FPT MAKES CLEVELAND ACQUISITION
Ferrous Processing and Trading Co. (FPT), a Detroit-based scrap metal company, has acquired M. Weingold & Co., a Cleveland-based scrap metal recycling firm.
FPT, which operates a dozen scrap yards in North America, processes nearly 2.5 million tons of scrap metal per year. Most of the company’s locations are in Michigan, with some yards in Ontario and a location in Cleveland.
Howard Sherman, president and CEO of Ferrous Processing, says, "This move strengthens Ferrous Processing and Trading’s ability to serve its customers throughout the region and opens the door to new opportunities for us in Cleveland and surrounding markets."
He adds, "When Ferrous Processing and Trading Co. was made aware of the opportunity to acquire the assets of M. Weingold & Co., we recognized that this leader in the Cleveland marketplace would be an excellent fit with our Ohio business platform."
OmniSource Acquires Mervis Yards The acquisitions will add nearly 100 employees to OmniSource’s staff of more than 2,000, the company says. "These acquisitions will enhance our ability to serve our existing customer base in central Indiana and offer our services to an expanding universe of new customers throughout the central and southern parts of the state," says Danny Rifkin, OmniSource’s president and chief operating officer. "Moreover, completion of the transaction will allow us to consolidate the Indianapolis operations as a wholly owned business unit as we begin 2007," Rifkin adds. OmniSource Corp. is one of North America’s largest scrap metal companies, with annual sales of $2.5 billion and 42 facilities in the Eastern United States and Canada.
According to FPT, its acquisition of the M. Weingold & Co. assets underscores its strategy of growing in the Great Lakes region through acquisition and organic means.
OmniSource Corp., Fort Wayne, Ind., has announced the acquisition of Mervis Industries’ facilities in Kokomo and Tipton, Ind., as well as that company’s minority interest in two joint ventures—Capitol City Metals in Indianapolis and Recovery Technologies in Fort Wayne.
This move by FPT is one of several recent industry acquisitions in the Midwest region.
SIMS GROUP ANNOUNCES MORE DEALS
Sims Group, the largest metal recycling firm in the world, has announced several deals that it hopes will continue to grow its metals business.
In the first deal, Sims has announced the acquisition of Cymru Metals Recycling, South Wales, U.K., a ferrous and nonferrous metals recycling facility. The acquired company handles more than 150,000 metric tons of metal per year. The acquisition follows Sims’ goal of expanding its metals recycling business in fast growing areas. Sims says the purchase will complement its scrap recycling network in the United Kingdom.
Cymru Metals operates several facilities, some of which have direct export capabilities. Additionally, Cymru is an authorized treatment facility for end-of-life vehicles, handling around 50,000 vehicles a year.
"The acquisition of Cymru Metals Recycling expands Sims’ presence into West Wales and strengthens our position as a leading U.K. metal recycler," Tom Bird, managing director of Sims Group U.K. Metal Recycling Division, says. "Cymru Metals Recycling will make a significant contribution to the ongoing development of our U.K. business."
Sims also has announced plans to acquire Menzies Metals, in the Melbourne area. Darron McGree, managing director of Sims Group Australia & New Zealand says the acquisition "significantly strengthens Sims Group’s catchment in the area and allows us to offer a greater range of services to our regional customer base."
Finally, the company has completed the acquisition of Maroochy Steel, a steel distribution business servicing the coastal area of Queensland, Australia.
In addition, Sims Group Australia is building a metals recycling facility in Maroochydore. The site has all approvals in place and expects to be operational during the second half of fiscal 2007, according to the company.
SHIP LINE CALLS FOR RATE HIKE
The 11 transpacific shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) are recommending that metal scrap freight rates be increased this year.
ALTER PURCHASES SAMUELS RECYCLING Alter Trading, headquartered in St. Louis, has acquired Wisconsin-based Samuels Recycling Co. Samuels Recycling employs 250 people and has seven locations in the Wisconsin area that provide ferrous and nonferrous metal recycling. With the acquisition, Alter will now operate 28 scrap metal recycling facilities and five trading offices in seven states, as well as a sales office in China. "This acquisition will only serve to enhance Alter’s commitment to our consumers, our employees, the environment and to the communities in which our facilities are located," Robert Goldstein, CEO and president of Alter Trading Corp., says. "The dedication, integrity and commitment to quality that can be found at each Samuels Recycling location complements Alter’s own high standards." Alter Trading is ISO 9001:2000 and 14001:2004 certified.
Effective Feb. 15, WTSA member lines say they will raise metal scrap rates by $100 per 40-foot (FEU) container and $80 per 20-foot (TEU) container on port-to-port cargo and West Coast/East Coast local door moves to Asia and by $150 per FEU and $120 per TEU for inland point or mini-land bridge intermodal cargo.
Despite strong demand for scrap in Asia, rates remain low to the point that some carriers have stopped soliciting scrap shipments to some destinations—most notably in China—because the rates do not cover transport, equipment and cargo handling costs.
Explore the February 2007 Issue
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