Northern Technologies International Corporation (NTIC): PESTLE Analysis [Nov-2025 Updated]

Northern Technologies International Corporation (NTIC) is at a critical inflection point, as shown by their fiscal 2025 results: consolidated net sales hit $84.2 million, but net income collapsed to a mere $18,000. You're seeing a company balancing its stable, but slowing, ZERUST® industrial corrosion business against the high-potential, regulatory-driven Natur-Tec® bioplastics segment. This PESTLE analysis cuts through the noise to show you exactly where geopolitical risk, raw material costs, and global sustainability mandates are creating both immediate pressure and massive, long-term opportunity.

Geopolitical friction and global trade policy are the primary near-term risks, directly hitting supply chains and joint venture (JV) performance. Persistent macroeconomic headwinds in Europe are defintely challenging JV sales and profitability, and US-China trade tensions complicate everything from tariffs to logistics. Still, the company secured a $13 million Brazil offshore oil and gas contract, which shows they can navigate politically sensitive markets. You have to watch where the US trend toward deregulation might ease domestic environmental compliance costs, but honestly, global complexity is the bigger issue for a company this spread out.

Global trade policy is a direct tax on the bottom line.

Cost volatility and end-market weakness squeezed margins hard in fiscal 2025, despite strong growth in China. Consolidated net sales decreased 1.0% to $84.2 million, but the real pain point is net income plummeting to just $18,000 (or $0.00 per diluted share). Gross profit margin compression to 37.6% due to raw material and logistics cost volatility is the key metric to watch. Honestly, that's a razor-thin margin.

Here's the quick math: a 14.0% increase in NTIC China net sales to $16.2 million was largely offset by a 20.7% decline in ZERUST® oil and gas sales to $7.3 million, showing end-market volatility is a serious risk. Margin compression is the silent killer of growth.

Consumer and corporate demand for sustainability is a powerful tailwind, driving the high-growth Natur-Tec® segment. Strong demand for sustainable packaging is the main engine here. The global push for Environmental, Social, and Governance (ESG) reporting increases demand for green corrosion solutions, too. Plus, industrial customers now prioritize worker safety, favoring non-toxic Vapor Corrosion Inhibitor (VCI) products over hazardous coatings, which is a structural advantage for ZERUST®.

To be fair, labor market tightness and increased personnel expenses contributed to a rise in operating expenses in fiscal 2025. Green demand is a growth mandate, not a choice.

Innovation is focused on bio-based materials and smart packaging to capture future market share. The shift toward bio-based Vapor Corrosion Inhibitor (VCI) formulations to replace traditional synthetic corrosion inhibitors is key for ZERUST®'s long-term viability. Natur-Tec® innovation in home-compostable bioplastics (PLA/PBAT blends) is crucial to overcome industrial composting limitations, which is a major market barrier. Also, ZERUST® is advancing products like conductive VCIs for specialized electronics protection.

The development of smart VCI packaging integrating Internet of Things (IoT) sensors is a clear path to premium pricing. Future growth is in the formula, not the film.

Global regulatory compliance, particularly tax and chemical standards, is a significant and costly operational burden. The high effective income tax rate of 67.5% for fiscal 2025 due to foreign subsidiary taxes and withholding is a huge drag on profitability. Compliance complexity navigating varied global regulations like the EU's REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is an ongoing operational cost.

The company also incurred a one-time penalty of $387,000 from Ningbo Customs in China for a technical classification matter in Q4 2025. Foreign tax and compliance are eating the profits.

Global mandates on plastics and a focus on circularity create a massive, non-cyclical market opportunity for both segments. The global regulatory trend toward mandatory bans on single-use plastics creates a huge market for Natur-Tec®'s compostable resins. Natur-Tec® products offer an impressive 80% carbon footprint reduction versus traditional petroleum-based plastics.

