Aluminum Smelter Bermco Plans New Alabama Facility

Bermco Aluminum, based in Birmingham, Ala., has announced plans to move its secondary aluminum smelting and shredding operations to a new location in Lincoln, Ala. At the present time, the company operates an aluminum smelter in Birmingham, and the aluminum shredding operation in Bessemer, Ala. By relocating and consolidating the two facilities, the company hopes to more than double its output, while bringing the company closer to its customers, especially the auto industry.

The company says it hopes to complete the deal by the end of 2010, with construction starting by the second quarter of 2011. The company also says it hopes to start aluminum production at the new site by the second quarter of 2012.
Steve Weinstein, Bermco’s CEO, says that plans call for the company to purchase the land and building and relocate its two different operations into a 100,000-square-foot building in Lincoln, about 35 miles from the company’s existing operations.

According to published reports, the new facility will be able to operate two furnaces at one time, which should sharply increase total production at the plant. By moving the aluminum shredding operation to the smelter’s location, the company also says that it should see a significant decrease in the transportation costs for the company.

The report notes that while the company hopes to complete negotiations with the building by the end of this year, the company also is eyeing an additional 40,000 square feet for expansion opportunities.

The company has received indications that permitting should not be a problem at the new facility. The company already has performed planning and design work on the new facility.

Weinstein says being tied so closely to the automotive industry meant Bermco's business was hurt when car sales dropped during the recession. However, he says taking advantage of the lull now will better position the company for new growth as the industry completely rebounds and grows.

Weinstein says production is up 35 percent off its lows a year ago and he anticipates that figure to continue to climb to the heights of 2007.

"We were at the point where we were having to turn away business because of our capacity issues," Weinstein says. "We don't want to be in that position again."