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 AMM.
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).