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Recycling Today Staff March 6, 2014

METALS

Pennex to expand Ohio aluminum extrusion plant

Pennex Aluminum Co., headquartered in Wellsville, Pa., has announced plans to undergo a $33 million expansion of its Leetonia, Ohio, aluminum extrusion facility. The project includes installing an extrusion press line and constructing a specialized fabrication production center as well as a 170,000-square-foot building expansion.

Pennex, a subsidiary of Metal Exchange Corp., a supplier, processor and purchaser of nonferrous metals that is headquartered in St. Louis., specializes in recycling industrial aluminum scrap. (Metal Exchange was profiled in the August 2013 issue of Recycling Today.)

Pennex says the project is expected to create 65 new jobs and to come online in late 2014.

“This expansion involves advanced technology that will provide unique capabilities to serve our customers,” Pennex President Dave Riebe says.

The Leetonia plant is TS 16949 certified and serves a range of automotive and engineered product requirements. (TS 16949 is a quality management system developed for the automotive industry and its supply chain.)

Rick Merluzzi, CEO of Pennex, says, “This significant investment reflects our unwavering commitment to serve our long-term customers and prospective customers.

To assist Pennex Aluminum with the expansion project, the state of Ohio has approved a 45 percent, six-year tax credit.

 

METALS

Alcoa to permanently close NY smelter’s remaining potlines

The aluminum company Alcoa, based in Pittsburgh, has announced plans to permanently close the remaining two potlines at its Massena East, N.Y., smelter by the end of the first quarter of 2014. The company says the potlines are not competitive.

Alcoa permanently closed the first of the three potlines at the facility in August 2013.

The company’s Massena West facility will continue to operate despite the closures.

Alcoa says the potline closures will reduce the company’s smelter capacity by 84,000 metric tons.

Including the closure of the two potlines at Massena East, Alcoa has announced closures or curtailments representing 361,000 metric tons of the 460,000 metric tons the company placed under review in May 2013.

Once the Massena East potline closures are complete, Alcoa says it will have total smelting operating capacity of 3.95 million metric tons, with about 655,000 metric tons of capacity having been idled.

 

METALS

MetalX earmarks $12 million for new yard

MetalX LLC, a scrap metal recycling company headquartered in Waterloo, Ind., has announced plans to open its newest facility in Auburn, Ind., near Fort Wayne, Ind. The company says it expects to invest $12.4 million to purchase, renovate and equip the 240,000-square-foot site in Auburn, which is located on 30-acres and includes main-line rail access.

MetalX says it expects to commission the first processing line at its Auburn facility in April, with plans to have the plant fully operational by this September.

The facility will allow MetalX to develop a consolidated nonferrous metal recycling and reclamation operation that can recycle more than 100 million pounds of nonferrous metals per year, half of which will be reclaimed from material streams previously going to landfills, the company says.

Danny Rifkin, president and CEO of MetalX, says, “We are pleased to confirm that we will locate our newest operation in Indiana, and in particular, in the city of Auburn. We recognize the effort that has been required on the part of the mayor and city council, the DeKalb County Economic Development Partnership and the Indiana Economic Development Corp. (IEDC) to work together with us on this project and are proud to continue expanding in our home state. Job creation is the foundation for a sound domestic economy, and we appreciate the assistance to help facilitate new Indiana jobs.”

Indiana Gov. Mike Pence says, “Indiana’s economy continues to operate with homegrown Hoosier companies as our foundation. They are responsible for significant job creation and are key to helping bolster the growth of our state. With our low taxes, best-in-the-nation workforce and central location, the Hoosier State has developed an ideal business climate, allowing companies like MetalX to stay close to home and making Indiana a state that works.”

The IEDC offered MetalX up to $725,000 in conditional tax credits and up to $40,000 in training grants based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, MetalX is not eligible to claim them.

The city of Auburn also approved additional incentives at the request of the DeKalb County Economic Development Partnership.

MetalX currently operates metal recycling and scrap processing facilities in Waterloo and Fort Wayne as well as a joint venture in Birmingham, Ala.

