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Recycler adds shredder in Oklahoma City

Nov 25, 2013 | 04:31 PM |

Tags  scrap, USA Metal Recycling, shredder, Oklahoma City shredder, ferrous scrap, nonferrous scrap, Sean Davidson

NEW YORK — USA Metal Recycling LLC will begin installing a shredder in Oklahoma City, the city’s fourth, with a summer 2014 launch target after local officials approved its plan this month.

The new shredder, located on a 23-acre property, will have a monthly processing capacity of 14,000 gross tons of scrap with rail access. It will be the company’s second shredder, with its first located in Lowell, Ark.

A USA Metal Recycling spokesman estimated the project cost at $15 million and said the Lowell-based company had ample reason to invest in a shredder despite persistent claims of shredder overcapacity from the overall industry.

"In order for our company to provide service to both the industry and the public, our model requires a shredder. Without a shredder we would be too dependent on nonowned assets," he said.

At the moment, Oklahoma City-based Standard Iron & Metal Co., Houston-based Derichebourg Recycling USA Inc. and Kansas City, Mo.-based Midwest Scrap Management Inc. operate shredders in Oklahoma City.

With nine facilities across Arkansas, Missouri and Oklahoma, USA Metal Recycling supplies ferrous scrap to steel mills and foundries in Arkansas and the Midwest, the spokesman said.

The company didn’t offer any insight into the total volumes of ferrous and nonferrous scrap its processes and trades, but said it does participate in export markets for ferrous scrap when they are favorable.

"Occasionally, we export up to 25 to 50 percent (of the total ferrous scrap) in an export month," the spokesman said.

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