PITTSBURGH Steel City Recycling LLC, a conglomerate of industry veterans, has acquired Sims Metal Management Ltd.s shredder plant in Birmingham, Ala., and a scrap processing yard in West Point, Miss., to serve as its flagship for the launch of a regional effort.
The deal had been in the works for some time (amm.com, April 8
Sims Metal has officially exited the Birmingham market but is still active in the Alabama and Mississippi markets, a company spokesman told AMM
Birmingham-based Steel City Recycling is a joint venture that comprises Danny, Rick and Marty Rifkin of Waterloo, Ind.-based MetalX LLC; George and Paul Dreher of Birmingham-based Jefferson Iron & Metal Brokerage Co.; and John and John W. Marynowski of Atlanta-based Intonu LLC.
The three families also hold a stake in ARC Alabama LLC, a recycling entity that can process 250,000 tons per year of auto shredder residue.
Were looking forward to an opportunity to build a solid new business in the South. Despite tough conditions, we think our focus on business fundamentals, customer service, and our employees will result in the growth of a great company, John Marynowski said.
Chuck Miller, who will serve as the companys president, most recently worked as a regional manager for Commercial Metals Co.s recycling division. Miller will initially focus on the processing capabilities that were part of the deal.
A 6,000-horsepower shredder, two Harris shears, an HRB-type nonferrous baler, and a wire-chopping line to recover aluminum and copper from insulated wire and cable were included in the sale.
Industrial customers and consumers will be serviced through a fleet of trucks, trailers and containers. The two facilities will initially employ 60 workers but may have as many as 100 employees within a few years.
We expect the purchase of these facilities to establish a foundation for the growth of a leading regional scrap company. Were also very proud to be able to provide new jobs in a still-difficult environment, Paul Dreher said.
The scales will open July 29. The company received approval from the Birmingham City Council for a scrap metal processors license July 23 and a business privilege license was obtained in West Point July 10.