Metalico Acquires Specialty Scrap Recycler

Metalico, Inc. has announced the acquisition of Tranzact Corp., a recycler of molybdenum, tantalum and tungsten scrap. The company is located in Quarryville, PA, where it performs processing, warehousing and trading of the material.

Tranzact reported sales of about $25 million during each of the two previous years.

Tranzact’s operations are characterized by low unit volumes purchased and sold, but with high dollar value transactions. Its principal scrap metal,, molybdenum, has traded in a range of $25 to $30 per pound in recent months.

Molybdenum, the company’s primary commodity, is used in the vacuum and air-melting of super alloys and corrosion and wear-resistant alloys and steels, where it contributes to strength, "hot hardness" and corrosion resistance. Tungsten has similar applications as well as use in tungsten carbide for wear applications. Tungsten is also used extensively in electronic products and in high-speed tool steels.

Tranzact focuses on effectively sourcing, sorting, certifying and assuring that scrap metal meets its quality control requirements and those of its consumers before metals are shipped. It principally generates scrap from various operations from both domestic and offshore sources.

William E. Zimmerman, the founder of Tranzact, will continue to be available as a consultant.