Established in March 2006, SDH Group, Inc. strives to have a portfolio of companies focused on the sustainable reclamation of resources. SDH Group continually seeks out emerging products, processes and technologies in the areas of reclamation, resource recovery and energy alternatives to develop into commercial ventures. The global market for reclamation products, services and technologies is estimated to be in the tens of billions of dollars.
Phase I of our plan included the acquisition of Ace Recycling in St Petersburg, Florida, SDH Group, through our LLC, Tampa Bay Recycling (TBR), which actively purchased both wholesale (industrial) and retail (walk-ins) scrap metals. TBR was purchased March 2006 so that SDH Group could show a revenue history when filing a 15c211 with FINRA and at the end of the filing process; it was decided to have SDH Group audited and file an S-1 with the SEC. By the time the audit was 90% complete, the market meltdown of September of 2008 had occurred and for approximately 2-3 months the commodities markets were in disarray. TBR could not buy or sell metals because good pricing levels could not be established.
In November 2008, the City of St. Petersburg closed the street for construction where TBR had its entrance, leaving only the use of TBR’s exit for its customers. These issues, along with a few smaller issues caused TBR to close in January 2009. The construction ended in March 2009. During the summer of 2008, a Funder agreed to a $6,000,000 equity investment in SDH Group with a closing date of September 20, 2008. This deal never closed because of the September 2008 market meltdown.
During 2009 and 2010, the management at SDH Group decided to re-work its approach to the funding of SDH Group and its wholly-owned subsidiary Vehicle Environmental Solutions (VES), which is Phase II of the company build up. VES can obtain the technology that accelerates and greatly improve the recycling process of automobiles (there are currently 5 of these units operating, successfully, in Europe) and have a significantly immeasurable positive impact on the environment.
Vehicle Environmental Solutions, LLC, (VES) will specialize in dismantling end-of-life automobiles (passenger cars, trucks and SUVs) and reclaiming the raw materials, in quantity, to be re-used as raw material for the manufacture of new automobiles and other industrial and consumer products (It is far less expensive for a steel company to smelt recycled steel than it is to mine and process the ore). VES will establish a state-of-the-art indoor, environmentally benign, semi-automated automobile reclamation facility, capable of processing up to 16 thousand end-of-life automobiles per annum, and produce substantial concentrations of reclaimed component materials and parts.
SDH has addition developed and/or planned LLCs that work in conjunction or as “cousins” to VES. An example is Pt-Rh, LLC which was developed to extract and refine the three types of Platinum that are used in all catalytic converters. This company alone in its first year of operation could generate $20 million in profits.
SDH Group and its wholly-owned subsidiaries will work aggressively to become, on a global scale, the recognized leader in profitable reclamation products, services and technologies that will enable commercial, industrial and governmental entities to utilize sustainable development. The global market for reclamation products, services and technologies is estimated to be in the tens of billions of dollars. SDH Group’s targeted annual gross revenue goal is $319,406,400 within 10 years of funding through the establishment of 46 VES facilities in the United States, Europe, Australia and targeted Asia countries. Our certainty is that this revenue goal is achievable by utilizing the knowledge and experience of the SDH Group team members in developing the services, technologies, and production of the subsidiary companies presently owned and anticipated to join SDH Group in the near future. The implementation of state of the art technology coupled with calculated expansion will allow SDH Group to revolutionize the recycling industry.
There are more than 50 million automobiles manufactured per year in the United States, with in excess of 13 million automobiles that are reaching the end of their useful life each year and this trend seems to be growing every year. Far more than 10 million vehicles are scrapped annually in one form or another, in the United States alone. Most of these automobiles end up in junkyards, where employees, with little regard for environmental impact, partially dismantle vehicles to satisfy individual customer orders. The remaining hulk (an industry term) is usually sent off to a scrap dealer (shredder). Shredders are primarily interested in getting rid of the vehicle and their process is very unfriendly to the environment. The yards place each vehicle into the machine which, of course, shreds the vehicle. Seeing that they do not disassemble the vehicle, the shreddings are mixed and therefore contaminated and cannot be utilized for recycling. In all cases, the hulk contains significant amounts of materials/parts that, if reclaimed in large quantities, separated and generically identified, would have enhanced value.
Marketing, Sales and Customers
There is a supply and demand issue with this type of environmental recycling. On the supply side, SDH Group has been in talks with two major automobile insurance companies. Aside from a formal contract, it has been agreed that SDH/VES will accept all the insurance companies’ end of life vehicles (ELV), which will average approximately 300 automobiles per week. On the demand side, SDH/VES has lined up buyers for approximately 98% of all auto parts, metals, plastics, glass harvested. Approximate gross value per vehicle is $1,700. One shift can disassemble up to 800 ELV per month.
In the United States, the automobile reclamation industry is ad hock and fragmented. The few attempts to consolidate have failed because no economies of scale resulted from the roll-ups (e.g.: Ford’s Greenleaf program, LKQ – a CarMax affiliate, and Parts America.) The VES systems technology approach is a needed fundamental change to the industry. The existing markets , and emerging new markets, for reclaimed automotive materials and parts are constantly looking for a one-stop-shop, because the costs are less. There is a supply and a large demand for these used auto parts and scrap metals, plastics and glass.
SDH Group and its wholly-owned subsidiaries will work aggressively to become, on a global scale, the recognized leader in profitable reclamation products, services and technologies that will enable commercial, industrial and governmental entities to utilize sustainable development. The global market for reclamation products, services and technologies is estimated to be in the tens of billions of dollars.
Other Potential Business/Technological Acquisitions:
As noted, SDH Group continually seeks emerging products, processes and technologies in the areas of reclamation, resource recovery and energy alternatives, so to develop into commercial ventures. The following are three possibilities where extensive research has been accomplished and the companies/technologies can be obtained:
- Crude Oil Emulsions is a naturally occurring sludge that oil drillers must remove at the well. This sludge is often used power generation at power plants or burn in industrial kilns. However, much of this sludge is just left into pools for disposal. SDH Group could purchase the technology that would separate the sludge back into pipeline grade crude oil, water and clean sentiment.
- SDH Group is currently in Joint Venture talks with a California engineering company that has developed a system to extract the three types of platinum in catalytic converters and refining these metals to 99% purity. This patented process could generate and additional $20,000,000 in the first year, just in platinum sales.
- SDH Group is in negotiations to purchase the company that owns the patents on the disassembly line that will be utilized at all VES locations.
The exit strategy will include SDH Group will include filing an S-1 with the Securities and Exchange Commission (SEC), which will give the company fully-reporting status. SDH Group will initially be trading on the OTC.BB, but will transfer to the American Exchange (AMEX) as soon as possible. This process will allow SDH Group to raise additional capital for further expansion.