PITTSBURGH PSC Metals
Inc. plans to shutter half a dozen scrapyards and idle some
shredding assets in the second quarter.
"We are making the decisions
that are necessary to keep our business focused on our overall
success strategies," Robert B. Brewer, chief executive officer
of the Mayfield Heights, Ohio-based recycler and broker, told
Slated for closure in the second
quarter of this year are facilities in Gadsden, Ala.;
Scottsboro, Ala.; Dalton, Ga.; Shelbyville, Tenn.; West
Knoxville, Tenn.; and Springfield, Ohio.
Additionally, the shredding
operations at the companys Wooster, Ohio, and Festus,
Mo., yards are now idle.
Brewer took the helm of PSC
Metals last August (
amm.com, Aug. 29) and since then has been
working to turn the company around.
PSC Metals in the fourth quarter
of 2012 cut its work force (
amm.com, Nov. 9), and shut its facilities in
Greenville, Tenn., and Rome, Ga.
Industry veterans call the moves
prudent and necessary. "The scrap industry is like it was back
in 1982, which was an ugly time. Our company is not running its
shredder every month, and we have divested of money-losing
propositions. ... Everyone needs to take a similar cue and
start closing down yards. Brewer seems like he is doing the
right thing. This is just the tip of the iceberg industrywide,
and I wonder who else is going to get smart," a competitor of
PSC Metals said.
"Brewer is my direct competitor,
but he has all my respect," according to a second competitor,
who sells into the Ohio and Pennsylvania markets. "Id
invest in this company now, because this is a guy who actually
has a plan. PSC is a big companyjust wait, this news will
start a wave of closures."
The company, a division of New
York-based Icahn Enterprises LP, posted a $6-million net loss
in the first quarter, noting that competition for feedstock
continues to hurt margins (
amm.com, May 6).