ZERUST®'s Vapor Corrosion Inhibitor (VCI) products also aid in asset preservation and remanufacturing, reducing waste and the energy needed for new metal production. The shift to green is the company's biggest long-term moat.

Northern Technologies International Corporation (NTIC) - PESTLE Analysis: Political factors

Geopolitical risk from US-China trade tensions, impacting global supply chains and tariffs

You can't talk about global business in 2025 without starting with the US-China trade dynamic. This political tension remains a major risk for a company like Northern Technologies International Corporation, which operates in over 65 countries. The primary concern is the continued uncertainty around tariffs and trade disputes, which can disrupt global supply chains and increase raw material costs.

Still, NTIC's China operations showed remarkable resilience in fiscal year 2025. Consolidated net sales for NTIC China actually increased 14.0%, reaching $16,240,000. This jump shows their local joint venture (JV) is navigating the political headwinds better than expected, but the overall risk of new tariffs or export controls remains a constant threat to their supply chain and margin stability. It's a tightrope walk.

Persistent macroeconomic headwinds in Europe challenging joint venture (JV) sales and profitability

The persistent economic and political instability in Europe, exacerbated by factors like the war between Russia and Ukraine and high energy costs, has been a direct headwind for NTIC's joint venture profitability. The JVs are crucial because they extend the company's global reach without massive capital expenditure, but they are also the first to feel regional economic pain.

For the full fiscal year 2025, NTIC's joint venture operating income decreased 9.8% to $8,545,000, down from the prior year. This decline is a clear signal that the macroeconomic slowdown in key European industrial markets is challenging their partners' ability to convert sales. The company specifically highlighted 'challenges in the European market' during the second quarter of fiscal 2025, which contributed to a consolidated net sales decrease of 1.0% to $84,234,000 for the full year.

Here's the quick math on the JV impact:

The JVs are a vulnerability right now.

US political trend toward deregulation, potentially easing domestic environmental compliance costs

The US political landscape is shifting toward a significant deregulatory environment in 2025, particularly concerning the Environmental Protection Agency (EPA). For NTIC, this trend presents a nuanced opportunity and risk. On one hand, a rollback of federal environmental regulations could reduce compliance costs for their US industrial customers who use ZERUST® corrosion-inhibiting products, potentially freeing up capital for other investments, including NTIC's solutions.

On the other hand, NTIC's Natur-Tec® bioplastics business, which focuses on environmentally beneficial and biodegradable polymer resin compounds, thrives on stricter environmental standards. If the federal government reduces restrictions on pollutants or revisits the designation of certain toxic chemicals as hazardous substances, the competitive necessity for 'green' products could diminish.

• Rollbacks of federal environmental rules are expected to target the economic impact of regulations.
• This could ease the hidden costs of environmental compliance for NTIC's industrial client base.
• The risk is a potential reduction in market demand for the Natur-Tec® segment, which is driven by environmental mandates.

Securing a $13 million Brazil offshore oil and gas contract, showing success in politically sensitive markets

In a clear political and strategic win, NTIC's 85%-owned subsidiary, Zerust Prevenção de Corrosão S.A. (Zerust Brazil), secured a major three-year contract in November 2025. The contract, valued at approximately $13 million (R$70 million), is to provide corrosion protection solutions for Floating Production Storage and Offloading (FPSO) units in Brazil's offshore oil and gas sector.

This is a significant political factor because it demonstrates NTIC's ability to secure large, multi-year contracts in a highly regulated and politically sensitive market-the deepwater oil and gas industry. While the full revenue will ramp during fiscal 2026 and run through calendar 2028, not fiscal 2025, it provides a strong backlog to offset the 20.7% decline in ZERUST® oil and gas net sales to $7,318,000 seen in fiscal 2025. This win validates their strategic investment in the ZERUST® oil and gas infrastructure and their ability to navigate complex international procurement processes.

The contract is a clear indicator of political and commercial trust in a key emerging market.