 

METALS

Upstate Shredding expands through acquisition

Upstate Shredding – Ben Weitsman, Owego, N.Y., continues to grow through acquisition, most recently announcing plans to purchase Capitol Scrap, Albany, N.Y. The company also has announced the asset acquisition of Jack’s Recycling, Mount Morris, Pa. As of press time, the all-cash transaction was expected to close by the end of February, according to Upstate Shredding.

“This is a great strategic move for expanding our reach throughout the Northeast, especially with our two new shredders being built in Albany and New Castle, Pa.,” Upstate Shredding owner Adam Weitsman says of the Jack’s Recycling acquisition. “We do not yet have a location in this region of the Northeast, so this acquisition is filling a great need to serve Mount Morris and the surrounding regions.”

According to Upstate Shredding, Jack’s Recycling, founded in 1962, is a significant processor of auto, ferrous and nonferrous scrap. Weitsman says the yard, which measures 10 acres, is paved and has new equipment, making the facility the first turnkey operation the company has acquired.

Initially, the facility will ship material to Upstate’s Owego shredder for further processing, though Weitsman says the company will start up its new shredders soon and may use the location to supply those plants. “We are starting on our New Castle shredder at the end of March,” he adds.

Upstate Shredding’s acquisition of Capitol Scrap Metal, a family-owned-and-operated company that has been in business since 1938, also is part of its plan to strengthen its network of feeder yards.

In December 2013 Upstate announced plans to invest $25 million to build and install an auto shredder at its facility at the Port of Albany.

 

METALS

Nucor starts up Louisiana DRI plant

Nucor Corp., Charlotte, N.C., says it started production at its direct reduced iron (DRI) facility in St. James Parish, La., Dec. 24, 2013.

The company says the quality of the facility’s DRI in terms of metallization and carbon content has improved quickly since startup. Within the first 24 hours of operation, output quality began matching what Nucor calls “best-in-class levels we routinely achieve at our DRI plant that has been operating in Trinidad since 2006.”

Once in full operation, Nucor’s Louisiana plant is anticipated to produce 2.5 million tons of DRI per year, making it the largest plant of its kind in the world and the first one to operate in the U.S. in several years. Much of the DRI produced at the plant will be consumed as a scrap substitute or scrap supplement at Nucor’s 23 electric arc furnace steel mills in the United States.

“We are very pleased to announce this important step in executing our raw materials strategy,” says John Ferriola, Nucor president and CEO. “I want to personally thank our team in St. James Parish for their commitment and perseverance working right through the holiday season in achieving this important success.”

 

PROFESSIONAL ASSOCIATIONS

ISRI creates Law Enforcement Advisory Council

The Institute of Scrap Recycling Industries Inc. (ISRI), Washington, D.C., has announced the creation of a Law Enforcement Advisory Council, what it calls a select group of experienced law enforcement officers, prosecutors and security personnel from around the country who have an understanding of the metals theft issue.

ISRI says the new council will provide the trade association with advice for developing a comprehensive program to address metals theft, including a multilayered training program designed to assist law enforcement.

The Law Enforcement Advisory Council held its first organizational meeting in late January 2014 in Washington.

“The recycling industry has long been on the frontlines as part of the solution to metals theft, working closely with local law enforcement and prosecutors to deter crime and creating a nationwide scrap theft reporting system to help in the investigation and capture of thieves,” says Robin Wiener, ISRI president.

“The establishment of the Law Enforcement Advisory Council is part of an even more advanced, comprehensive approach by the industry to address the problem of metals theft through training and greater outreach efforts,” she adds. “We look forward to working closely with this esteemed group of law enforcement professionals and relying on their expertise to design an outreach and training program to effectively assist local law enforcement in combating metals theft.”

Members of the ISRI Law Enforcement Advisory Council include:

  • Rick Arrington of the Virginia Department of Criminal Justice Services, Division of Law Enforcement, Crime Prevention, Richmond, Va.;
  • RenEarl Bowie, Texas Department of Public Safety assistant director, Austin, Texas;
  • Willis Allan Brown, Union Pacific, Colorado Division director of police, Denver;
  • Fred Burmester, deputy district attorney of Salt Lake County, Salt Lake City;
  • Col. Hugh T. Clements Jr., police chief, Providence, R.I.;
  • Terrence Cunningham, chief of the Wellesley Police Department, Wellesley, Mass.
  • Bethanna Feist, assistant attorney general of South Dakota, Pierre, S.D.;
  • David Hempen, manager of business continuity and security investigations, Mid- American Energy Co., Des Moines, Iowa;
  • Sheriff Aaron D. Kennard (retired), executive director of the National Sheriffs’ Association, Alexandria, Va.; and
  • Jerry Uhler, Southern California Edison/Edison International, corporate security, Rancho Cucamonga, Calif.

