MetalX signs supply agreement with aluminum casting firm

MetalX signs supply agreement with aluminum casting firm

Indiana-based recycler will supply scrap sourcing services to Busche Performance Group.

Subscribe
January 16, 2018
Edited by Brian Taylor
Financial Nonferrous

Waterloo, Indiana-based MetalX has announced signing an agreement with Busche Performance Group (BPG) to assume responsibility for sourcing all aluminum raw materials for BPG foundry operations.

Effective at the start of 2018, MetalX has “assumed responsibility for management of all activities related to the sourcing, procurement, delivery and administration associated with aluminum scrap and refined aluminum products consumed and generated by BPG’s aluminum foundries,” according to a news release issued jointly by the two companies.

The BPG foundries will maintain direct responsibility for payment to suppliers, the establishment of material specifications and governing terms and conditions, according to the two companies.

BPG describes itself as one of the largest vertically integrated casting and machining suppliers of vehicle chassis components in North America. The $400 million company produces aluminum castings and other components found in automotive systems such as chassis, suspension, engine and driveline systems, and in the agricultural, construction, industrial and refrigeration sectors. The company employs nearly 1,500 in people at 15 facilities in Indiana, Michigan, Alabama and in Mexico.

“This agreement will allow the foundry division to be better connected to the aluminum markets and gain significant benefits from the MetalX team’s expertise with buying and selling of aluminum raw materials in the metals marketplace,” says Daniel J. Dressler, vice president of procurement and business development at BPG. “This will also allow BPG foundries to focus on growing their foundry operations and ‘partner’ with a highly regarded metals recycling and trading company that already has demonstrated performance with managing scrap for all of our U.S. machining facilities.”

BPG founder, President and CEO Nick A. Busche adds, “The Rifkin family and MetalX have been an extraordinary resource for us the past several years. They have provided the metals management expertise that BPG needed to continue its aggressive growth in all segments of our business. This new metal procurement relationship with our aluminum foundries will provide even greater synergies and growth opportunities to serve our customers.”

Danny Rifkin, MetalX president and CEO, remarks, “This strategic partnership is the result of a joint effort to develop a sourcing model that will allow BPG’s foundries to concentrate on the design and manufacture of aluminum castings for critical applications, and at the same time benefit from the savings that will arise from a comprehensive metals management strategy. We believe that our ability to access a much broader supply base will ensure consistent availability of quality raw materials to support Busche’s dynamic growth plans.”

MetalX will be sourcing approximately 35,000 tons per year of high-purity low-iron A356 aluminum alloy and indicates it will seek to develop additional suppliers including scrap processors, secondary producers and industrial generators. Brian Rosenblatt at MetalX will serve as the contact person for interested suppliers.

MetalX is a privately held, independent scrap metal recycling business founded in 2012 by Danny and Neal Rifkin, third- and fourth-generation members of the Rifkin family.

MetalX describes itself as a full-service scrap metal recycling company engaged in recycling, processing and trading scrap and secondary metals, as well as providing consulting and management services to industrial companies in North America. The company employs more than 200 people in six locations in Indiana, Ohio and Nevada.