• Contract Value: Approximately $13 million (R$70 million).
• Materials Component: Approximately $7.4 million (R$40 million).
• Services Component: Approximately $5.6 million (R$30 million).

Northern Technologies International Corporation (NTIC) - PESTLE Analysis: Economic factors

The economic landscape for Northern Technologies International Corporation in fiscal 2025 was a story of two halves, where strategic investment costs and end-market volatility severely compressed profitability despite relatively stable top-line sales. You need to look past the nearly flat revenue and focus on the sharp drop in net income; that's where the real economic pressure lies.

Here's the quick math: while consolidated net sales only dipped slightly, the cost of doing business-especially raw materials and new sales infrastructure-ate away at the bottom line, demonstrating how quickly macro-economic shifts can turn a growth strategy into a near-term earnings challenge.

Fiscal 2025 consolidated net sales decreased 1.0% to $84.2 million.

NTIC's overall revenue held up, but only just. Consolidated net sales for fiscal 2025 were $84,234,000, a marginal decrease of 1.0% compared to the previous year. This flat performance signals challenging market conditions, particularly decreased demand for both ZERUST® and Natur-Tec® products globally. To be fair, a 1.0% dip is not a collapse, but it shows the difficulty in driving growth amid global economic uncertainty, especially in key markets like Europe and the automotive sector.

Net income attributable to NTIC plummeted to $18,000 (or $0.00 per diluted share) in fiscal 2025.

This is the most critical economic factor: the bottom line fell off a cliff. Net income attributable to NTIC for fiscal 2025 was a mere $18,000, which translates to $0.00 per diluted common share. This is a massive drop from the $5,409,000 net income in fiscal 2024. The primary drivers for this collapse were a 6.4% increase in total operating expenses, which hit $37,651,465, and a decrease in gross margin. What this estimate hides is that the company also received a one-time Employee Retention Credit (ERC) payment of $1,140,000 during the year, meaning the operating loss was defintely much deeper without that credit.

Gross profit margin compression to 37.6% due to raw material and logistics cost volatility.

The gross profit margin decreased by 210 basis points, settling at 37.6% for fiscal 2025. This compression is a direct result of the persistent macroeconomic pressures we've been tracking: raw material cost volatility, higher logistics expenses, and the impact of tariffs. Even though the company implemented margin improvement initiatives, the external cost environment simply overpowered those efforts. For a specialty materials company, maintaining margin is paramount, so this is a major headwind for fiscal 2026 planning.

Strong growth in NTIC China net sales, increasing 14.0% to $16.2 million.

Not all news was bad; the economic engine in China showed real strength. NTIC China net sales increased a robust 14.0% to $16,240,000 in fiscal 2025. This growth, driven by strong domestic demand, provides a crucial counterbalance to softness in other regions like Europe. This subsidiary's performance highlights the importance of diversified geographic exposure to mitigate regional economic slumps, and it positions China as a significant future market for the company.

ZERUST® oil and gas sales declined 20.7% to $7.3 million, showing end-market volatility.

The sharp decline in ZERUST® oil and gas net sales is a clear sign of end-market volatility and order timing risk. Sales in this segment dropped 20.7% to $7,318,000 for the fiscal year. This was largely due to the comparison against a significant one-time order recognized in the prior year. However, this segment is also where NTIC made significant strategic investments in sales infrastructure and personnel during fiscal 2025, a move that contributed to the overall increase in operating expenses. The good news is that ZERUST® industrial net sales actually increased 2.4% to $55,171,000, offsetting some of the oil and gas weakness.

Here is a summary of the core economic performance for fiscal 2025:

The economic outlook for NTIC is a classic case of short-term pain for long-term gain. They are actively positioning for a rebound:

• Secured a milestone multi-year offshore contract in Brazil, valued at an estimated US$13 million over three years, expected to ramp up in fiscal 2026.
• Invested heavily in ZERUST® oil and gas sales infrastructure to capture future growth.
• Expanded ZERUST® industrial sales globally, which grew 2.4% to $55,171,000.

