NEW YORK Hub
Scrap Metals LLC has acquired a 19-acre property in
Pennsylvania as it looks to expand its geographic
The company, which has
outgrown its existing two-acre facility in Hagerstown, Md.,
intends to develop only 10 acres of the new Greencastle, Pa.,
site for the expansion, which is slated to be completed by the
end of this year.
Hub Scrap owner Greg
Dahbura told AMM that work at the new site began last
month after a local town planning commission approved
conditional use of the property.
"We intend to either
expand our business or relocate to the new site from the
Hagerstown location," he said.
The cost for the
expansion is "in the low seven figures," Dahbura said.
"We dont intend
on purchasing any significant processing equipment at the new
facility besides possibly a baler and a mobile shear. We feel
that the local market is oversaturated on processors, but it
makes sense to locate to that facility with a primary focus on
torch cutting and baling, which are good niches," he said.
Hub Scrap processes
about 3,000 tonnes of scrap per month at its Hagerstown plant
and expects this volume to increase once its Pennsylvania
location is operational.
"Our plan is to use
this new facility to better serve our existing accounts. We are
not going to aggressively pursue new accounts," he said. "We
feel that supply is tight in the marketplace and its not
the type of environment to make aggressive investments in
processing capabilities because of the large amount of
processors currently in the business."