Since its inception, family has been at the heart of the Federal International business. Today, we are still proud to be family owned and operated by the fourth and fifth generations of family.
In recognition of National Family Owned & Operated Day 2025, we highlight our family history and tradition at Federal International.
Roots in Recycling
With $1,500, two men, David Charak and Max Kleban, started a recycling plant in St. Louis in 1914 under the name Federal Paper Stock Company. They named the company Federal Paper Stock Company because it appeared alphabetically before their biggest competitor, General Paper Stock Company, in the phone book. The company’s first building was a pre-Civil War loft located in North St. Louis near the Mississippi River.
David and Max had few assets — a desk, one typewriter, and one scale — but they possessed knowledge of the business and a determination to build something great for themselves and their families. They used horses and carts to collect pre- and post-consumer paper waste and pre-consumer textile clipping waste, namely wool and cotton. Not long after Federal’s founding, the Great Depression arrived. Federal survived and continued to grow during that time.
David was an admired and respected figure in the recycling industry and served as president of the Paper Stock Institute (PSI) of the National Association of Secondary Material Industries (NASMI). At the annual 1937 convention, he was given an engraved scroll testifying to his contributions and the good name he had given the trade. He and Max remained involved with the company until their respective deaths in 1955 and 1966.
Jean worked with his father, David, during the summer while in high school and decided to forego his right to attend West Point after graduation to join the business, a decision he never regretted. Jean was very revered in the industry, holding leadership positions with NASMI and PSI. He led with his father’s philosophy: “Treat people well — even better than they treat you — and to have and retain a good name.”
Edgar was a mechanical engineer by training and joined Federal after a short stint with Laclede Gas Company in St. Louis. He was also actively involved in the industry, serving on committees within NASMI and the Cotton Cuttings Section.
Barnett Goodman, a lawyer by training and the son-in-law of Max Kleban, also worked in the family business and was actively involved in the industry with NASMI and PSI.
Jean, Edgar, and Barnett continued the legacy of Max and David by growing the company, eventually joined by the third generation that would expand Federal beyond its paper and textile recycling activities.
The Third Generation Takes Federal International Abroad & Grows its Footprint in Foam Trading
In 1958, Melvyn Lefkowitz, the son-in-law of Jean, began working at Federal, marking the first third-generation family member working in the business. On the top floor of the company’s plant on McKissock Ave. in St. Louis, Mel began his career sorting materials by hand and learning the business, which quickly propelled him into an influential leadership role within the organization.
The 1960s brought about the production of polyurethane foam, and thanks to its business neighbor Burkart Manufacturing, Federal added polyurethane foam trading to its book of business. In early 1963, one of Federal’s customers received an order from toymaker Mattel to make seven million Chatty Cathy dolls, the first string dolls with a voice. To supply enough foam, Federal turned to the European foam scrap market and appointed Mel to establish the business abroad, which he did by setting up Federal By-Products of Holland as a base for the European foam trading activities and making key connections with business partners and customers.
“As the world and business were changing, so too was Federal,” Mel says. “We were never satisfied with where we were and always sought new opportunities to grow the business, whether it was new locations, expanding our trading to new commodities such as foam, or developing partnerships with other companies.”
David Charak II, Jean’s son, joined the business in 1964, the year of Federal’s 50th anniversary, and just as the foam trading business was taking off.
Over the next 46 years, Mel and David significantly expanded the foam trading and fabrication business.
As Vice President, David ran the day-to-day foam trading operations domestically and internationally and grew strong, profitable customer relationships, while as President, Mel worked on company expansion and growth.
“We literally grew our foam trading business from scrap into a global enterprise,” David remarks. “Federal was one of the first companies to import the material into the United States from our European operations.”
In late 1965, Federal bought proprietary information on how to make bonded urethane from one of its foam manufacturing customers. With aspirations to open foam bonding factories globally to manufacture mattresses and cushioning products that were accessible to everyone, particularly in underserved areas, Mel led Federal to begin bonding operations in Puerto Rico and Africa, which were eventually shut down due to market or political situations.
Two years later, Federal purchased a 50% interest in one of its trading customers, Dominion Foam in Canada, which produced bonded foam. With the investment, Federal not only had greater access to the company’s scrap but also had the opportunity to bring bonded foam into the States to sell to the carpet underlay industry. While this operation was very beneficial to Federal’s business, the company eventually sold its stake in Dominion.
Rebond Foam Manufacturing Operations Established in Belgium
In 1972, Federal put down permanent roots in bonded foam with the purchase of a second-hand mold and construction of a factory in Lommel, Belgium, naming the company Agglorex, derived from Latin for “kings of agglomerated foam”. Six hours after its grand opening, the building burned to the ground due to a short in the electrical wiring. Family leadership decided to rebuild the operation from the ground up and reopened the plant in 1973.
Agglorex manufactured rebond foam blocks, sheets and profiles for industries such as furniture, packaging, bedding and foam converting, among others. Sister company Federal By-Products of Holland procured the raw material for Agglorex and traded the surplus supply globally to the carpet underlay industry.
“With the way things started at Agglorex, people might have thought we were crazy to rebuild and start over,” Mel recalls. “But we knew the market potential and firmly believed that our operation would make our company more successful for many years to come.”
