Metalico Inc. has purchased a portion of the former Bethlehem Steel/Mittal complex in Western New York, including an abandoned galvanizing mill, from Great Lakes Industrial Development LLC. Metalico says the facility will be the site of the company’s new auto shredder.
The site purchased is 44 acres and includes a 177,500-square-foot building. Metalico plans to install an 80 X 104 auto shredder inside the building. In announcing the purchase, Metalico says that the new location is zoned for the company's contemplated use and approvals are in place for outdoor storage and processing of scrap metals.
The planned shredder will be powered with a 4,000 hp electric motor with an operating speed of 600 rpms, suitable for processing between 100-120 tons per hour of shreddable scrap. The installation will include a new downstream separation system to maximize the recovery of valuable non-ferrous products.
Metalico expects to produce 120,000 tons per year of high quality shredded steel scrap by combining feedstock generated from its own yards and material available for purchase in the region. The company looks to satisfy growing demand for shred from electric arc furnace mills, export markets and other consumers.
The company expects to make a capital investment of more than $10 million for the acquisition of the property, plant and support equipment and related improvements for the shredder project. The company plans to add two more scrap buying centers in the area to supply the shredder.
"The galvanizing mill site is a perfect location for our expansion of services in Upstate New York. We expect the shredder will also draw feed from our other facilities, consistent with our strategy of penetrating geographically contiguous markets and benefiting from intercompany and operating synergies that are available through consolidation," says Carlos Agüero, Metalico’s president and CEO.