     

REGULATIONS

CalRecycle announces more CRV restrictions

The California Department of Resources Recycling and Recovery (CalRecycle) has introduced new restrictions to its beverage container recycling program, known as the California Redemption Value (CRV) system. Under the program, people returning beverage containers purchased in the state receive 5 cents for those holding less than 24 ounces and 10 cents for those holding 24 ounces or more.

Most beverages other than milk, wine and distilled spirits are included in the program, but out-of-state containers are not eligible for CRV, since the recycling fee is added to the price of beverages sold only within California.

Under CalRecycle’s most recent change, anyone transporting a load of empty plastic or aluminum beverage containers weighing 25 pounds or more (or 250 pounds or more of glass) into California is required to pass through a California Department of Food and Agriculture (CDFA) quarantine inspection station to obtain a proof-of-inspection document. A form documenting the source and the destination of the material must be completed.

The new rules took effect in mid-January 2014.

Other recent changes undertaken by CalRecycle intended to prevent fraud include training requirements for operators of recycling centers and processing facilities and reducing the number of containers an individual can bring to recycling centers in a single day from 500 pounds of aluminum or plastic to 100 pounds and from 2,500 pounds of glass to 1,000 pounds. Those changes took effect Jan. 1, 2014.

Importers who fail to accurately complete the required documentation and submit it to a CDFA agent, or who refuse to allow CDFA personnel to inspect the load of empty beverage containers, can be fined up to $1,000 per violation or be prohibited from entering California.

Recycling centers that accept out-of-state material are subject to civil penalties and could have their certifications suspended or revoked.


EVENTS

Munich to host IFAT 2014

IFAT, which its organizer, Meese München, describes as the “world’s largest environmental technology trade show,” will be May 5-9, 2014, in Munich.

At IFAT Entsorga 2012, more than 2,900 exhibitors from 54 countries presented their products, innovations and services on more than 2.3 million square feet of exhibition space in Munich. The event promises to be even bigger in 2014, organizers say, covering nearly 2.5 million square feet of exhibition space, approximately 161,500 square feet more than in 2012. Despite this expansion, exhibitors in some segments are still on a waiting list, Munich-based Meese München says.

IFAT organizers say they expect nearly 3,000 exhibiting companies from 50 countries at this year’s event.

A total of 56 joint stands from 13 countries also will be taking part.

Silvia Fritscher, IFAT exhibition director, says, “In this context, the proportion of international exhibitors as compared to the previous events will expand even further. The response from the exhibitors, in particular from international ones, is tremendous.”

Thirty-nine percent of the exhibitors at IFAT 2012 were from outside Germany.

In 2014 the GreenTec Awards, described as Europe’s largest environmental and business prize, will be presented for the first time at IFAT. Launched in 2008, the GreenTec Awards are designed to promote ecological and economic involvement and the use of environmental technologies.

To register for IFAT, visit www.ifat.de/en/Visitors/Tickets. Additional information is available at www.ifat.de/en.

 

METALS

Severstal North America celebrates 10 years in Michigan

Severstal North America, Dearborn, Mich., is celebrating its 10th year of producing steel in Michigan.

The company, a subsidiary of Russia-based Severstal, officially began operations in North America in 2004 when it purchased the bankrupt Rouge Steel for $290 million. Since purchasing the Dearborn steel mill, the company says it has invested more than $1.7 billion in the facility.

“The city of Dearborn is glad that Severstal has become such an important part of the community,” says Dearborn Mayor Jack O’Reilly. “Since 2004, Severstal has invested tremendously in our region and in our city, keeping alive the great manufacturing legacy of the state of Michigan. We’re looking forward to many more years of a successful partnership.”

In addition to its corporate headquarters and steel mill in Dearborn, Severstal North America also operates an electric arc furnace steel mill in Columbus, Miss.

