King George, Virginia-based Free Flow Inc. says its Motors & Metals Inc. (M&M) subsidiary has entered into a $5.5 million conditional lease financing agreement to build an auto shredding and scrap metal processing plant with a processing capacity of 5,000 metric tons per month. The plant will be located on approximately 8 acres of a 19-plus acre parcel owned by Accurate Auto Parts Inc., another Free Flow subsidiary.
Free Flow and its subsidiaries, all based in King George, which is about 70 miles south of Washington, provide services and products tied to vehicle dismantling and vehicle parts and supplies sales, scrap metal processing and auto leasing.
Free Flow and M&M announced in 2019 having received a letter of intent from an overseas buyer willing to purchase 36,000 metric tons per year of processed scrap metal.
Since that letter was signed, several additional buyers from other countries have approached the company and expressed their willingness to sign long-term contracts with M&M, according to Free Flow. The firm says it is anticipating annual sales from the shredder yard could exceed $10.7 million.
M&M signed an auto parts and distribution agreement in May 2017 with SAM International-F.Z.E., a free-trade zone company based in the United Arab Emirates (UAE), and with M&O Commodities (Pvt.) Ltd., a company incorporated in Pakistan.
The company says it has received its license from the Commonwealth of Virginia to operate as a scrap metal processor. The shredder yard is being designed to host an 80/85 hammermill-style shredder.
“Receiving a lease financing commitment for the expansion of our subsidiary operations, especially a project that is anticipated to produce approximately $10 million per year, is an important milestone,” says Sabir Saleem, CEO of Free Flow. “This type of operations financing is especially beneficial to [our] stockholders since the expansion capital is being provided directly to a revenue-generating project without any immediate common stock dilution. We will endeavor to continue building long-term shareholder value under the best possible terms.”