LOS ANGELES Schnitzer Steel Industries Inc. is challenging the right of a recycler in Eugene, Ore., to install its first shredder.
Pacific Recycling Inc. is looking to "break dirt" on a medium-size shredder sometime in the second quarter, Mark Losco, capital improvement manager for the privately owned company, told AMM.
Pacific Recycling late last year received favorable interpretations of city regulations that would allow it to install a shredder in a "heavy-use" industrial zone, according to company executives.
Portland, Ore.-based Schnitzer subsequently requested interpretations of city codes, arguing that Pacific Recyclings installation of a metal shredder is not permitted in the industrial zone in which it is located.
A city official is expected to issue a decision April 11 affirming, reversing or modifying the earlier code interpretations that supported Pacific Recyclings plans.
"We really dont believe this is so much (a matter of) code interpretation," said Rod Schultz, Pacific Recyclings owner, who views Schnitzers actions as intended "probably to keep one less person from installing another shredder."
A Schnitzer Steel spokesman could not be reached for comment.
Schultz, who founded Pacific Steel in 1985 and has one facility, said his company is not related to Pacific Steel & Recycling Inc., which is based in Great Falls, Mont., and operates throughout parts of the Pacific and Mountain Northwest.
An attorney for the city of Eugene, who said that Schnitzer had filed requests for code interpretations not only locally but on the state level, declined to discuss details of the dispute.