NEW YORK ICD Group Inc.
is branching out into recycling, processing and trading metals
for the superalloys sector with a new business in
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
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
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
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
"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.