NEW YORK ICD Group Inc. is branching out into recycling, processing and trading metals for the superalloys sector with a new business in Winston-Salem, N.C.
The new division, ICD Alloys & Metals LLC, will be headed by former ABS Alloys & Metals USA LLC executives Ian Machent and Stephen Conlin following the takeover of ABS by ELG Utica Alloys International GmbH.
ICD Alloys & Metals will source, analyze, process and upgrade materials containing nickel, cobalt, columbium (niobium), tantalum, titanium and tungsten, as well as other superalloys materials. It also will supply pure metals in various quantities.
The new division will function as a "one-stop shop for nickel and cobalt alloy manufacturers," selling to customers in North America, Europe and China, ICD chief financial officer Ed Ellenbogen told AMM.
The company has purchased a 29,000-square-foot warehouse in Winston-Salem that it expects to have in full production by the end of April, he said, noting that the company has already purchased equipment for the facility.
ICD Alloys & Metals has also started to trade and to stock some raw materials at the facility, which has "room to expand," Ellenbogen said.
The company is targeting sales of $25 million in its first year before building up to $100 million in its fifth year of operation, Machent told AMM.
In addition to processing scrap, the company will also produce specification melted ingot via outsourced melting, he said.
The ingots will be manufactured to customers specifications from recycled scrap metals and pure metals using ICD Alloys & Metals specific blends. They will then be stocked for delivery to superalloys producers, as well as small melting and casting shops.
"We put the blends together and people melt it for us. Because theyre already in specification, a lot of steel customers dont have to put in a lot of additives like they normally do," Machent said.
"Were essentially renting the time at melting shops, because its a lot more economical to use existing facilities," Ellenbogen added.
The new division will also allow the company to realize synergies with its existing ferroalloys and minor metals trading business, ICD Metals LLC, by using the North Carolina facility to sell smaller quantities of pure metals and ores to smaller consumers, Ellenbogen said.
"ICD is a trader that buys in large quantities. ... When we buy these materials, well move a lot of it to North Carolina where people in our warehouse can break it down into smaller parcels and sell it to smaller customers," he said, adding that it also will also allow ICD to increase its margins in the traditionally "high volume, low margin" trading business.
This capability will set the company apart from warehousing companies that dont offer anything more than storage, according to Machent, adding that he and Conlin had originally offered to buy ABS facility in North Carolina, with the goal of focusing on the ore business, before the facility was sold to ELG Utica Alloys as part of its acquisition of parent company ABS Industrial Resources Ltd.
"We didnt like the idea of just going back to the stainless industry, we wanted to explore more the other way with superalloys and pure metals," he said. "Most of what we did with ABS was 80 to 90 percent scrap. ICD will allow us to do more in the ore market."
ELG Utica Alloys acquired all of ABS Industrial Resources shares effective Feb. 28.
Barbara O Donovan, New York, contributed to this story.