Robert Gottsegen - Page 16

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          together.  Grossman's reports discuss the limited market for the            
          recycled plastic material.  Grossman concluded that the Sentinel            
          EPE and EPS recyclers were unlikely to be successful products               
          because of the absence of any new technology, the absence of a              
          continuous source of suitable scrap, and the absence of any                 
          established market.  Grossman suggested that a reasonable                   
          comparison of the products available in the polyethylene industry           
          in 1981, and in the polystyrene industry in 1982, with the                  
          Sentinel EPE and EPS recyclers, respectively, reveals that the              
          Sentinel recyclers had very little commercial value and were                
          similar to comparable products available on the market in                   
          component form.  For these reasons, Grossman opined that the                
          Sentinel EPE and EPS recyclers did not justify the "one-of-a-               
          kind" price tag that they carried.                                          
               Specifically, Grossman reported that there were several                
          machines on the market as early as 1981 that were functionally              
          equivalent to, and significantly less expensive than, both the              
          Sentinel EPE and EPS recyclers.  These machines included: (1) The           
          Japan Repro recycler, available in 1981 for $53,000; (2) the                
          Buss-Condux Plastcompactor, available before 1981 for $75,000;              
          (3) the Foremost Machine Builders' "Densilator", available from             
          1978-1981 for $20,000; and (4) the Midland Ross Extruder,                   
          available in 1980 and 1981 for $120,000.  Grossman added that all           
          of these machines were "widely available".                                  






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