Schnitzer Steel Industries, Inc. has purchased a state-of-the-art Metso Texas Shredder 122x108 for its Portland, Ore., metals recycling operation.

The new shredder, which is equipped with a 7,000 horsepower motor, will nearly double the operation's metal shredding capacity, currently 250,000 tons per year, to approximately 480,000 tons per year. The new shredder is expected to increase total energy consumption by only 10%. It will replace equipment that has been in place since the early 1970s.

As part of the upgrade, Schnitzer Steel will also install a new electric substation and 115 kV transmission line, as well as a downstream ferrous metals recovery system with a design output capacity of 40,000 tons per month. Schnitzer Steel's investment in these upgrades will total more than $14 million.

"As Schnitzer Steel prepares to enter its 100th year in business — a business founded in Oregon — we are making considerable re-investments in our Portland metals recycling operation to enhance its position as a leading West Coast metals processor and recycler. These investments will significantly increase the production capacity and cost efficiency of our operations, allowing us to recycle considerably more metal at a lower cost per ton," stated Jim Goodrich, General Manager for Schnitzer Steel's Portland metals recycling operation. "We look forward to the direct benefits these investments will provide for our customers and suppliers, our community, and our 122 talented and valued employees."

Schnitzer Steel's Portland operation is currently rebuilding its dock on the site and upgrading its ship-loading crane. Schnitzer Steel's marine terminal operation is adjacent to a 40-foot-deep navigation channel that provides ready access to world markets.

Additional, significant capital improvements planned for 2006 include the installation of state-of-the-art mega-shredders at the company's Oakland, Calif., and Everett, Mass., facilities, and the initiation of induction sorting systems at its Oakland; Tacoma, Wash.; and Johnston, R.I., facilities to recover increased volumes of nonferrous metals from the shredding process. These projects, and others, will substantially increase the company's capacities, improve operational efficiencies and capabilities, and reduce energy consumption, while meeting commitments to workplace safety and environmental quality.

Schnitzer Steel Industries is one of the nation's largest recyclers of metals, a used auto parts retailer with more than 50 locations across the U.S. and in Canada, and a manufacturer of finished steel products. The company has a significant metals recycling presence on both the West Coast and Northeastern seaboard, as well as a trading business that principally sells recycled metal products in foreign markets. In addition, the company's steel mill — Cascade Steel Rolling Mills — has an annual production capacity of approximately 700,000 tons of finished steel products.