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Leasing balers – a good solution for Papierhandel Jansen Recycling

The leased HBC110 baler at Papierhandel Jansen Recycling

Today, our Bollegraaf Service Team is in Conversation with Papierhandel Jansen Recycling about leasing balers.

Background

Let’s introduce Papierhandel Jansen Recycling first, before we start talking about leasing balers. Papierhandel Jansen Recycling is a family business established in 1941. Its founder wanted to do something positive for the environment, which led him to collect old paper and cardboard. And that is what Papierhandel Jansen Recycling still does today. Every week, the company collects old paper and cardboard from companies and institutions in the northeastern part of the Netherlands and in
Germany. The company has grown over the years and currently has 21 employees who are based at two locations in Coevorden, Drenthe. With 20 trucks on the road almost every day, the company is well known in the region and is appreciated for its flexibility and efficient communications.

Challenge

The old paper baler had been operating for about 25 years and, despite being in good working order, needed to be replaced. As it worked so slowly, it had to run all day. Sharply rising energy prices meant the need for a new baler became an even greater priority, according to Finance Manager Hepke van Huizen and Director Henk Jansen. The company processes approximately 50,000 tonnes of paper and cardboard every year. A relatively larger proportion of cardboard has recently entered the waste stream, which has increased the company’s transport costs. This was another reason why it made sense to look for a more
cost-efficient baler.

Haiko de Jong, Sales Manager at Bollegraaf, occasionally drove past the site of Papierhandel Jansen Recycling and noticed the bales on the site. He decided to visit the company to talk about its requirements. After taking an inventory of Jansen’s needs, it was agreed that the best choice would be a
completely refurbished HBC110 baler, including a new conveyor belt. The challenge lay mainly in how the new machinery should be purchased – through financing or by direct payment. Financing was the best
option because of the limited impact on cash flow. Ultimately, Bollegraaf introduced Jansen to Mitsubishi HC Capital Europe. Maybe leasing balers was something for Jansen?

Solution

The fact that Bollegraaf gave Jansen the option to finance with Mitsubishi HC Capital Europe was viewed
positively because Jansen would not have to use its bank credit line. This was the first time that the team at Mitsubishi HC Capital Europe had spoken to a representative of the recycling sector, and after
familiarising themselves with this new type of asset, they were able to present the right financial solution to Jansen. The entire process was therefore a great learning opportunity, which other companies with balers can benefit from in the future. Mitsubishi HC Capital Europe soon came up with a suitable lease structure: a term of seven years at a low rate. When this term is completed, Jansen will acquire full ownership of the baler and conveyor belt. That is how leasing balers works.

Result

The HBC110 baler and conveyor belt have been on site in Coevorden since September 2022, and Jansen
is satisfied with its choice. The new baler processes the streams of waste paper and cardboard much
more efficiently and quicker than the old machine. As a result, energy costs have fallen significantly.

In addition, Jansen has adopted a preventive maintenance contract, which ensures that the baler always
runs when needed. Hepke van Huizen says that the long run-up to the lease agreement has been more
than worth it. The financial freedom and the structure of the lease agreement convinced them to work
with Mitsubishi HC Capital Europe.

Thanks to the company’s cash flow situation, financing only had to be arranged over a short period of
time. As a result, Jansen will not have any additional costs relating to the new baler over about seven
years. Considering that a Bollegraaf baler will last at least 25 years, Jansen will likely look back on its
decision with satisfaction.

The company, therefore, faces the future with confidence. Van Huizen liked the fact that the discussions
always took place with both the supplier and financier. He also appreciated that Mitsubishi HC
Capital Europe always had a positive outlook. This convinced him that the investment was the right step for the company, helping it prepare for the future.

Finance is for business users only. Terms and conditions apply. Finance is provided by Mitsubishi HC Capital Europe, a trading style of Mitsubishi HC Capital Europe B.V. incorporated in the Netherlands. Company number 73824917. Registered office address WTC Amsterdam H Tower 4th floor, Zuidplein 36, 1077XV Amsterdam, Netherlands. Mitsubishi HC Capital Europe B.V. is a subsidiary of Mitsubishi HC Capital UK PLC.