PITTSBURGH Alter Trading Corp. has announced plans to invest $20 million at one of its four auto shredding plants in Iowa.
The St. Louis-based recycler has selected its Council Bluffs site for an automotive shredder residue (ASR) plant, with plans to break ground at the end of April. Alter, which has operated at the 29.28-acre site for half a century, expects the ASR plant to be running by the end of the year.
The $20-million investment includes $16.3 million for the ASR plant, with the remaining amount to be allocated for construction of a nonferrous structure to service peddlers and contractors that is expected to be built in 2014.
The system will enable Alter to capture more metallics, increase operational efficiencies and allow the company to produce products that are more suited to customer specifications. The system will also reduce the amount of material that is sent to landfills.
This facility will handle ASR processing (for) Council Bluffs and potentially other facilities as we balance capacity in our ASR processing in the Midwest, Ronak Shah, Alters vice president of strategy and technology, told AMM.
The metal recycler will receive $887,000 in tax credits and sales tax refunds for the project, which is expected to create 15 jobs, from the Iowa Economic Development Authority (IEDA) board. The incentive includes a $597,000 investment tax credit and a $290,000 credit for the refund of sales, service or taxes used during construction, an IEDA spokeswoman said.
The plant is similar to an ASR recovery unit that was installed in 2011 at the companys Davenport, Iowa, shredding plant.
After the success of Davenport, and as part of our reinvestment in the business, this is an area that is being seen as a technological and process improvement. Alter is committed to staying abreast of the latest technology, Shah said.
Davenport has met all of our expectations in both metals recovery and process stability. In addition, it has been a win-win with the community as we have hired more staff than originally expected to operate the facility at its full performance, Shah added.
The Council Bluffs ASR plant is being designed with future upgrades in mind, including a plastics recovery system.