Next step: Strategy team should model the impact of the $13 million Brazil contract on fiscal 2026 gross margin by the end of the quarter.

Northern Technologies International Corporation (NTIC) - PESTLE Analysis: Social factors

Strong consumer and corporate demand for sustainable packaging drives the Natur-Tec® segment.

You are defintely seeing a strong social shift toward sustainability, and this is a core driver for Northern Technologies International Corporation's (NTIC) Natur-Tec® segment, which produces bio-based and biodegradable polymer resin compounds. This demand is coming from both consumers pushing for less plastic waste and corporations needing to meet their own sustainability goals.

For the full fiscal year 2025, Natur-Tec® product net sales were $21,746,000, representing 25.8% of NTIC's consolidated net sales. While the segment's full-year sales saw a slight 1.0% decrease, mainly due to shifting order timing and pricing dynamics, the underlying demand is clear. To be fair, the first quarter of fiscal 2025 actually hit a quarterly record with net sales of $5,863,000, a 22.8% increase year-over-year, showing a strong start to the period.

This is a high-growth area, and NTIC is investing in new Natur-Tec® technologies and expanding its North American distribution network to capitalize on the need for finished bioplastic products like foodservice items and industrial packaging. The market is there, but execution is key.

Global push for Environmental, Social, and Governance (ESG) reporting increases demand for green corrosion solutions.

The global focus on Environmental, Social, and Governance (ESG) is not just a trend; it's a mandate that is now materially impacting procurement decisions for industrial companies. This push directly favors NTIC's core ZERUST® Vapor Corrosion Inhibitor (VCI) products, which are non-toxic alternatives to traditional, often hazardous, corrosion-prevention methods.

The ZERUST® solutions segment, which is the bulk of the business, generated $62,488,397 in consolidated net sales for fiscal 2025. The industrial portion of this, ZERUST® industrial net sales, actually increased by 2.4% to $55,171,000 for the year, a sign that the market is prioritizing safer, greener options even amid challenging macroeconomic conditions. NTIC is mapping its product development and safety record to this social factor:

• NTIC emphasizes ESG and global diversity in its operations.
• The company reported only one lost-time incident in fiscal 2025, a crucial metric for the Social component of ESG.
• The shift to water-based and low-Volatile Organic Compound (VOC) solutions in the anti-corrosion market is a clear tailwind for non-toxic VCI technology.

Industrial customers prioritize worker safety, favoring non-toxic Vapor Corrosion Inhibitor (VCI) products over hazardous coatings.

Worker safety is a non-negotiable social factor, and it's driving a tangible shift away from hazardous chemical coatings toward safer, non-toxic solutions like NTIC's VCI products. You can't put a price on human capital, but you can see the preference reflected in the sales mix.

The $55,171,000 in ZERUST® industrial net sales for fiscal 2025 shows the continued strength of this segment. This is a clear action point for industrial buyers: choose a non-toxic VCI emitter or film over a traditional, toxic rust-preventative oil or paint that requires extensive safety protocols and ventilation. This preference provides a structural advantage for NTIC, even as overall consolidated net sales decreased slightly by 1.0% to $84,234,000 for the full fiscal year 2025.

Labor market tightness and increased personnel expenses contributed to a rise in operating expenses in fiscal 2025.

Honestly, the tight labor market and the need to invest in talent to drive future growth hit the bottom line hard in fiscal 2025. You have to pay up for good people, and that's exactly what happened.

Operating expenses for the full fiscal year 2025 increased significantly. As a percentage of net sales, operating expenses rose to 44.7%, up from 41.6% in fiscal 2024. This increase was primarily driven by: increased personnel expenses, which included new hires and benefits, plus higher travel and professional fees. Here's the quick math on the impact:

Higher personnel costs, while an investment for future growth, were a major factor in the sharp 67.3% decrease in operating income. For instance, in the first quarter of fiscal 2025, operating expenses were $9,470,000, a 14.0% year-over-year increase, largely due to these personnel and benefit costs. This is the real-world cost of labor market tightness.

