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Blase brothers to open shredder in Georgia

Keywords: Tags  Blase brothers, Blaze Recycling & Metals, Gary Blase, Craig Blase, Ken Blase, auto shredding, metals recycling, Daniel Fitzgerald

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, Ga.

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. "It’s on the eastern side of Georgia, where there’s never really been a large-scale scrap processor," he said.

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 month.

"It’s better to go light than heavy. We can make money at 5,000 (tons per month)," he said.

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 said.

"We’re 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.

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