Portland, Oregon-based Schnitzer Steel Industries Inc. says it has purchased the operating assets of Encore Recycling LLC, comprising two facilities in the Atlanta metropolitan area. One of the two facilities includes a metal shredding operation and Encore also has a recycled auto parts center.
Founded in 2013, Jefferson, Georgia-based Encore purchases and processes end-of-life vehicles, appliances, and additional ferrous and nonferrous materials from local recycling companies and industrial, commercial, and individual customers, says Schnitzer.
“Encore sells its recycled products to steel mills and foundries throughout the Southeast, the fastest growing steel and industrial manufacturing region in the country,” adds the multi-location acquiring firm.
The acquisition of Encore’s assets follows Schnitzer’s 2021 purchase of eight recycling facilities from Columbus Recycling and expands the company’s Southeastern regional footprint to 24 recycling facilities in Alabama, Georgia, Kentucky, Mississippi and Tennessee, says the firm.
“The acquisition of Encore will expand our platform and offerings in the robust Southeast market by establishing our first shredding operation in the region with immediate scale and meaningful synergies,” says Tamara Lundgren, board chair and CEO of Schnitzer.
“This purchase builds upon our recent strategic investments including our recently opened state-of-the-art heavy media plant in Macon, Georgia, and the purchase of eight recycling facilities from Columbus Recycling last October,” she continues. “The addition of the Encore assets is consistent with our growth strategy to expand metals recycling operations to meet anticipated increases in steel and nonferrous metals demand driven in part by the global transition to low-carbon technologies. While a variety of solutions will be required as industries, communities, and governments actively pursue carbon reduction, the increased use of recycled metals is one path that is immediately achievable.”
In 2021, the Encore facilities processed approximately 90,000 tons of ferrous scrap and 7,000 tons of nonferrous scrap, partially arising from its handling of 20,000 end-of life vehicles.
Schnitzer says it plans to make capital and other investments at the acquired facilities, including for environmental projects and programs such as a shredder enclosure and emission control system, stormwater infrastructure upgrades, and implementation of a U.S. Environmental Protection Agency approved refrigerant recovery management program.