Northern Technologies International Corporation (NTIC) - PESTLE Analysis: Technological factors

The technological landscape for Northern Technologies International Corporation (NTIC) is defined by a necessary pivot toward sustainability and the emerging integration of digital intelligence into physical packaging. Your core challenge is translating deep material science-where you are a leader-into high-margin, next-generation products that capture the $20.26 billion global smart packaging market opportunity in 2025.

Shift toward bio-based VCI formulations to replace traditional synthetic corrosion inhibitors.

The market is demanding greener chemistry, pushing NTIC to transition its core Volatile Corrosion Inhibitor (VCI) technology away from purely synthetic formulations. This shift is defintely a strategic imperative, not just an environmental one, as it unlocks access to industries with stringent sustainability mandates, like automotive and electronics. The company's continued investment in new Natur-Tec® technologies, mentioned in the fiscal 2025 results, shows management understands this.

Here's the quick math: While your ZERUST® industrial net sales were strong at $55,171,000 in fiscal 2025, the future growth rate depends on making those VCI products bio-based to meet global supply chain requirements. Failing to innovate here means conceding market share to competitors who are already leveraging biopolymers and microbial metabolites as eco-friendlier substitutes.

Development of smart VCI packaging integrating IoT sensors for real-time corrosion monitoring in high-value assets.

The convergence of corrosion protection and the Internet of Things (IoT) is a major near-term opportunity. While NTIC's public announcements haven't detailed a specific ZERUST® product integrating VCI with IoT sensors, the market is moving fast. The global IoT-enabled packaging market is expected to reach $20.26 billion in 2025, driven by the need for real-time condition monitoring in high-risk shipments, such as pharmaceuticals and expensive electronics.

You need to bridge the gap between your core VCI chemistry and this digital layer. Your VCI capsules already provide a two-year corrosion defense, but adding a low-cost, disposable sensor for humidity or temperature could transform your business model from a product sale to a data-as-a-service offering. This is where the next wave of high-margin revenue lies for protecting assets like wind turbine components and offshore oil and gas equipment.

Natur-Tec® innovation in home-compostable bioplastics (PLA/PBAT blends) to overcome industrial composting limitations.

Natur-Tec®'s focus on home-compostable resins is a smart move that directly addresses a major infrastructure bottleneck. Industrial composting facilities are limited in the US, but home composting is a growing consumer trend, so your innovation in this area is a clear differentiator.

Your R&D in Polylactic Acid (PLA) and Polybutylene Adipate Terephthalate (PBAT) blends is crucial because PBAT acts as a toughening agent for PLA, improving mechanical strength and processability for use in flexible films and injection molding. This allows your bioplastics to be used in more demanding applications, like foodservice packaging and compostable bags. Natur-Tec® product net sales were $21,746,000 in fiscal 2025, and scaling up these home-compostable blends will be key to driving growth in this segment.

The Natur-Tec® product line is positioned to capitalize on this shift:

• PLA/PBAT Blends: Improve mechanical strength and processability.
• 7000 Series: Designed for flexible film applications like compostable bags.
• 3000 Series: Modified PLA for injection molding, used in high-heat applications.

ZERUST® is advancing products like conductive VCIs for specialized electronics protection.

Protecting sensitive electronics from both corrosion and electrostatic discharge (ESD) is a high-value, specialized market. Your ZERUST® brand is actively addressing this with products that combine VCI with anti-static additives.

The ZERUST® ICT®510-ATS Anti-Static VCI Film is a concrete example of this technological advancement. This film provides dual-action protection for metals like aluminum, copper, and brass, safeguarding them from corrosion while simultaneously preventing ESD damage during shipping and storage. This product line is critical for maintaining ZERUST®'s market position in the electronics and defense sectors, where component failure due to corrosion or static is unacceptable and costly.