“We are humbled by all the support we have received and are proud to call Michigan our home,” says Saikat Dey, CEO of Severstal North America. “Severstal has truly become the premier benchmark of a manufacturing renaissance, and we will continue to look for ways to invest in the region, both through job creation and operational excellence.”

Dey continues, “Over 9,000 direct and indirect jobs are dependent on the success of our company, as we infuse over $1 billion dollars annually in the Michigan economy through our purchases, whether buying iron ore from the mines of the Upper Peninsula or consuming natural gas and electricity in southeast Michigan.”

He adds, “Our steel products are used in cars produced here. And, that’s what we can proudly call ‘Made in Michigan.’”

 

MUNICIPAL / REGULATIONS

Minnesota agency studies bottle bill options

The Minnesota state legislature has directed the Minnesota Pollution Control Agency (MPCA) to prepare a report that details its recommendations for a statewide recycling refund program for beverage containers.

The MPCA says the goal of the program is to achieve an 80 percent recycling rate.

Supporters of the deposit program, or bottle bill, say the study finds that the recycling refund system described by the MPCA would result in recycling of more than 100,000 additional tons of beverage containers in Minnesota.

In addition to the increase in the quantity of beverage containers recycled, bottle bill advocates say the quality of the collected materials would be better than that of the state’s existing recycling systems.

MPCA says annual costs increases associated with achieving these higher recycling levels are estimated to be:

  • $29 million to operate the recycling redemption system, incurred by beverage producers;
  • less than $1 million incurred by the state of Minnesota, not including state tax loss impacts that may occur from reduced in-state grocery sales; and
  • undetermined costs incurred by consumers in transporting beverage containers to redemption sites.
     

Supporters of the proposed container deposit policy also project annual cost reductions that include:

  • a savings of $5.6 million realized by local authorities and individual single-family home waste and recycling service subscribers; and
  • undetermined savings to state and local authorities in light of reduced litter cleanup.

A draft of the cost-benefit analysis recommendations report can be found at www.pca.state.mn.us/apfc83w.


METALS

North Carolina scrap firms form partnership

Raleigh Metal Recycling, Raleigh, N.C., which operates Raleigh Metal Recycling and Goldsboro Metal Recycling, has entered into a long-term operating agreement with J&G Scrap Metal Recycling, Wilson, N.C.

“With all the changes in North Carolina metal theft laws, we wanted to partner with a company that could support us with technology that would ensure we met all aspects of the law,” says Jeff Charles, owner of J&G Scrap Metal Recycling. “When we heard that the Raleigh Metal Recycling operation and their technology were written up on CNBC’s website and the Wall Street Journal, it helped us make our decision.”

The company will be called Wilson Metal Recycling JG and its operations will expand to include recycling electronics and batteries. It will continue to purchase material from the public, industrial and demolition companies.


PAPER

Marcal to upgrade deinking operation

Soundview Paper Holdings, an affiliate of Atlas Holdings LLC, Greenwich, Conn., has announced that it will invest several million dollars to upgrade deinking operations at its Marcal Paper Mills’ facility in Elmwood Park, N.J. According to published reports, the company will invest from $10 million to $12 million in the system.

Soundview acquired Marcal Paper Mills in 2012 and closed on a $25.45 million Grown NJ grant in late 2013 to help upgrade the Elmwood Park mill.

In light of this decision, Soundview has postponed its earlier plan to build a cogeneration plant at the site.

According to Woodland Park, N.J.’s The Record, by upgrading the deinking system, Soundview will be able to accept curbside-generated mixed paper. The mill currently produces 150,000 tons of recycled fiber per year. With the new equipment, it will increase production to 175,000 tons per year at a lower cost, Soundview says.


METALS

Canadian aluminum scrap consumers merge

Rochester Aluminum Smelting Canada Ltd. has acquired Greenway Industries Corp., Concord, Ontario.

Rochester Aluminum, also based in Concord, produces aluminum casting alloys, primary and secondary aluminum shot, granules, cones, pyramids and 5-pound notchbar for steel mills, chemical companies, foundries and other customers.

Greenway, an aluminum scrap processing facility, is equipped with two tilting rotary furnaces. Rochester says it plans to add a third furnace, which will to go online in the second quarter of 2014.

