Commercial Metals Co. (CMC) appears to have recently idled one
of its three Texas shredders and to be shipping the feed
material directly to a shredder on site at one of its
Texas-based steelmaker and metals recycler has stopped running
the Vinton shredder, but continues to buy material at the
location. The material is reportedly then being transported 600
miles via rail to the companys Seguin melting operation,
also in Texas, which is equipped with a shredder and is capable
of melting 1 million tons of raw steel annually.
didnt respond to a request for comment as of Dec. 20.
One supplier said that
a large baler has been brought to Vinton to prepare the
feedstock it purchases there for shipment to Seguin.
"It makes perfect
sense to me. Having a shredder at the mill gives you a huge
advantage, and all I have to do is rail and ship the material,"
according to a source that supplies the company. The transfer
eliminates handling costs in Vinton, and the mill consumes the
scrap so there is no outbound freight on processed scrap.
The company also owns
shredders elsewhere in the state, in Corpus Christi and Dallas.
The company also had a shredder in Beaumont, but it was
dismantled last year, according to numerous sources. Beaumont
is now used as a collection facility to provide feed for the
report notes the company has three Texas shredders, which
further suggests the Beaumont shredder is now gone.
A number of sources
pointed to persistant, unconconfirmed reports that the Vinton
shredder will be dismantled and rebuilt on the property of the
CMC Phoenix rebar mill in Arizona, which has an annual capacity
rating of 280,000 tons. However, CMC has no shredder or
recycling assets in Arizona, according to its website.
Original plans called
for installing a shredder at Phoenix, according to a CMC
The Vinton shredder is
a 6,000-horsepower Prolerizer that is at least 20 years old but
is outfitted with a downstream system that was upgraded after a
fire about five years ago, the source said.
CMC might upgrade the
Prolerizer and "marry" it to the Vinton downstream, the source
"This could be part of
their strategy to install a shredder and build up a network of
suppliers there," a second Texas recycler said.
The CMC source said
that it is part of the companys plan to focus more on the
steelmaking side of the business and use its scrap assets only
to feed its mills.
recently sold its Laredo, Texas, scrapyard after shutting it
down Aug. 29. An inquiry by AMM revealed the phone
number at that location was unchanged, and a receptionist there
acknowledged the facility is now under new ownership.
Numerous sources also
suggested that CMC is in the process of buying Newell Recycling
of San Antonio LP, with plans to shut down this shredder and
send the material to Seguin.
A Newell executive
said that any comment on the matter had to come from CMC.