresolve Technologies of East Lake, Ohio. That has allowed the local company to offer biodegradable fluids, greases, gear oils and other lubricants.
RSC also licenses SafeCare products from Gemtek of Phoenix, but that company remains independent.
Now RSC Chemical Solutions is keeping an eye on what appears to be a de-emphasis of the DIY movement in the United States as modern cars become less and less repairable by their owners.
What’s emerging is a trend toward self-reliance among consumers who still want to play a role in keeping the family automobile on the road, Martin says.
The company plans to market a two-stage fuel-cleaning liquid that hooks into an engine's vacuum lines that’s “designed to clean much better,” he says. That product, which doesn’t yet have a name, will roll out in 2015.
For full article, click here.
Back Add to Prospectus