MARAD SIGNS CONTRACTS
The U.S. Department of Transportation’s Maritime Administration (MARAD) has signed contracts for the disposal of four ships from the Suisun Bay Reserve Fleet at Benicia, Calif., bringing the number of ships that have left the facility for recycling since October 2005 to nine.
The ships destined for destruction, the Hannibal Victory, the Barnard Victory, the Occidental Victory and the Sioux Falls Victory ships, are World War II-vintage.
Before being towed from the fleet, the vessels will be inspected by an independent party. In addition, they must meet extensive Coast Guard and international regulations regarding environmental safeguards, seaworthiness and watertight integrity.
"We continue to demonstrate our commitment to remove these obsolete ships from our fleet," Acting Deputy MARAD Administrator Julie Nelson says. "We are recycling them in a way that respects their history and maintains the highest safety and environmental protection standards."
Marine Metal Inc. of Brownsville, Taxas, will dismantle the Hannibal Victory and the Sioux Falls Victory under the terms of contracts, each worth $979,000. All Star Metals Inc., also of Brownsville, will dismantle the Barnard Victory for and the Occidental Victory for approximately $1.2 million each. The steel recovered from the ships will be recycled.
TUBE CITY ISSUES IPO
Scrap recycling company Tube City IMS, based in Glassport, Pa., is looking to raise $172.5 million in an initial public stock offering on the Nasdaq market under the symbol "TCMS."
According to a report in the Pittsburgh Tribune Review, in its filing with the Securities and Exchange Commission, Tube City says that it will use the money it raises through the IPO to pay undisclosed debt as well as for general purposes.
Credit Suisse, Jeffries & Co. and UBS Investment Bank will underwrite the offering, the Pittsburgh Tribune Review reports.
David Coslov founded Tube City in 1926 as Tube City Iron & Metal Co. Mill Services Holdings LLC, an affiliate of Wellspring Capital Partners, acquired the company in 2004.
Tube City IMS has operations at 67 mill facilities through the United States, Canada and Europe.
ISRI CELEBRATES FORMATION OF CONGRESSIONAL RECYCLING CAUCUSES
The Institute of Scrap Recycling Industries Inc. (ISRI), based in Washington, D.C., has claimed success with the formation of the Senate Recycling Caucus.
In early June, co-chairs Olympia J. Snowe (R-Maine) and Thomas R. Carper (D-Delaware) circulated a "Dear Colleague" letter to fellow senators inviting them to join the newly formed Senate Recycling Caucus. According to a press release from ISRI, "The letter promotes concepts identical to the primary objectives of ISRI’s Government Relations efforts: improving the quality and quantity of recyclable materials, developing new markets for recycled products, Design for Recycling and capitalizing on the energy savings achieved through the use of recycled materials."
The House Recycling Caucus, formed earlier this year, is co-chaired by Rep. Paul Gillmor (R-Ohio) and Rep. Frank Pallone (D-New Jersey).
ISRI President Robin Wiener says, "Earlier this year, ISRI celebrated the successful creation of the House Recycling Caucus. With the distribution of this letter in the Senate, we can now celebrate success throughout Congress." She adds, "We worked with the co-chairs to establish these caucuses as a means to provide a more formal structure to educate members of Congress about recycling at all levels, to promote both consumer and industrial recycling and to help our representatives develop legislation that improves our environment, reduces energy use and expands the marketplace for U.S. recycled products, including scrap metal, paper, plastic, glass, textiles, rubber and electronics."
Weiner continues, "We saw the need to educate members of Congress—to let them know that scrap is not waste, but a valuable commodity and a $30 billion-plus industry essential to the U.S. and the world economy." She adds, "We are thrilled with the response of Congress to this effort and are grateful for the leadership of Senators Snowe and Carper."
In July, ISRI held a congressional fly-in, bringing members to Washington to meet with their senators and representatives to urge them to join their respective recycling caucuses.
ONESTEEL TO BUY SMORGON
Australian electric arc furnace (EAF) steelmaker Smorgon Steel Group Ltd. is being purchased by steel products maker OneSteel Ltd., also an Australia-based company.
According to a Bloomberg report, OneSteel has agreed to pay more than $1.5 billion (Australian) for Smorgon’s assets and operations, which include scrap processing facilities and EAF furnaces.
Smorgon’s board of directors has unanimously recommended the offer to shareholders, with a vote scheduled for October.
OneSteel makes and distributes tubes, pipes and other steel products for construction, automotive and other applications, producing about 1.7 million tons per year of steel products.
Smorgon makes more than 900,000 tons of new steel, predominantly using scrap as a feedstock. It has scrap processing facilities in Australia as well as in Virginia and Florida.
Smorgon recently announced that it has acquired a 20 percent stake in Suntech Metals Co., a Thailand-based subsidiary of metal recycling company Suntech Group.
In the deal, Smorgon takes day-to-day operational control of Suntech Metals’ operations and trading.
"Although Suntech Metals handles only minimal amounts of nonferrous material, it will complement the existing presence in Thailand of Smorgon Hartwell Recycling, which is an active participant in both the nonferrous and stainless steel scrap markets," the company states in a release.
Suntech handles around 170,000 metric tons of ferrous scrap per year and is located near several major steel-making operations and major deep-water port facilities.
Also, Smorgon has announced that it has leased land in Darwin in Australia’s Northern Territory where it will establish a metal recycling facility. This facility is expected to open by the end of the summer.
The company also is leasing a four-acre site in Auckland, New Zealand, and has begun constructing a metal recycling yard. This facility, which will open in August and reach full operation by October, will process ferrous and nonferrous scrap metal.
Finally, Smorgon has opened a trading office in Hanoi, Vietnam, expanding its existing network of trading offices in China, India, New Zealand and the United Kingdom.
PACIFIC STEEL & RECYCLING UPDATES LOGO
Pacific Steel & Recycling, a steel service center and scrap metal recycler, has introduced a new logo.
According to a press release from the company, "The launch of the new logo and signage will position Pacific Steel & Recycling as the industry leader, as well as represent its steady progression and vision for the future."
The company plans to convert signage and other marketing materials within the next six to 12 months.
Pacific Steel & Recycling is headquartered in Great Falls, Mont., and has nine steel service centers, 18 steel distribution centers and 27 recycling centers throughout the Northern Rocky Mountains and Northern Plains.
NUCOR TO BUILD BAR MILL IN SOUTH
Nucor Corp., Charlotte, N.C., has announced plans to construct a special bar quality (SBQ) products steel mill in the Southern United States with an estimated capacity of 850,000 tons.
The facility will produce high-quality carbon and alloy rounds and round-cornered squares from 3 inches to 9 inches in size for the automotive, heavy equipment and service center markets.
Nucor is currently considering several locations for the new mill. Construction is expected to begin after resolution of the location, regulatory approvals, tax matters and various contracts.
"This is a great opportunity to position Nucor as a market leader in special bar quality products," Daniel DiMicco, Nucor’s chairman, president and CEO, says. "We have consistently said over the last six years that we would not build a greenfield steel mill unless we could take advantage of a unique market niche and/or a significantly better cost structure compared to the competition. This project definitely fits that strategy."
D. Michael Parrish, executive vice president of Nucor, says, "I’m very excited about this project because it complements our Nebraska SBQ Mill and gives us one of the most diverse SBQ product offerings from 7/32-inch to 9-inch rounds, all with a minimum of 5:1 reduction ratio. It really puts an emphasis on quality with bloom casting and vacuum degassing."
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