Metalico Starts Up Auto Shredder

In its annual report to shareholders, the scrap metal recycling firm Metalico, headquartered in Cranford, N.J., reports that its newest auto shredder, located in Buffalo, N.Y., has commenced operations. While the 4,000-horsepower auto shredder has started, the company says full commissioning of the shredder should be complete by the first half of this year. However, Metalico says it has started commercial sales orders for the fragmented metal generated from the auto shredder.

 

The company says its goal is to ship between 12,000 and 15,000 tons per month of shredded product via rail from the site.

 

In recognizing the raw material demand needed by the mill, Metalico says it recently acquired a Buffalo-based auto dismantler Skyway Auto Parts Inc., to help supply the shredder with the raw material needed. Skyway, which operates on a 24-acre site, is naerly three miles away from the shredder.
 

Metalico also says it invested $27.5 million in capital expenditures while debt increased by only $2.8 million to $128.8 million. In addition to the auto shredder, Metalico points out that it made significant capital investments in its facilities and operations through purchases of heavy equipment and transportation equipment, including a fleet of 96 rail cars currently being upgraded and placed into service.