Industries Inc. has started up its new auto shredder in
Cumberland, Md., signaling a further inland reach for the
Smith, a subsidiary of Capitol
Heights, Md.-based Joseph Smith & Sons Inc., itself a
venture of Warrington, England-based European Metal Recycling
Ltd. (EMR), fired up the shredder sometime in the past week.
The company declined to comment on the investment.
Despite a nationwide shredding
overcapacity, two shredder operators said the new operation
might have found a niche in an area that isnt overrun
with shredders and can pull scrap from a large area. The
facility, located on a 15-acre parcel less than 150 miles from
Pittsburgh, Baltimore and Washington, can draw on all three
metropolitan areas to secure feedstock.
Joseph Smith & Sons
subsidiary Allegany Scrap Inc. was issued a permit in September
from the Maryland Department of the Environment to install a
240-ton-per-hour shredder, but one source suggested the company
didnt opt for this size.
The source, who said he
delivered a load to the scrapyard March 1, said the shredder
appeared to be smaller than the one owned by Conservit Inc. in
Hagerstown, Md. Conservits Metso 80/104 shredder is
capable of roughly 80 tons per hour, a Conservit source
Allegany Scrap owns a second
yard in Cumberland that has rail access. Smiths new
shredder plant doesnt have rail access, and it is unknown
whether it will install a rail spur.
Smith purchased the former
Bayliner Marine Corp. facility for $825,000 in February 2012,
according to Allegany County tax records. The facility was
built in 1987 and is equipped with overhead cranes and
warehouse loading doors.
Joseph Smith & Sons operates
17 yards, including two megashredders in Baltimore and Capitol
Heights, which gives it access to domestic and export markets.
The new location is a further inland move for the recycler,
which will now have better access to Ohio Valley and Pittsburgh
While some describe the new site
as a good one strategically, one shredder operator said that
with margins already under pressure, the area doesnt need
another shredding operation.
The company began acquiring
permits in February 2012 to raze part of the original
90,600-square-foot building at the fully fenced brownfield
site, perform site preparation and construct a new building for
the shredder, as well as perform grading, a spokesman at
Allegany Countys Land Development Services division
The property is located in a
Maryland Enterprise Zone, which makes it eligible for income
tax and real property tax credits. Smith hasnt applied
for any credit, according to the countys Department of
Economic and Community Development.