By adding a third furnace, Rochester says Greenway will be able to provide tolling services and meet its own production needs for molten metals and sows. One rotary furnace will be dedicated to supplying Rochester’s deox operation with molten metal and sows, adding about 3 million pounds per month of finished product to Rochester’s casting capabilities, the company says.

 

PLASTICS

Axion adds extrusion line

Axion Recycled Plastics Inc. has commissioned an additional extrusion line to increase its manufacturing capacity. Headquartered in New Providence, N.J., the company is a wholly owned subsidiary of Axion International Holdings.

A Davis Standard 6-inch extruder began production Dec. 13, 2013. The installation adds 1.8 million pounds of reprocessed (pelletized recycled plastic resin) to the company’s monthly capacity, Axion says. The machine is capable of processing postconsumer and postindustrial plastic.

“This is a great accomplishment for us to commission this extrusion line, which will expand our capacity and capability to meet the increase in customer demands,” says Steve Silverman, Axion president and CEO. “This was the first major project for our new company and it was great to see this completed on time and within budget. With the addition of this extruder, we now operate five extrusion lines across two facilities, allowing us to provide value-added products to our customers.”

 

PLASTICS

New Hampshire plastic scrap plant nears completion

Poly Recovery, Portsmouth, N.H., says it is entering the next phase of its plastic scrap recycling facility expansion that was announced in June 2013.

Poly Recovery calls the installation of a wash plant phase three of its 24,000-square-foot expansion, which also includes plastic scrap separation and drying equipment.

The wash plant being installed will give Poly Recovery the “ability to process dirty and mixed plastics into a pristine recycled resin for local end-user manufacturing,” the company says in a January 2014 news release.

“Not only will the wash lines open doors to more types of plastic waste streams we can divert from landfills, it will create more sustainable jobs in New England, reduce the carbon footprint of truck traffic leaving the region as well as provide local American manufacturers with the cleanest and most cost-effective recycled resin possible,” says Poly Recovery General Manager Mike Mooney.

Poly Recovery founder and CEO John Pelech says, “Because I see so much plastic end up in landfills or sold across the globe every day, I want to ensure our community has the resources and ingenuity to process our waste here at home.

“Every piece of plastic has value, and through our process at Poly Recovery we plan on providing our local manufacturers with low-cost and reclaimed plastic alternatives through our sustainable recycling model,” he adds.

Pelech says Poly Recovery’s new equipment investment will amount to slightly more than $1.5 million. The plant is expected to process 15,000 tons or more of plastic scrap annually.

“We’ve studied the market very closely and determined that New England is desperately in need of this type of service,” Pelech says.

He estimates that 10 to 15 truckloads of plastics will come through the company’s facility per week.

 

PLASTICS / WASTE TO ENERGY

Vadxx Energy closes on financing

Vadxx Energy, headquartered in Cleveland, has announced that it has closed on the financing for its first commercial-scale plastic-waste-to-energy facility. The company’s first unit will be built in Akron, Ohio, and is scheduled to come online in early 2015. It will consume roughly 60 tons per day of waste plastics.

The global private equity firm Liberation Capital, Charlotte, N.C., has entered into an agreement with Vadxx to fund the first unit as well as additional commercial units. Rockwell Automation will be the procurement and construction contractor for the facility.

“Vadxx is focused on implementing our first commercial unit in Akron successfully as an important first step toward global expansion,” says Jim Garrett, Vadxx CEO.

The company has been operating a small pilot facility for several years as it worked through the equipment and design process.


MUNICIPAL

South Carolina county picks Sonoco to operate MRF

The finance committee of Charleston County, S.C., has approved a 10-year contract with Sonoco, Hartsville, S.C., under which the papermaking and recycling company will operate the county’s recycling facility. The contract was approved by the finance committee at a special meeting in mid-January 2014 but as of press time has not been approved by the county administrator.

The county’s material recovery facility (MRF) operating contract with Republic Services ended Jan. 31, 2014.

Also up for discussion in Charleston County is the introduction of a new recycling program, the first phase of which involves single-stream processing of recyclables and the second phase involves converting nonrecyclable materials into a renewable energy product.

The Charleston Post and Courier reports that the county administrator recommends the council approve the contract with Sonoco.

