Scrap Industry News

Shareholders for Metal Management, based in Chicago, have agreed to the company’s merger with Australia-based Sims Group in March. Metal Management was valued at $1.6 billion, according to the deal’s terms.

The combined company will have more than 200 operations and annual revenue of more than $8.5 billion.

With the acquisition, Jeremy Sutcliffe has stepped down as the CEO of Sims Group. He remains an executive director until at least October and chairs the company’s European and Australian metals recycling businesses as well as Sims Recycling Solutions business globally.

Daniel Dienst, Metal Management CEO, assumes the chief executive role for the merged entity and chairs the combined North American metals recycling business.

Sims shareholders will vote to change the company’s name to Sims Metal Management Ltd. at an annual general meeting in November. Until then, the merged company will trade in North America under the name Sims Metal Management.

Alter Trading, St. Louis, has acquired the assets of SCI Recycling, including three facilities in Anoka, Minn.; Hayfield, Minn.; and Mason City, Iowa. The Anoka yard features an auto shredder.

"This is a wonderful opportunity for Alter to expand further in the Twin Cities area as well as in Iowa," Robert Goldstein, CEO and president of Alter, says.

Tim Bernstein, vice president of operations, will be responsible for the Anoka and Hayfield yards, and Tim Rosengren will serve as the regional manager for those locations. Bob Rosencrants, vice president of operations, will assume responsibility for the Mason City yard.

With the new acquisitions, Alter operates 35 scrap handling yards as well as a number of brokerage and sales offices.

The Institute of Scrap Recycling Industries Inc. (ISRI) Gulf Coast Chapter 2008 Summer Convention and Exposition is scheduled for June 19-21 in San Antonio at the Westin La Cantera Resort, located 20 minutes from the River Walk and the historic Alamo.

In addition to the Fourth Annual Gulf Coast Clambake Reception, the 2008 ISRI Gulf Coast Chapter Summer Convention features presentations by noted speakers. Session topics include "The Globalization of the Scrap Industry" and "How Scrap Theft Legislation Affects our Industry."

The Gulf Coast Chapter of ISRI also holds its board of director’s meeting and general session in conjunction with the conference.

The convention provides ample opportunities for networking, as well, including this year’s RRF William A. Bushman Golf Tournament, which is at the championship 18-hole Resort Course at La Cantera, home of the PGA Tour’s Valero Texas Open.

Reservations at the Westin La Cantera Resort can be made directly with the hotel at (800) 228-3000 by May 23 to receive the discounted room rate of $199 per night, plus taxes.

Exhibitor and registration forms for the event are available at www.gulfisri.com or by contacting Convention Chair Gene Day at gday@hobbsiron.com, Yolanda Aranda at yaranda@hobbiron.com or Pati Minnick at pminnick@hobbsiron.com.

Joseph Smith & Sons Inc., Capitol Heights, Md., and European Metal Recycling Ltd. (EMR), based in the United Kingdom, have created a joint venture to market scrap that will be exported from the Port of Baltimore.

The companies will work with a Delaware-based stevedoring firm to operate from a 27-acre location at the Port of Baltimore.

Scrap metal and other commodities will be shipped into and out of the site.

One of the operation’s goals will be to offer an additional market for scrap recyclers based in the United States who wish to export from the East Coast.

Additionally, the stevedoring operation at the port will seek to work with exporters and importers of materials other than scrap.

Blaze Recycling & Metals LLC, headquartered in Norcross, Ga., has reorganized, creating a holding company. As part of the reorganization, the owners of Blaze Recycling & Meals have swapped their equity in the company to identical ownership interests in Blaze Metals LLC, the newly created holding company. With the move, Blaze Recycling & Metals becomes a wholly owned subsidiary of Blaze Metals LLC.

Following up on the change in corporate structure, the Norcross firm has acquired Ocala Recycling, an Ocala, Fla.-based scrap recycler. Ocala Recycling will also become a wholly owned subsidiary of Blaze Metals LLC. Richard and Michael Bianculli, the previous owners of Ocala Recycling, will remain with the company and have received equity in the holding company.

Ocala Recycling has been involved in the recycling business for more than 15 years. The company operates two scrap yards and two smaller feeder facilities in the Ocala area. The company also recently completed the development of an auto shredder that became operational in the third quarter of 2007.

Ocala has the capacity to process approximately 15,000 tons per month.

Craig Blase, co-president and co-CEO of Blaze Recycling says, "The Bianculli family has done an excellent job building their business, and their new shredder means the Blaze family of companies commands an even larger share of the scrap supply in the Southeast."

Blaze operates four scrap yards in Georgia and one in Alabama. In addition to the shredder being installed at its Phenix City plant, Blaze also operates a shredder at its Lawrenceville, Ga., yard.

With the addition of Ocala’s shredder, as well as another shredder that Blaze is installing at its Phenix City yard, Gary Blase, co-president and co-CEO of Blaze Recycling, says the company will have the capacity to shred and shear about 90,000 tons of material per month.

Integrity Metals Inc., a scrap metal recycling firm based in Connerville, Ind., has received approval by the Morristown, Ind., Planning Commission to build a site in the city. Price Glazer, president of Integrity Metals, says that the new yard will be on 15 acres and will include an American Pulverizer auto shredder.

After the Morristown Planning Commission approved the move by Integrity, the commission held an open meeting for public comments. The final approval for the new facility was granted April 2.

Glazer says the auto shredder installation should be complete by next fall and should allow the company to handle an additional 3,000 to 4,000 tons of scrap metal per month.

According to local press reports, city planners gave the design for the new facility high marks.

Additionally, with controversy swirling over the Sturgis Iron auto shredder in Elkhart, Ind., several parties expressed concerns about noise and other pollution generated by the shredder. However, Glazer noted that the auto shredder was far smaller than the one installed at the Sturgis yard.

Integrity was unsuccessful last fall in its attempt to locate on Shelbyville’s north side. City officials had traveled to Texas to evaluate a similar facility and returned with unfavorable opinions.

According to an article in the Shelbyville (Indiana) News, the engineering report concluded that the potential noise levels will be "well within standards" established by the Indiana Department of Transportation and the Federal Aviation Administration.