NEW YORK The former
owners of Blaze Recycling & Metals Inc. are setting up a
new recycling and auto shredding business near Atlanta after a
noncompete clause from the 2007 sale of Blaze to a private
equity group expired in July.
Gary, Craig and Ken Blase this
week purchased a wire chopping line and broke ground on a
two-story scale house at their new facility in Lithonia,
The brothers purchased the
30-acre site in August, according to Wendt Corp., which sold
them the wire chopper. The site already featured a
60,000-square-foot building, which will house the chopping
line. The brothers also plan to install a nonferrous baler and
an auto shredder at the site.
Gary Blase told AMM
that the facility has been zoned to offer the full breadth of
scrap processing capabilities, including an auto parts
facility. "Its on the eastern side of Georgia, where
theres never really been a large-scale scrap processor,"
The new venture will probably
begin purchasing scrap metal in March or April, with the
company still in discussions with original equipment
manufacturers over shredding equipment, Blase said. It will
initially target a shredding capacity of 10,000 tons per
"Its better to go light
than heavy. We can make money at 5,000 (tons per month)," he
The expiration of the noncompete
clause included in the sale of Blaze Recycling was the impetus
for the brothers return to the scrap business, Blase
"Were all young. We were
all planning on getting back into the business once the
noncompete ended. This is what we know," he said.
The timing of their return to
the scrap business is "perfect," he said, adding that "you can
always get a better deal when the market is done" and
suggesting that the new company might review acquisition
opportunities in the region.
The brothers have not yet
settled on a name for the new business, Blase said.