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Metalico to Locate New Shredder at Former Bethlehem Site
02/22/2011 - Metalico has purchased a portion of the former Bethlehem Steel/Mittal complex in Western New York, including the abandoned galvanizing mill, as the site for a new shredder.
Metalico, Inc. has purchased a portion of the former Bethlehem Steel/Mittal complex in Western New York, including the abandoned galvanizing mill, from Great Lakes Industrial Development LLC as the site for a new shredder.
Metalico plans to install a heavy-duty 80104 Metal Shredder inside the 44-acre parcel’s 177,500-square-foot building, which will still have ample additional space for other recycling activity. The location is appropriately zoned for the company's contemplated use and approvals are in place for outdoor storage and processing of scrap metals.
The planned scrap metal shredder will be suitable for processing 100 to 120 tons per hour of shredable scrap. The installation will include a new state-of-the-art downstream separation system to maximize recovery of valuable non-ferrous products.
Metalico expects to produce 120,000 tons per year of high quality shredded steel scrap by combining feedstock generated from its own yards and material available for purchase in the region. The company looks to satisfy growing demand for shred from electric arc furnace mills, export markets and other consumers.
At current commodity metal prices, the shredder is estimated to generate more than $50 million in annualized sales when it achieves full commercial operation. It is expected to be operational by the end of the year.
Metalico has been operating in Buffalo since 1998 and believes that the market is underserved for shredding capacity. With its leading market share, the company is the region’s largest local generator of scrap tin, light iron and appliances for recycling. At present more than two-thirds of shreddable scrap regularly leaves the area; once the new shredder becomes operational, a portion of the company’s feedstock that currently goes to a company-owned facility in Pittsburgh will be kept local when the.
The company expects to make a capital investment of more than $10 million to acquire the property, plant and support equipment and related improvements for the shredder project. Metalico expects the new facility to generate fifteen to twenty new permanent jobs in addition to construction and installation work. The company also plans to add two more scrap-buying centers in the area to better supply the shredder and to be less reliant on traditionally more expensive third-party feedstock.
Metalico, Inc. is a holding company with operations in two principal business segments: ferrous and non-ferrous scrap metal recycling, and fabrication of lead-based products. Metalico currently operates twenty-six recycling facilities in New York, Pennsylvania, Ohio, West Virginia, New Jersey, Texas, and Mississippi and four lead fabricating plants in Alabama, Illinois, and California.
