Metalico acquires 22-acre property in New York
Cranford, NJ— Metalico,
Inc. has agreed to purchase a 22-acre 108,000-square foot property
located in DeWitt, New York. The purchase price was not disclosed.
The Company plans to open a new
scrap processing facility to serve the Syracuse and Central New
York market. The new facility will be operated by Metalico Syracuse,
Inc., a subsidiary of the Company, and will provide ferrous and
non-ferrous scrap handling services to existing industrial accounts,
auto wreckers, dealers and peddlers of scrap metal, who will very
soon have another outlet to sell their scrap to Metalico.
It will also serve as a key buying
center for auto hulks and light iron expected to be transported
to a shredder located near Rochester, New York.
The DeWitt property formerly
housed an aluminum smelting plant operated by Wabash Aluminum
Alloys, LLC. Metalico plans to conduct extensive aluminum processing
activities at the site, including crushing, drying and smelting
aluminum utilizing a reverb furnace technology to produce deoxidizing
aluminum cones and shot which will be marketed to the steel-making
industry. The Syracuse operation will be developed and operated
under the leadership of Jon Marantz, who presently manages the
Company’s aluminum smelting operations in Lackawanna, New
Metalico plans to relocate its
existing Lackawanna de-ox production to DeWitt and to increase
the production capacity gradually, to approximately six million
pounds per month of finished product to further participate in
the United States de-ox market which due to recent plant closures
appears to be underserved. The average price of de-ox products
sold in the marketplace during the last six month has ranged between
$.80 and $1.10 per pound.
The Company expects to commence
scrap operations in DeWitt during the second quarter and to ramp
up aluminum smelting activity through the year, subject to the
permitting process and completion of complementary construction
on the site.