NEW YORK Scrap processor Cronimet Corp. will open a stainless steel recycling facility in Cheyenne, Wyo., next month, the company said.
The facility, scheduled to open Oct. 21, is "an effort to continuously meet the growing demand of U.S. stainless steel consumers," Cronimet said Sept. 26. "This operation is intended to facilitate the movement of materials from the western part of the U.S. to our consumers in the east."
The facility "has been in the works for about a year," Cronimet president and chief executive officer Frank Santoro told AMM. The impending ramp-up at Espoo, Finland-based Outokumpu Oyjs stainless mill in Calvert, Ala., motivated the Aliquippa, Pa.-based companys decision to facilitate better access to stainless scrap in western parts of the country (amm.com, Sept. 19), he added.
"With Outokumpu coming into the market and adding additional demand to the U.S. market, were looking at where we can get material thats outside of the normal area, in the east of the country, where we get scrap," Santoro said. "Cheyenne has rail access; its a good cross section, so we can bring scrap in from the northwestern part of the country.
"The stainless market is not booming," Santoro added, "but there is demand that wasnt here prior to six or eight months ago."
Gary Smith, a Cronimet trader based in Chicago, will manage the Cheyenne facility, and Don Stamp will come in as a senior trader, the company said. Stamp is a scrap industry veteran who most recently worked for Superior, Wis.-based machinery manufacturer Exodus Machines LLC.
Cronimet this past week agreed to purchase "a substantial portion" of Chicago-based recycler Keywell LLCs assets (amm.com, Sept. 23). Keywell subsequently filed for Chapter 11 bankruptcy protection (amm.com, Sept. 25).