Innovation and evolution in metal recycling in Puerto Rico

Fifty years ago, when his father opened a scrapyard, Juan Luis Pagán says the scrap business was very simple.

“We began as a simple collection yard, sorting metal manually and trading it locally,” says Pagán, the current owner of Talleres de Reciclaje de Metales Inc. in Puerto Rico, a third-generation family business with more than a half century of history in metal recycling on the island.

The challenge of modernization

When Pagán began working alongside his father, he faced natural resistance to change.

“My father was convinced we didn’t need to change our way of operating,” he says. “He would say, ‘If it works, why change it?’ Besides, he had many doubts about whether we could recover the investment in new machinery.”

After persistent efforts and debate, Pagán convinced his father to acquire a shear baler, representing their first major investment in modernization.

“It was a difficult moment, but I knew we needed to be more efficient,” Pagán says. “Fortunately, the operation was a success: we doubled production and improved our market competitiveness.”

As a result of this growth, in 2021, they expanded the yard and acquired the adjoining land to better organize the ferrous operations.

The search for a shredder

In the following years, Pagán had his mind set on acquiring a shredder, but the high investment cost of traditional units was a significant obstacle.

“I spent a lot of time researching online, watching videos and contacting suppliers, but the investment required seemed impossible for us at the time,” he says.

Finally, in 2022, he decided to purchase a rotary shear to preshred material.

“With this acquisition, we managed to increase our throughput again, but the material didn’t achieve the necessary density,” Pagán says. “We had to pass it through two or three times, and the level of cleaning and separation was not ideal.”

This meant they couldn’t access the “premium” of shredded material nor effectively recover the nonferrous material.

“Even with the increased production over the shear baler, we were only reaching 50 percent—sometimes even just a third—of the production levels we’d hoped for,” he says. “It was clear that to continue growing, we needed a hammermill shredder.”

Choosing a THOR 6363 K

Two years after installing the preshredder, Pagán invested in a hammermill shredder.

“After consulting with several suppliers, I chose ZB Group’s THOR 6363 K mobile hammermill shredder— a solution I had been considering for years,” he says. “While I had considered larger models like the 8060 and 8080, the 6363 K stood out as the ideal fit to start this journey and work together with our existing equipment.”

Designed as a secondary shredder to work together with twin-shaft shredders or with a rotary shear, the THOR 6363 K was the ideal solution for Talleres de Reciclaje de Metales Inc.

“With a relatively low-power 755-horsepower diesel engine, the shredder processes between 20-25 gross tons per hour of preshredded material, which is more than our preshredder can handle,” Pagán says. “Normally, we operate the preshredder for three days to get the material ready and then run that material through the mill over two days.”

ZB’s patented “ZBrain” automation system also has been key to boosting operational efficiency.

“The crane operator can feed the shredder and monitor the entire operation without the need for additional personnel,” Pagán says.

Maintenance and operation

Pagán says maintenance was one of his biggest concerns when tackling this project.

“However, thanks to the design of the THOR 6363 K, the training process, and ZB’s technical support, the transition wasn’t as complicated,” he says.

Pagán emphasizes the importance of having a skilled welder on the team and conducting daily inspections to detect potential structural damage and monitor wear parts, as being based in Puerto Rico, access to spare parts and technical support isn’t always easy.

“The ZB North America warehouse in Atlanta has been essential in keeping us stocked,” he says. “Additionally, ZB uses top-tier brands, so we can source many common parts locally.”

According to Pagán, the installation process for the shredder was “surprisingly fast.”

“We opted for a version with a longer discharge conveyor to adapt to our existing vibrating pan,” he says. “Within a few hours we assembled the conveyor, and after placing the THOR in position, we were ready to operate that same afternoon.”

Impact and future

Since the shredder began operating, production has increased significantly, according to Pagán, and the yard has increased its processed material by an additional 50 percent while significantly improving margins.

Additionally, the company now can sell shredded material at premium prices and fully leverage nonferrous material recovery.

“Before, to export in containers, we had to process the material multiple times to achieve the required density,” Pagán says. “Even then, it was considered HMS, and the price couldn’t compare to what we achieve now by selling the material as shredded scrap. As for nonferrous recovery, until we started shredding, we couldn’t fully utilize our downstream system.

“Looking back, investing in a hammermill shredder was a pivotal decision—one that reshaped our entire operation. By improving efficiency, increasing profitability and opening new market opportunities, what once felt like a major risk has proven to be the smartest move for our long-term success. With the THOR 6363 K in place, we’re confident that Talleres de Reciclaje de Metales Inc. is now equipped to scale further, embrace new opportunities and thrive in an ever-evolving industry. For any yard looking to take that next step, I strongly recommend reaching out to ZB Group—their expertise, support and innovative solutions have been invaluable in making this transition a success.”