The city plans to build a new MRF, which should be running 18 months into the contract.


METALS

Allied Alloys of Houston acquires California recycler

Allied Alloys, a privately held metal recycling company based in Houston, has acquired Nico Alloys of California. Nico Alloys specializes in processing nickel-based scrap metal, with operations in Los Angeles and a corporate office in Northern California. Allied says the acquisition will provide it with a West Coast presence, helping the company to better serve customers in the Far East and Asia.

Jeremy Blachman, COO and CFO of Allied Alloys, says the acquisition “is a strategic addition to the nickel-based scrap metal processing and blending that we already perform, with the addition of new capabilities that will extend our industry leadership.”

Larry Levine, founder and majority owner of Nico Alloys, says, “We are so happy to be part of the Allied Alloys family. The knowledge, expertise and experience that Allied Alloys has will benefit our suppliers and customers.”

Allied Alloys is a full-service metal recycling and processing company that has an international brokerage alliance with Titan Metals, based in Houston. Key services and facilities Allied offers include an in-house laboratory, detailed traceability of materials, customized programs and extensive warehouse space for processing and storage, the company reports. Allied serves buyers and sellers around the world.

 

PAPER

Cardboard recycling group launches certification program

The 100% Recycled Paperboard Alliance (RPA), Washington, D.C., has launched a certification program called RPA-100% designed to prove recycled content claims in paperboard are accurate.

The group says third-party organizations audited RPA member companies to verify their recycled content claims.

RPA board Executive Director Paul Schutes says, “The existing symbol, which has been in use since 1995, has been an important tool for brand owners to communicate the recycled content of 100-percent-recycled paperboard to consumers. With this new program and the revised symbol, our licensees, some of North America’s largest and most prominent brand owners, will have a level of substantiation for the claim they are making on packaging that has never before been available.”

RPA-100% members include Cascades Boxboard Group, Fusion Paperboard, Graphic Packaging International, RockTenn and White Pigeon Paper Co.

 

METALS / AUTO RECYCLING

SMS acquires auto recycling operations in Indiana and Michigan

Scrap Metal Services (SMS), a Chicago-based metals recycling firm, has acquired Paul’s Auto Yard Inc., with locations in Indiana, and Shafer’s Auto Yard Inc., Coloma, Mich.

After the acquisition, SMS created a new division called SMS Paul’s Auto Yard, which has eight self-serve auto parts yards that include retail sales and ferrous and nonferrous scrap purchasing.

SMS says the purchase will allow it to expand its geographic reach in the Midwest into northern Indiana and southern Michigan. The auto parts yards are in South Bend, Gary, Westville, Lake Station, Elkhart and Demotte, Ind., and in Coloma.

The company now operates 20 scrap processing, steel mill support services, ship breaking and oil rig dismantling, intermodal/truck/railcar dismantling and auto parts sales facilities in the U.S. It also has two scrap yards in Mexico.

SMS provides scrap management, consulting and purchasing services to industrial scrap generators and to demolition contractors on a local and national basis.

 

PLASTICS / WASTE TO ENERGY

ACC forms Plastics-to-Oil Alliance

The Plastics Division of Washington, D.C.-based American Chemistry Council (ACC) has formed a new group that seeks to enhance public policy supporting technologies that convert nonrecycled plastics into petroleum-based products.

The Plastics-to-Oil Technologies Alliance will work to increase awareness of the benefits of plastics-to-oil technologies, enhance the industry’s voice through expanded membership and demonstrate broad support for plastics-to-oil technologies through an expanding network of allies, the ACC says.

Founding members of the group include Agilyx Corp., Beaverton, Ore.; Cynar Plc, London; and RES Polyflow, Akron, Ohio. The ACC says membership is open to all entities that develop and implement technologies to convert nonrecycled plastics into petroleum and petroleum-based products.

Jon Angin, vice president of business development at Agilyx and chairman of the new alliance, says, “Plastics-to-oil technologies are a promising solution for repurposing used plastics that would otherwise end up in a landfill.”

Steve Russell, vice president of plastics for the ACC, adds, “Used plastics are a valuable resource that should be recycled whenever possible, but when recycling isn’t an economically or environmentally feasible option, there is enormous potential to transform used plastics into energy to help power America’s homes, businesses and communities.”

