Profile: Metalico Inc (MEA.A)
19 Dec 2013
Metalico, Inc. (Metalico), incorporated in 1997, operates in three business segments: ferrous and non-ferrous scrap metal recycling, Scrap Metal Recycling), platinum group and minor metals recycling (PGM and Minor Metals Recycling) and lead metal product fabricating (Lead Fabricating). The Company’s operating facilities, as of December 31, 2009, included include twenty scrap metal recycling facilities, including a combined aluminum de-oxidizing plant, six PGM and Minor Metal Recycling facilities and four lead product manufacturing and fabricating plants. The Company markets a majority of its products on a national basis but maintains several international customers. On January 31, 2011, the Company acquired Goodman Services, Inc. Effective July 23, 2013, Metalico Inc acquired Segel & Son Inc, which is a recycling company.
Scrap Metal Recycling
The Company's operations primarily involve the collection and processing of ferrous and non-ferrous metals. The Company collects industrial and obsolete scrap metal, processes it into reusable forms and supply the recycled metals to its ultimate consumers, including electric arc furnace mills, integrated steel mills, foundries, secondary smelters, aluminum recyclers and metal brokers. The Company acquires unprocessed scrap metals primarily in its local and regional markets and sell to consumers nationally and in Canada as well as to exporters and international brokers. The Company is also able to supply quantities of scrap aluminum to its aluminum recycling facility, catalytic converters to its PGM recycling subsidiaries and scrap lead to its lead fabricating subsidiaries. In addition to buying, processing and selling ferrous and non-ferrous scrap metals, the Company manufactures de-oxidizing aluminum (de-ox), a form of alloyed aluminum, for the steel industry. The Company's ferrous (iron-based) products primarily include sheared, bundled and shredded scrap metal and other scrap metal, such as plate and structural, turnings, busheling and broken cast iron.
The Company also sorts, process and package non-ferrous metals, which include aluminum, copper, stainless steel, brass, nickel-based alloys and high-temperature alloys, using similar techniques and through application of its technologies. Non-ferrous scrap is sold under multi-load commitments or on a single-load spot basis, either mill-direct or through brokers, to intermediate or end-users which include smelters, foundries and aluminum sheet and ingot manufacturers.
PGM and Minor Metals Recycling
The Company recycles the platinum group metals (PGMs), platinum, palladium, and rhodium, from the substrate material retrieved from catalytic converters. Converters for recycling are obtained from networks of auto dismantlers, scrap yards, parts dealers and manufacturers. Minor Metals recycling includes such metals as molybdenum, tungsten, tantalum, niobium, rhenium and chrome. The Company's products are sold nationally into diverse industries such as roofing, plumbing, radiation shielding for pharmaceutical and power generation, electronic solders, ammunition, automotive, Department of Defense contractors, and others.
Through four physical operations located in three states, the Company consumes approximately 40 to 45 million pounds of lead metal per year that are utilized in more than one hundred different base products. Its products are sold nationally into industries, such as roofing, plumbing, radiation shielding, shielding for pharmaceutical and power generation, electronic solders, ammunition, automotive, Department of Defense contractors, and others. Its Lead Fabricating segment has facilities in Birmingham, Alabama; Granite City, Illinois; Healdsburg, California, and Ontario, California.
The Company’s sales are concentrated within four main product lines: sheet lead, shot, extruded strip lead, and cast lead. Sheet lead is produced in various sizes, thicknesses, and alloys based upon customer requirements. Sheets are rolled to various thicknesses, cut to customer specifications and shipped to roof flashing manufacturers, fabricators of radiation shielding, sound attenuation and roofing contractors and other users. Shot is produced and sold nationwide primarily to the recreational re-load market under the Lawrence and West Coast Shot brands. The Company also sells shot to cartridge manufacturers and industrial consumers. Shot is produced in several lead alloys and sizes. Strip lead is produced in rolls of various widths and lengths. Strip lead is used primarily in the construction industry. Cast lead is typically sold in pig, ingot, brick and rectangular form. Extruded wire and bar are used in plumbing applications, stained glass production, the electronics industry and the radiation shielding industry. Extruded pipe is used in the plumbing and roofing industries. Extruded products are available in flats, rounds, stars, pipe, and custom designed configurations. Other lead products include roof flashings, lead wool, anodes and babbitt. Machined lead parts are sold to a variety of industries and consumers.
186 North Avenue East
CRANFORD NJ 07016