Marc Olgin has re-emerged in the scrap metal industry in the United States after sitting out for one year due to a non-compete agreement, opening the doors on a 9.5-acre facility in Phoenix earlier this year.
The 38-year scrap metal industry veteran and silent partner Hilton Efune incorporated the company, Olgin+Efune Recycling Co, in November 2017. Olgin serves as the company's chief executive officer.
The facility, which has rail access and is close to two major highways, is open to the general public but primarily receives scrap from demolition projects and other dealers. There are five buildings on the site that have 100,000 square feet under roof. The company invested in equipment, including a nonferrous baler and portable shear and other machinery such as cranes, front end loaders and forklifts.
Volumes at the facility have doubled since the initial ramp-up period, and the company is 60% ferrous and 40% nonferrous, Olgin said, noting that long relationships in the business have helped to bring tons in from opening day.
The company has also set its sights on landing industrial accounts anywhere in the country and recently was awarded one in northwestern Pennsylvania, he said, without getting into specifics.
Starting from scratch is not as daunting as it would seem, Olgin said, noting that he grew up in and around the business.
“I have been doing this since I got out of college in 1982 and this is all I know. Starting up in boom or bad times is not a problem. Being green and not knowing the business would be difficult. Plus it helps to have relationships in the industry,” he said.
Olgin’s family founded Liberty Iron & Metal in 1932 and then aligned itself with Scholz Holding GmbH in 2007. Scholz agreed to be taken over by Hong Kong-based Chiho-Tiande Group Ltd, which resulted in Olgin selling his 33% stake in the company and exiting the industry due to the non-compete clause in the agreement.
A second phase of the non-compete, which expires in November, prevents Olgin from installing a shredder, although he said he has no intentions of adding one anytime in the future.
“Shredder? Absolutely not. There are two big shredders in town that don’t have enough capacity, and so I don’t think that’s a good idea,” he said.
Olgin closely follows the export market because a lot of markets in the western US are driven by what happens on the West Coast and Mexico, he said.
Brad Efune (Hilton's son) and Chad Olgin (Marc's son) also work at the company, serving as co-presidents with the former focused on nonferrous and the latter overseeing the operations.