The ACC says the alliance is a complement to existing Plastics Division programs desgined to increase plastics recovery.


REGULATIONS

North Carolina introduces scrap vehicle reporting system

The state of North Carolina, through its Division of Motor Vehicles (DMV), has begun requiring auto recyclers and scrap metal companies to verify vehicle information prior to scrapping vehicles or selling used auto parts. The law went into effect Dec. 1, 2013.

Under the North Carolina Scrap Vehicle Reporting System, metals recyclers and salvage yards can verify whether a vehicle brought to them without a title and more than 10 model years old has been reported stolen prior to purchase.

The state’s DMV provided system access to salvage yards and metals recyclers to allow them to cross-reference information with DMV files. All North Carolina salvage yards and recyclers had to register with North Carolina Identity Management (NCID), the state’s identity management and access service, and North Carolina Department of Transportation/DMV to access the new system and begin verifying the status of vehicles brought to them on or after Dec. 1, 2013.

If a vehicle is reported stolen, the system is designed to notify the salvage yard or recycling business to verify the vehicle identification number and stop the purchase of the vehicle. The system immediately notifies the division’s License and Theft Bureau about the stolen vehicle and the business also must notify its local law enforcement agency. Information obtained by these businesses is available only to law enforcement agencies.

If the vehicle is not reported stolen, the system allows the sale to continue, requiring a copy or scanned image of the seller’s driver’s license and identifying information about the vehicle. A printable verification is provided at the end of the transaction, and the seller must print and maintain the record for two years. The system checks the vehicle’s status for five days after the initial request has been registered.

 

ELECTRONICS

Gartner Inc. recognizes Sims Recycling Solutions

The electronics recycling firm Sims Recycling Solutions (SRS), based in Chicago, has been recognized as a leader in the ITAD (IT asset disposition) industry by Gartner Inc., an IT research and advisory company, in its December 2013 Magic Quadrant for Worldwide IT Asset Disposition. SRS says that because market demand for ITAD services is global, the Magic Quadrant looked at the market worldwide. Gartner assessed 11 international vendors using high-inclusion criteria relating to services delivered, geographies covered and quality of execution.

“With the expanded geographical scope of this assessment, we consider our position in the ‘Leaders’ quadrant by Gartner as confirmation of our ability to provide quality, consistent services across the globe,” says Steve Skurnac, president of SRS Americas. “We will continue to implement best practices from around the world to solve our customers’ needs and help them recover the maximum value for their IT and electronic equipment.”

SRS provides recycling services at 42 locations it owns throughout the world. In North America, SRS operates 14 sites in Arizona, British Columbia, California, Florida, Illinois, Maryland, New Jersey, Ontario, Quebec, Tennessee and Texas.

 

METALS

ArcelorMittal, Nippon Steel acquire Alabama ThyssenKrupp plant

ArcelorMittal, based in Luxembourg, and Nippon Steel & Sumitomo Metal Corp. (NSSMC), Toyko, have entered into a 50/50 joint venture partnership to acquire ThyssenKrupp Steel USA (TK Steel USA) from ThyssenKrupp for $1.55 billion. TK Steel USA is a steel processing plant in Calvert, Ala., with a total annual capacity of 5.3 million metric tons. The facility includes hot rolling, cold rolling, coating and finishing lines.

The transaction is subject to the approval of regulatory authorities in the U.S. and in a number of other countries.

The transaction includes a six-year agreement for ArcelorMittal and NSSMC to purchase 2 million metric tons of slab steel per year from ThyssenKrupp CSA (TK CSA), an integrated steel mill in Rio de Janeiro, Brazil. TK CSA has an option to extend the agreement for an additional three years at more favorable terms to the joint venture.

The Brazilian steel mill has an annual production capacity of 5 million tons of slabs. The deal will secure at least 40 percent capacity use at the plant to ArcelorMittal and NSSMC. TK adds that the deal, along with stronger penetration of the slab markets in South and North America, will increase the plant’s capacity use.

The remaining slab balance needed at the Calvert plant will be sourced from ArcelorMittal plants in the United States, Brazil and Mexico. ArcelorMittal also will be responsible for marketing the product on behalf of the joint venture.

