PITTSBURGH Metalico Inc. will exit its joint venture in Cleveland, the company said.
"The Cleveland joint venture was closed because it did not meet our strategic business objectives. We have not determined what the future use of the site will be," Metalico president and chief executive officer Carlos E. Agüero said.
The facility is no longer open to the public and the scrapyard is being cleaned out.
Sources close to the situation said Metalico advised the facility that it must start relying on its own cash flow to remain open.
In December 2012, Metalico took over operations at the Cleveland facility to tap into the strong peddler base in the area as a source to feed its auto shredders (amm.com, Dec. 18, 2012).
The yard was managed by industry veteran Joseph Immormino, who owns another yard in the Cleveland area.
Immormino could not be reached for comment.
Cranford, N.J.-based Metalico announced last week that is plans to sell off its non-core assets (amm.com, June 4), although the Cleveland facility is leased. The annual rent is $108,000 and the lease expires Nov. 30, 2017, according to regulatory filings.