Scrap Industry News

Carolinas Recycling Group LLC (CRG) and Atlantic Scrap and Processing LLC have agreed to merge into a consolidated entity that is expected to handle more than 1.2 million tons of ferrous scrap and 230 million pounds of nonferrous scrap annually

The transaction is expected to close in the first quarter of 2007, subject to conditions. The merger will create a scrap processing company that will employ more than 500 people in 16 locations throughout the Carolinas and Georgia.

The names of both companies are expected to remain in use, with the CRG name remaining prominent in South Carolina and the Atlantic Scrap & Processing name being used in most of North Carolina. "Both companies have strong brands in their regions," says Marvin Siegel, CEO of CRG.

The merger will help set in motion plans for continued growth and investment, according to Siegel. He adds, "This merger is a perfect fit, as both companies share such similar management styles and operating philosophies.

Frank Brenner, president of Atlantic Scrap, says, "In the five short years since the inception of Atlantic Scrap & Processing LLC, I have seen our business develop into the largest recycler in North Carolina. We are excited to be merging with CRG, who we feel shares the same ideals as Atlantic Scrap. We look forward to this merger and to continued growth and success."

Brenner adds that the company’s new shredding plant, located near a deep water dock on the Cape Fear River in Wilmington, N.C., is expected to go online by the end of the year.

The Matteo & Sons Inc. site in New Jersey’s Gloucester County has recently been added to the U.S. Environmental Protection Agency’s Superfund National Priorities List of the country’s most contaminated sites.

Tests at the site revealed significantly elevated levels of lead and PCBs in surface soil, according to the EPA.

"When investigating the Matteo site, we discovered a dangerous source of lead contamination from crushed car batteries that could possibly impact nearby homes," Alan Steinberg, EPA regional administrator, says.

The New Jersey Department of Environmental Protection (NJDEP), the EPA and Matteo & Sons, have each conducted investigations at the site. NJDEP conducted sampling at the site from September 2000 to October 2002. EPA investigated the property in 2005 and 2006, revealing crushed battery casings and lead contamination adjacent to a nearby trailer park. These investigations also documented extensive contamination of wetlands that could impact downstream fisheries.

EPA and Matteo & Sons have fenced off areas with high levels of lead and removed contaminated soil in certain areas of the trailer park to protect residents.

Xstrata Builds Recycling Plant

Xstrata Nickel has started construction of a new recycling plant at its Sudbury, Ontario, smelter.

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When complete, the plant will more than double Xstrata Nickel’s existing recycling capacity. The cost of the project is around CAD $21.4 million (USD $19.4 million).

"In alignment with Xstrata Nickel’s focus on growth, this expansion gives us the capacity to profitably take in a wide variety of feedstock, which represents a distinct competitive advantage in today’s metal recycling market," Mike Romaniuk, vice president of Xstrata’s Sudbury operations, says.

"Demand for cobalt and nickel recycling has significantly increased in recent years due to high metal prices and rapid technological advances, and we will now be better able to meet this customer need."

Xstrata Nickel reports that it has received all necessary environmental permits following a detailed engineering and pilot-testing phase, which it completed in mid-June of 2006.

Commissioning of the new plant, which will be operated and maintained by the commodity business unit’s current Sudbury employees, is scheduled for July 2007.

The Sudbury smelter has been actively recycling cobalt- and nickel-bearing materials since 1981. The operation treats and processes feed from worldwide sources.

Xstrata is based in Zug, Switzerland, and has operations in 18 countries, including the United States, Germany, Chile, Spain and Norway.