Profile
The Metals Recycling Business is one of the three vertically integrated business units that make up Schnitzer Steel Industries, Inc. As one of the nation’s largest recyclers of scrap metal, we collect, process, recycle, trade and broker metal, both ferrous (containing iron) and nonferrous (not containing iron). We pride ourselves on being a very efficient, low cost scrap metal processor.
Scrap metal is purchased from industrial manufacturers, railroads, auto salvage facilities, metal dealers and individuals. The metal generally comes from obsolete machinery and equipment such as autos, railroad cars, railroad tracks, home appliances and demolition metal from buildings and other obsolete structures. As part of our vertical integration, we also purchase crushed auto bodies from our Auto Parts Business, where geographically feasible. Purchased materials arrive at our 42 facilities daily by ship, barge, rail, truck, car and even individuals on foot.
Our proximity to large industrial suppliers and major railroad routes, deep water ports and major highways provides us with a competitive advantage. Our West Coast facilities allow us to purchase scrap material from Hawaii, Central and Northern California, northward up the West Coast to Western Canada and Alaska and to the east including Idaho, Montana, Utah and Nevada. Our Northeastern U.S. facilities provide access to suppliers in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. Meanwhile, our Southeastern U.S. facilities allow us to purchase scrap metal from Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. Finally, our facilities in Puerto Rico allow us to purchase scrap metal from Puerto Rico and other Caribbean nations.
Once the scrap metal arrives at one of our yards, it is processed by sorting, shearing, shredding, torching and baling. This results in metal processed into pieces of a size, density and purity required by steel mills and foundries for melting and use in the production of new finished steel and other products. Smaller, more homogeneous pieces of processed metal have more value because they melt more easily than larger pieces and more completely fill the "charge buckets" that are used to load a steel mill or foundry furnace, resulting in lower energy usage and shorter cycle times.
One of the most efficient ways to process metal is to use shredding systems, such as those installed at nine of our facilities. In a few seconds, a shredder can reduce auto bodies, home appliances and other metal into fist-sized pieces. Shredded material is then carried by conveyor under magnetized drums which attract the ferrous metals and separate them from the nonferrous metals. The remaining nonferrous metal is sold either sorted and graded or unsorted. Processed recycled metals are sold to domestic and foreign customers including ferrous metals sold to our Steel Manufacturing Business (highlighting another example of our company’s vertical integration). We have developed efficient nationwide transportation networks consisting of extensive truck fleets, accessible rail systems and seven export facilities located at deep water ports. Our network is designed to meet the needs of our suppliers and customers, both large and small. In fiscal 2009, our recycling facilities processed nearly 4.2 million tons of ferrous metal and nearly 400 million pounds of nonferrous metal.
As part of our commitment to being a very efficient, low cost scrap processor, we are constantly investing in improvements to our facilities. One major initiative has been the installation of new mega-shredders at our export processing facilities in Oakland, California; Everett, Massachusetts; Portland, Oregon and Tacoma, Washington. This equipment has helped us lower conversion costs by increasing throughput while improving energy and labor efficiencies. In addition to the extra capacity, mega-shredders shred more efficiently and process a greater range of materials, including larger and thicker materials which result in an end product which is denser. In conjunction with new state-of-the-art nonferrous metals recovery systems, mega-shredders provide a more pure (refined) and preferable form of ferrous metal which can be used even more efficiently by steel mills. We have also rolled out new induction sorting systems which have helped further improve the recoverability of stainless steel and other valuable nonferrous metal. Improvements have also been made to our port facilities to improve loading/unloading capacity and efficiency.
We are also involved in several joint ventures that provide us additional opportunities for recycling metals and other materials. These businesses provide metals recycling facilities; removal and disposition of surplus railroad assets (such as railroad track); and demolition, dismantling and environmental remediation services.
Vertical integration is a large part of Schnitzer Steel’s strategy. As such, the Metals Recycling Business purchases crushed auto bodies from Auto Parts Business facilities (where geographically feasible) and sells processed recycled ferrous metal to the Steel Manufacturing Business.
Doing business with Schnitzer is easy. For our suppliers of scrap metal, we have modern unloading equipment and convenient hours. We provide industrial suppliers with large onsite containers with pick up services included. On large accounts we hire dedicated onsite staff and provide dedicated facilities and exclusive account executives. Some locations provide special equipment like mobile cranes for special reclamation projects and other material handling needs. For our overseas customers of processed scrap metal, we can ship by bulk or by container.
We are always looking for strategic partners, alliances and other business opportunities.
By The Numbers – Fiscal 2009
| Recycled Ferrous |
| Metal processed and exported |
3.44 million long tons |
| Metal processed and sold domestically (including metal sold to Steel Manufacturing Business) |
753,000 long tons |
| Total |
4.19 million long tons |
| Recycled Nonferrous |
| Metal processed and exported |
294 million pounds |
| Metal processed and sold domestically |
103 million pounds |
| Total |
397 million pounds |
For fiscal year 2009 (ended 8/31/2009)
Return to About page