In 1978, Federtex was established in Holland as a joint venture between Federal and Airtex Industries, a fabricator of both polyester and polyether materials headquartered in Minneapolis, MN, with the sole purpose of supplying Ford England interior parts for their tractors, the precursor to Federal’s form and trim business today. The contract with Ford lasted approximately five years, and it was decided to expand the Federtex business into other industries and geographic areas.
These three entities remained until 2021, when Federal combined its European business operations into a single business unit, Federal Eco Foam.
Mel & David Purchase the Company, Federal Continues to Grow in Foam Fabrication & Recycling
In 1982, Mel and David purchased the company, with Mel becoming the majority owner as president.
“It was a momentous occasion when Mel and I took ownership of the company, continuing the legacy of my grandfather and father,” David says. “You don’t always see family businesses continue to succeed or stay in the family. I’m very proud of how we grew it together and propelled Federal into the future.”
A year later, Federal purchased Airtex, and more than a decade later, Airtex purchased Foam Technologies, rebranding to what is known today as Federal’s business unit Federal Foam Technologies. From 1992-1995, Mel and Federal Foam set up two new manufacturing sites in New Richmond and Ellsworth, WI, the former being a brand-new, ground-up operation.
In the 2000s, under Mel’s leadership, Federal began to expand its recycling business by establishing physical recycling plant assets in addition to its traditional brokerage model as recycling and sustainability became increasingly more important in business and society. From 2004-2013, Federal purchased real estate to start up its St. Louis and Houston plants, and also acquired recycling businesses with plants in Jefferson City (MO), Dallas, and San Antonio.
With David’s retirement in 2010 and other factors such as foam market consolidation, changes in design preferences for the use of carpet within the built environment, and technology aiding companies in marketing their scrap materials directly, Federal focused its foam trading activities internationally.
The strategy to grow the company’s recycling plant footprint benefited Federal greatly in the replacement of its once-booming domestic foam trading business and expanded commodity trading with materials such as plastics, metals, and pallets.
“The secret to Federal’s success all these years is that we were willing to change and evolve our business,” Mel says. “We have always had an entrepreneurial spirit and ability to quickly pivot our strategy and operations.”
The Fourth & Fifth Generations Begin to Put Their Mark on Federal
Federal celebrated its 100-year anniversary in 2014, which was also a monumental year when Debby Karl and Diane Zenk, fourth-generation family members and daughters of Mel and Suzanne Charak (daughter of Jean), became part of the family business as vice presidents and board members. Debby and Diane quickly became ingrained in the company operations as their father was nearing retirement and were instrumental in the growth of the company through acquisitions, plant startups, and company restructuring, including:
- The 2015 acquisition of ACT by Federal Foam, establishing a plant in Northwood, IA
- The startup of the company’s Denver recycling plant operations in 2016
- The division of parent company Federal International Inc. and business unit Federal Recycling & Waste Solutions into separate legal entities
- The acquisition of a recycling plant in Columbus, GA in 2018
- The consolidation of the European operations into a single entity, Federal Eco Foam, in 2021
- The acquisition of a recycling plant in Harrisburg, PA in 2022
- The purchase of a new industrial building in New Richmond, WI for Federal Foam’s operations in 2023
- The expansion of the Denver recycling plant to an exclusive space for increased capacity in 2025
In 2021, Federal’s family tradition extended to the fifth generation as Michael Karl, son of Debby Karl, joined the business as Manager of Accounting & Shared Services. Michael collaborated with leaders and teams on financial planning and analysis, tax and audit compliance, and strategic projects such as optimizing operations, capital planning, and acquisitions.
As part of the family’s succession plan, Debby and Diane became owners of Federal and its business units, Federal Recycling & Waste Solutions, Federal Foam Technologies, and Federal Eco Foam in 2022, making Federal a 100% women-owned company, a unique designation in all industries the company operates. With this transition, Federal and its business units became certified as Women’s Business Enterprises (WBEs), opening doors to new business with companies that prioritize a diverse supply base.
A New Era at Federal, Looking Toward the Future
April of 2025 marked a historic occasion for the family as Michael was appointed President & CEO. His previous role, along with travel to several of the company’s locations and experiences working on the production floor, prepared him to assume the position and see Federal into its next phase of success.
Michael sees a bright future for Federal and its business units, with goals and aspirations to further grow the company and its product and service offerings.
“My goal is to lead Federal with the same entrepreneurial spirit that’s defined us for over a century — evolving our capabilities while keeping our values rooted in family, integrity, and impact,” Michael says. “As we look to the future, we’re focused on scaling sustainably, investing in innovation, and strengthening our role as a trusted partner in recycling, foam and plastic fabrication, and circular economy solutions.”
Reflecting on the Federal family legacy, Michael is grateful for the path his predecessors have blazed and is excited to continue the tradition with his leadership and keep the One Federal value of Family front and center within the company’s operations.
“It’s incredibly humbling to step into this role, and I’m grateful for the opportunity to continue our family legacy that has made such a lasting impact on our industries, communities, and the environment. When I look back at how my great-great-grandfather started this company with a desk and a dream, I’m reminded that resilience and innovation are in our DNA. That is the spirit that drives all of us at Federal forward.”
