NEW YORK Sadoff Iron & Metal Co. believes "the growth opportunities are substantial" for its newly opened, 13-acre recycling facility in Lincoln, Neb., chief executive officer Mark Lasky told AMM.
Fond du Lac, Wis.-based Sadoff opened the new facility Oct. 14. The company had said last year that it would replace its previous 2.5-acre Lincoln operation (amm.com, June 29, 2012).
The new site is part of a push by Sadoff to expand its footprint in the state, having purchased Omaha nonferrous recycler Midwest Metals Recycling late last year (amm.com, Sept. 18, 2012).
Sadoff "started looking at this expansion (in Lincoln) two to three years ago," Lasky said, describing the new facility as state of the art. It will handle both ferrous and nonferrous material.
"We were using ancient, vertical downstroke balers before," he commented on the previous operation. "Now, were able to process in two hours what used to take us a day and a morning."
Sadoff entered the Nebraska market in 1999, where it operates two facilities. It also operates another seven facilities in its home state of Wisconsin.
"We look for situations where there are good opportunities to make margins, make good business, be able to reinvest in our operations and become self-sustaining," Lasky said. "I think theres room for more competition out there (in Nebraska)."
Sadoff partnered with the Lincoln Airport Authority to finance and build the new operation, which is located on a repurposed brownfield site previously used by the U.S. Air Force as a fuel storage area. The authority issued industrial revenue bonds to cover the projects $4.5-million cost, which Sadoff will repay through a long-term lease agreement.
The bond agreement is for 30 years, "with multiple options that can take it to 40 or 50 (years)," Lasky said.