In its most recent SEC filing, Metal Management noted that it will be increasing its capital expenditures.
According to the filing, Metal Management plans to have $14 million in fiscal 2004 for capital expenditures. The expenditure includes the purchase of land on which it operates a scrap metals recycling facility in Houston, Texas and costs to complete the installation of a "Mega" Shredder, that the currently owns at its Phoenix, Ariz., facility. That facility is expected to be operational this month.
In addition, due to favorable financing terms made available by equipment manufacturing vendors, the company entered into operating leases for new equipment. Since April 2002, the company entered into 35 operating leases for equipment which would have cost approximately $8.8 million to purchase.