ZB Group technology helps metal recyclers face the future

When Jeff Cammllarie decided to settle in Atlanta and opened Amerigo Metals in 2009, his intention was to open a few retail sites and do some brokerage business. Entering the shredding business was far from his mind.

“My plan was to open a few feeder yards, maintain solid margins and become a reliable supplier upstream,” he says.

However, by 2014, the consolidation of the metal shredding and recycling market required a different business model.

With more than 40 years of experience in the scrap industry, Cammllarie's career has spanned diverse roles, from managing a large corporation to establishing operations and trading posts overseas. Now, he faced a critical question: how to retain control over his profitability in a changing landscape.

Making a commitment to shredding

“As the market tightened in 2014, it became evident that surviving solely as a feeder yard was no longer viable for us—I needed to vertically integrate and start shredding,” Cammllarie says.

Having worked with several equipment manufacturers in the past, he was particularly drawn to the innovative mobile shredding units developed by ZB Group. A Spanish family-owned company with more than 40 years of experience in designing and manufacturing shredding and crushing equipment, ZB Group was the first to introduce a mobile hammer mill shredder to the North American market in 2013.

“The feeder yard model has historically been profitable, but in today’s more consolidated and competitive market—especially in the Southeast—it’s no longer a guarantee,” Cammllarie says. “To remain healthy and competitive, you must maximize the value of your scrap. Producing finished products that can ship mill direct strengthens your position. Understanding the mill’s needs (for density, cleanliness and even low residuals) is crucial, and, it’s a two-way street. The better and more reliably you service them, the stronger the relationship becomes and the more they will consider your scrap when times are tough.”

Cammllarie reached out to ZB Group in the summer of 2014.

“Their quick response and willingness to tailor a solution impressed me,” he says, noting that by the spring of 2015, his THOR 8080 mobile hammer mill was up and running in his yard. “We started with a modest budget and gradually scaled up our operation alongside our partnership with ZB.”

The initial setup featured the THOR 8080 hammermill powered by a 2,100-horsepower (hp) diesel engine. After three years, Cammllarie expanded his operation with ZB’s PSZB-8360 low-speed, high-torque preshredder.

“The preshredder boosted mill productivity by about 40-50 percent while reducing wear and tear on both the mill and motor (we experienced about a 20 percent increase in hammer life) by feeding homogenous semiprocessed material," he says. "It’s an invaluable upgrade for anyone handling significant quantities of autos, low-density bales or sheet.”

One of the most positive surprises of adding the PSZB-8360 preshredder was that it has a comparatively low maintenance and operational cost. Unlike high-speed, low-torque preshredders or even rotary shears, Cammllarie says Amerigo only worries about basic preventive maintenance and about 10 hours of hard facing for every 4,000 gross tons the company preshreds. For the amount of work the machine does, it requires very little work.

The ZB return on investment

This first step into the shredding business allowed Amerigo Metals to steadily grow and expand, first by acquiring Georgia Metal Recyclers in 2018 as a feeder yard to support Amerigo’s operation. Then, in 2021, Amerigo opened Shredded Metal Trucking (SMT) as its logistical arm, operating 14 trucks, dumps, open tops, car haulers and roll-offs.

Operating in a densely populated area, explosions are not only a safety and fire risk but draw unwanted attention from the authorities and neighbors. Although the preshredder had reduced the risk, smaller 20-pound propane tanks sometimes bypassed the venting process.

So, in 2022, ZB’s engineering team collaborated with Cammllarie to redesign the shaft distribution, improving the venting process for these problematic tanks.

“This level of personalized attention and care is what sets ZB apart,” he says.

By 2023, Amerigo needed to expand its capacity and upgraded to a top- and bottom-discharge mill and converted to a 2500 hp electric drive with a variable frequency drive (VFD), which has increased production capacity to more than 12,000 tons per month.

Working with an overseas manufacturer initially raised concerns about local postsales service availability.

“However, both ZB’s team in the United States and in the factory in Spain have been incredibly responsive,” Cammllarie says.

“They use a messaging app that helps overcome any time difference, and our maintenance team has access to both technicians and engineers pretty much any time. We are especially lucky because their U.S. warehouse and service team are a mere 20 minutes away from the yard, so we can always run over when we’re in a pinch.

“Other than that, they have always promptly assisted us remotely to resolve most issues or dispatched technicians, when necessary. There have been challenges, but ZB has consistently taken ownership and ensured timely resolutions. Their dedication has solidified our trust in this partnership.

“For success in this business, understanding your conversion costs is key—how much it takes to process feed material into finished products. For our size, in this market, being a high-quality, low-conversion cost operator is what allows us to grow.”

Regarding his equipment choices, Cammllarie says, “Our THOR 8080, paired with the PSZB-8360 preshredder, achieves over 80 tons per hour with a smaller mill and motor size than traditional setups. The investment level combined with the output achieved is hard to beat; it allows us to maintain a lower conversion cost, which improves our competitiveness.

“I’d really encourage any small-medium feeder yard facing a tough market outlook to reach out to ZB group and see what solutions they offer for their specific situation. I know it was the right choice for us, and I know it would be for many others.”