Subsidiaries of Montreal-based American Iron & Metal (AIM) have purchased auto shredding plants operated by the Liberty Iron & Metal subsidiary of Hong Kong-based Chiho Environmental Group.
A late June Hong Kong Exchange disclosure filing by Chiho indicates its shredder yards in Erie, Pennsylvania, and in Phoenix have been purchased by AIM Erie and AIM Phoenix, respectively.
“The disposal assets include certain equipment, machinery, vehicles, trailers, containers, computer software and inventory of the shredder facilities that the group owns and operates in Erie, Buffalo [New York] and Phoenix,” the Chiho filing states in part.
The filing indicates AIM will pay $17 million for the equipment and metals assets and $12.7 million for the four parcels of land it will acquire from Chiho.
Chiho expanded beyond its base in China and Hong Kong in the previous 12 years or so by purchasing the assets of the Scholz Group in Germany and Liberty Iron & Metal in the United States.
While the company has retained many of the Scholz assets in Europe, this most recent transaction seems to indicate a nearly complete exit from the United States market by Chiho, which is affiliated with the government of Chongqing, China.
In late 2020, Chiho filed another disclosure spelling out the sale of an auto shredder yard in Girard, Ohio to New Jersey-based Metalico Inc.
The Liberty Iron & Metal website lists the Phoenix and Erie yards as its only operating United States locations. (The Buffalo site, which the Chiho filing indicates is at 207 and 267 Marilla Street, is not listed.) The website also lists a location in Chihuahua, Mexico, as still operating.
Metals information service company Argus says AIM CEO Herbert Black told Argus the move represents an expansion of the Canadian firm’s presence in the U.S. market.
The Arizona, New York and Pennsylvania assets will be added to AIM’s current U.S. portfolio, which includes one location in Cleveland and three facilities in Maine. AIM has multiple locations in Canada.
The full disclosure filed by Chiho Environmental can be viewed on this web page.