The goal of the joint venture, the partners say, is to serve the automotive sheet market in North America, especially in the southern U.S. Nippon Steel says the joint venture will provide it with the capability to meet the growing needs of Japanese car manufacturers for ultra-high-tensile-strength products with good formability and hot-rolled steel products including high-tensile-strength grades.

Lakshmi Mittal, chairman and CEO of ArcelorMittal, says, “The Calvert plant is the most modern finishing facility in the world. It ideally complements our existing operations in the United States and the Americas and will improve our ability to supply customers in the automotive and other markets in the southern United States, where we do not have comparable facilities today. We have worked successfully with NSSMC in other joint ventures in the U.S. for years and look forward to extending the collaboration.”

 

METALS

ISA signs service agreement with Algar

Industrial Services of America Inc. (ISA), a Louisville, Ky.-based scrap metal recycling company, has entered into a management services agreement with the auto parts and recycling company Algar Inc., also based in Louisville. The agreement went into effect Dec. 1, 2013, and extends through Dec. 31, 2016.

Under the terms of the arrangement, executives and staff of Algar will assist ISA with its day-to-day operations in an attempt to strengthen ISA’s financial operations. Additionally, ISA’s board has appointed Sean Garber, Algar chairman and CEO, president of ISA.

Garber previously served as president of ISA from 1997 to 2000 and has direct experience with the company’s facilities and operations.

“We are very pleased to have identified a group with extensive industry and operating experience in scrap recycling,” Orson Oliver, ISA chairman and interim CEO, says. “We are excited about Sean’s plan to grow the company through the acquisition of auto parts companies and other businesses. We believe he and his team can immediately and beneficially impact ISA’s operations and welcome him to the company.”

Garber adds, “My team and I are excited to bring to bear our industry expertise, operating experience and ability to develop a strong corporate culture to ISA. I am thankful to Mr. Kletter for giving me the opportunity to come to Louisville in 1996. I look forward to working with the ISA team to build the company into a larger, stronger business, which ultimately should bring value to ISA shareholders.”

As part of the management services agreement with Algar, Garber and Oliver received an irrevocable proxy from Harry Kletter, K & R LLC and The Harry Kletter Family Ltd. Partnership (collectively, “Kletter”), which provides Oliver and Garber joint voting authority over the shares of the company’s common stock owned by Kletter, the company’s largest shareholder.

Harry Kletter died Jan. 5, 2014, shortly after the start of the service agreement with Algar.

 

ELECTRONICS

Miller Scrap Iron & Metal receives certifications

Miller Scrap Iron & Metal, a scrap metals and electronics recycling company located in Winona, Minn., has announced that it has been certified to the R2:2013 (Responsible Recycling Practices) and the RIOS (Recycling Industry Operating Standard) 2006 standards.

RIOS is the quality, environmental and health and safety management standard for recyclers developed by the Institute of Scrap Recycling Industries Inc. (ISRI), Washington, D.C., while the R2 standard, administered by R2 Solutions, Boulder, Colo., sets forth requirements relating to the environmental, health, safety and security aspects of electronics recycling.

“Miller Scrap’s positive reputation in the recycling industry was built on being honest, working hard and developing long-term relationships,” says Jerry Miller, president and CEO of Miller Scrap Iron & Metal. “We are extremely proud of our company’s history, our employees and their strong work ethic.”

Miller adds, “The R2 and RIOS certification process has already helped our company continue to become more proficient and effective.”

 

METALS

Thalheimer Bros. acquires Ansam Metals

Thalheimer Bros., a Philadelphia-based nonferrous scrap metal recycling company, has acquired Baltimore-based Ansam Metals, a broker and processor of cupro-nickels, monels, brass mill specialty items and other nonferrous metals.

Following the acquisition, Ansam will operate as a division within Thalheimer and will maintain operations from Baltimore.

“Ansam is a leading recycler of cupro-nickels and monels with an unparalleled reputation in the industry built over the last 40 years,” says Rich Reiner, CEO of Thalheimer.

Reiner adds, “We look forward to working with Ben Zager and his team to continue to drive growth in those metals throughout the world.”

Thalheimer handles brass, copper, nickel alloy and stainless steel.

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