The table below outlines the dual-threat protection offered by this advanced VCI technology:

Finance: Track the gross margin on ZERUST® ICT®510-ATS versus standard VCI film-this difference quantifies the value of specialized technological integration.

Northern Technologies International Corporation (NTIC) - PESTLE Analysis: Legal factors

High effective income tax rate of 67.5% for fiscal 2025 due to foreign subsidiary taxes and withholding.

You need to look closely at your tax liability for fiscal 2025, as it represents a significant drag on net income. Northern Technologies International Corporation's (NTIC) effective income tax rate spiked to a staggering 67.5% for the full fiscal year 2025, a massive jump from 17.3% in the prior fiscal year. This isn't a sign of massive domestic profitability, but rather the complexity of global tax laws.

The primary drivers are the income taxes paid at your foreign subsidiaries, which are subject to their local statutory rates, and the withholding taxes applied to royalty and dividend payments flowing back to the US parent company. Management expects this rate to normalize, but for now, it crushed your bottom line: full fiscal year 2025 net income attributable to NTIC was only $18,000, or $0.00 per diluted share, down from $5,409,000 in fiscal 2024. That's a brutal tax headwind.

Compliance complexity navigating varied global regulations like the EU's REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals).

Operating in over 65 countries means you're constantly running a legal gauntlet, and the European Union's REACH regulation is a prime example of this rising compliance complexity. The EU is undertaking a significant REACH revision in 2025, which directly impacts your ZERUST® and Natur-Tec® product lines, especially the polymer compounds.

The new regulatory environment introduces a host of technical challenges that increase the cost of maintaining market access. For instance, the updated rules mandate new classification criteria for substances like Endocrine Disruptors (EDCs) and Persistent, Bioaccumulative, and Mobile (PBM) substances by May 1, 2025. Plus, the proposed revision includes a new notification requirement for all polymers produced or imported above one tonne per year, which directly affects your Natur-Tec® business. This isn't just paperwork; it's a costly, continuous R&D and data submission cycle.

Incurred a one-time penalty of $387,000 from Ningbo Customs in China for a technical classification matter in Q4 2025.

A concrete example of global regulatory risk materialized in the fourth quarter of fiscal 2025. Your NTIC China subsidiary was assessed a one-time liability of $386,785 by Ningbo Customs in June 2025. This stemmed from a technical misclassification of Natur-Tec masterbatch resin products for historical exports.

Here's the quick math: the total accrual includes approximately $236,785 for repayment obligations related to a value-added tax rebate and approximately $150,000 in direct penalties. Even a minor technical error can trigger a substantial financial hit in a foreign jurisdiction. Management is evaluating avenues to negotiate the penalty reduction, but the full liability was accrued in fiscal 2025, impacting your operating expenses.

US regulatory environment is seeing a rollback of National Environmental Policy Act (NEPA) rules, creating a fragmented global compliance landscape.

While Europe tightens its grip, the US regulatory environment is moving in the opposite direction, creating a fragmented and unpredictable global compliance map. Several key federal agencies, including the Department of the Interior and Department of Energy, significantly narrowed their rules implementing the National Environmental Policy Act (NEPA) in July 2025. This rollback potentially streamlines domestic project approvals but increases the divergence from international standards.

Also, the US Environmental Protection Agency (EPA) indicated in early 2025 that it is considering a rewrite and potential loosening of chemical safety rules, which apply to nearly 12,000 facilities. This creates a compliance dilemma: you must adhere to the stringent EU standards for your European sales, but the US market may offer a temporary, less regulated path. The key risk is that a fragmented landscape forces dual compliance systems, which is defintely more expensive than a single, global standard.

