Cranford, New Jersey-based scrap recycler Metalico, Inc. announced Friday the acquisition of a portion of the former Bethlehem Steel/Mittal complex in Western New York. Metalico bought the abandoned galvanizing mill, a 177,550-square-foot building on a 44-acre parcel, to be converted into a new shredding facility.
The new shredder will be capable of processing 100-120 tons of scrap per hour, and the installation will include a new downstream separation system to maximize efficiency. Annually, Metalico expects to produce 120,000 tons of high quality shredded steel scrap through its own feedstock and material purchased around the region, amounting to over $50 million in annual sales once the facility is fully operational (by the end of 2011).
Metalico's capital investment for the acquisition, including the property, equipment and related improvements, is expected to be in the range of $10 million. Additionally, the company plans to add two more scrap purchasing centers in the area to better supply the new shredder.
Metalico currently operates 26 recycling facilities in New York, Pennsylvania, Ohio, West Virginia, New Jersey, Texas, and Mississippi.