Western Metals plans new facility in Albuquerque

Western Metals Recycling LLC (WMR) announced plans to open a new scrap metal recycling plant in Albuquerque, New Mexico adjacent to its sister company’s used auto parts retail store, U-Pull-&-Pay (UPAP). The WMR facility will utilize a portion of the UPAP property, which comprises more than 50 acres in unincorporated Bernalillo County. WMR and UPAP are wholly owned by The David J. Joseph Company (DJJ), a Cincinnati-based subsidiary of Nucor Corporation.

WMR has a two-part plan for the Albuquerque location. Phase 1 includes a scrap metal recycling plant, scheduled to be opened by early summer 2010, pending all appropriate permits, licenses, and required improvements. At this facility, WMR will buy common household ferrous and nonferrous scrap metal items which may include appliances, sheet metal, automobiles, aluminum cans and other aluminum, copper and brass products. Customers will be paid on site for their scrap metal. All metals purchased will be sorted and then transferred off-site for processing. This phase will require a staff of 5-10 full time employees, pending market conditions.

Phase 2 will improve the facility to accommodate on-site processing activities, including the installation of a 4000 HP automobile shredder. This expansion plan is consistent with The David J. Joseph Company strategy of strengthening its existing footprint in the scrap processing industry, and takes advantage of vertical integration within the company and the ancillary benefits of being located adjacent to the UPAP store.

UPAP’s self-service business model allows customers to bring their own tools to pull used auto parts for costs below market rates. Inventories are turned over on a regular basis, with harvested auto hulks crushed and recycled at DJJ processing facilities. Upon the completion of WMR’s proposed Phase 2, the harvested autos from this UPAP location will be recycled in Albuquerque. The recovered metals will then be shipped to designated end-users for refinement. Phase 2 improvements will increase the number of employees at this WMR facility to 30-50.