• EU: Stricter chemical classification for EDCs by May 2025.
• US: Federal agencies narrowed NEPA requirements in July 2025.
• China: Ningbo Customs assessed a $386,785 penalty in Q4 2025.

Northern Technologies International Corporation (NTIC) - PESTLE Analysis: Environmental factors

The environmental factor presents a clear, two-pronged opportunity for Northern Technologies International Corporation, driven by global regulatory pressure on conventional plastics and the industrial push for asset life extension. Your investment thesis here should focus on how NTIC's specialized products capitalize on these non-negotiable sustainability trends, even as the Natur-Tec segment saw a slight dip in sales in fiscal year 2025.

For the full fiscal year 2025, Natur-Tec product net sales were $21,746,000, a 1.0% decrease from the prior year, but the long-term market drivers remain robust.

Natur-Tec® products offer an 80% carbon footprint reduction versus traditional petroleum-based plastics.

The core environmental advantage of Natur-Tec is its bio-based and compostable polymer resin compounds, which are engineered to replace conventional, petroleum-based plastics. While the company claims a carbon footprint reduction of up to 80% compared to traditional plastics, this is the key value proposition driving adoption in the packaging sector.

Natur-Tec's products are certified compostable, adhering to relevant standards like ASTM D6400, which is crucial for market access in regions with strict organics diversion mandates.

Global regulatory trend toward mandatory bans on single-use plastics, creating a huge market for Natur-Tec®'s compostable resins.

The worldwide regulatory environment is rapidly shifting toward mandatory bans on single-use plastics (SUPs), which creates a massive, non-discretionary market opportunity for Natur-Tec's certified compostable resins. This is not a consumer preference; it's a legal requirement in many key regions.

The global biodegradable plastics market size was valued at $5.36 billion in 2025, with the compostable plastic packaging material segment alone projected at $2.1 billion in 2025.

Europe, driven by policies like the EU's Single-Use Plastics Directive, is a bellwether, holding a substantial 42.14% market share of the global biodegradable plastic market in 2025. This regulatory momentum is a powerful tailwind for NTIC, especially as the packaging segment is the leading end-use for biodegradable plastics, accounting for a major revenue share in 2025.

ZERUST®'s VCI products aid in asset preservation and remanufacturing, reducing waste and the energy needed for new metal production.

The ZERUST business unit provides Vapor Corrosion Inhibitor (VCI) technologies that deliver a significant environmental benefit by extending the life of metal assets, which is a defintely more sustainable approach than replacement.

These solutions mitigate the need for costly remanufacturing or, worse, the energy-intensive production of new metal items. The VCI products are used across industries like automotive, military, and the growing power generation sector (e.g., wind turbine components), helping facilities operate more efficiently and reduce maintenance costs.

The company also demonstrates an internal environmental commitment by utilizing electricity generated by 100% renewable sources (through energy off-set credits) for all its facilities in the USA.

Implementation of the ZeCycle Recycling Program offers a closed-loop system for used VCI and LDPE packaging films.

The ZeCycle Recycling Program, a partnership with RecycleMax®, is a crucial step in creating a circular economy for ZERUST's industrial packaging. This program ensures that used VCI and low-density polyethylene (LDPE) packaging films are collected, recycled into post-consumer recycled (PCR) pellets, and then repurposed into new ZERUST VCI packaging.

This closed-loop system directly addresses the waste issue associated with industrial packaging. For every 1,000 lbs of polyethylene film recycled through ZeCycle, the process can offset 1,280 lbs of GHG compared to using virgin LDPE, providing a quantifiable environmental benefit for customers. The program also helps customers meet their own Zero Waste goals and reduce waste disposal costs, making it a compelling, actionable choice for procurement teams.

• Minimize plastic waste by recycling used ZERUST VCI packaging.
• Lower carbon footprint by using post-consumer recycled (PCR) content.
• Reduce waste disposal costs through on-site recycling.
• Support a circular economy and regulatory compliance initiatives.