Cranford, New Jersey-based holding company Metalico, Inc. announced Monday that it is escalating plans for new equipment in Buffalo, New York while suspending shredding activity in Youngstown, Ohio as it upgrades that site.
In February, Metalico announced the purchase of a 44-acre parcel of land in Buffalo to house a 80" by 104" scrap metal shredder. After additional reviews of market opportunities, however, Metalico has decided to build a larger 96" by 104" shredder and to upgrade the facility's contemplated downstream non-ferrous metals processing and recovery systems.
In a separate decision, while Metalico had been considering a potential relocation of its Division Street operations in Youngstown, Ohio and attendant facility improvements for over a year, the company has elected to remain at its existing location. Still, Metalico will proceed with plans to overhaul and upgrade the Division Street location and the Warren, Ohio buying site in anticipation of potential expansion of its business activities in the Youngstown/Warren, Ohio market.
As part of the Youngstown improvement plan, Metalico will shut down and dismantle its aging Youngstown shredder in early April. The Youngstown yard will continue to purchase shredder feedstock but will forward materials to Metalico's Neville Island shredder in Pittsburgh until such time as Youngstown may restart its own shredding capability.
Carlos E. Agüero, Metalico's President and Chief Executive Officer said, "We are very optimistic that first quarter results will reflect an improving economy, strong commodity pricing environment and the significant benefits of our broadly diversified operations."