Scrap Industry News

PHILIP SERVICES EMERGES FROM CHAPTER 11

Philip Services Corp. has announced that it has emerged from Chapter 11 bankruptcy and has completed financial reorganization. “We have emerged with a renewed financial stability and the strength of over 12,000 employees, a service network that spans North America, and a loyal client and supplier base,” says Anthony Fernandes, president and CEO of the newly restructured company.

Philip Services has sold its U.K. metals recycling and mill services business to Simsmetal Limited for about $48 million. The UK metals business operates from 20 locations mainly in southwest England and Wales, including 14 scrap collection and processing yards and five shredding and processing facilities.

INTERNET COMPANY ATTRACTS INVESTOR

Aluminium.com, an online marketplace for aluminum trading, has announced that Divine InterVentures Inc. has invested $19.25 million in the company. Divine InterVentures is a Chicago-based Internet operating company engaged in e-commerce. Other companies that have also invested in the trading site include Bear Stearns, Metropolis Venture Partners, Wellfleet Partners and others in a $25 million third round of funding.

“Our partnership with divine InterVentures allows us to continue our aggressive plans for establishing a reliable and customer-focused online marketplace to eliminate inefficiencies that exist in today’s fragmented nonferrous marketplace,” says Alan Kestenbaum, president and CEO of New York-based Aluminium.com.

STEEL RECYCLING TREND CONTINUES TO RISE

The Steel Recycling Institute (SRI), Pittsburgh, has reported that 1999 recycling rates for steel packaging, appliances and construction materials came close to reaching the record levels set in 1997.

A decrease in steel imports along with increased U.S. production led to the upward trend in recycling rates in 1999 and will continue to keep steel recycling rates on the rise, says Jim Woods, manager of communication for SRI.

“As long as we can increase production by working with mills, there will continue to be a demand for steel scrap.”

According to SRI, the 67 million tons of steel recycled last year equals about 1.25 times the total amount of aluminum, paper, glass and plastic that was recycled. Woods cites the ease with which steel is separated from other materials at MRFs as the main reason that steel is recycled more than any other material. He also says that technology continues to come up with newer and better ways to use steel scrap.

Also on the rise in 1999 was the steel can recycling rate, which advanced to 57.9%, as more than 1.5 million tons of steel packaging was recycled. The 39 million appliances that were recycled last year helped that rate climb to 77.3%.

In the construction recycling industry, steel plates and beams were recycled at a rate of 95% and rebar and other steel construction material posted a recycling rate of 45%. Woods attributes these numbers to the value placed on the scrap.

“It is now becoming standard practice that construction and demolition bids include recycling because steel scrap is so valuable,” Woods says.

When comparing the number of automobiles taken off the road in 1999 to the number of new cars being manufactured, SRI found that vehicles were recycled at a rate of 91.2%, with more than 13 million end-of-life vehicles being recycled. This created more than 14.2 million tons of steel, which Woods says is the highest tonnage of steel captured from automobile recycling since the SRI started tracking auto recycling in 1992. Woods says he expects these numbers to stay on the rise.

“No cars will ever be dumped into a landfill because there’s value in the parts,” says Woods. “

SRI, located in Pittsburgh, not only works with steel mills to help increase the recycling rate of steel, but it also establishes relationships with government offices, retail outlets and manufacturers. More information about recycling can be found at the Steel Recycling Institute’s webpage at www.recycle-steel.org.

GIE MEDIA NAMED TO FOLIO TOP 40 LIST

GIE Media Inc., Cleveland, the privately-held publisher of Recycling Today and other business magazines, has been named to The 2000 Folio: 40, a list of the fastest growing companies in the magazine industry.

GIE also produces directories, conferences and trade shows, custom print communications, vertical market Internet portals and related e-communications products and services.

The 2000 Folio: 40 rankings appeared in the April 15, 2000 issue of Folio Magazine, a monthly trade journal for the magazine publishing industry, and selection was based on ranking the companies’ aggregate growth between 1997 and 1999. This was the first time GIE Media was named to the list.

“Our addition to The Folio 2000: Top 40 underlies our continuing commitment to expanding our service offerings to our customers and the dedication of our employees to driving our business efforts to the next level,” says Richard Foster, president and CEO of GIE Media.

Other companies making the Folio list include Times Mirror Magazines, Time Inc., American Express Publishing, and Cahners Business Information.