Scrap Company of the Year : Large
Scrap Metal Services LLC (SMS) is a supplier of ferrous and non-ferrous scrap commodities to both domestic and international consumers. Burnham, III.-based SMS has seen revenue growth of more than 270 percent over the past five years. The growth in employees and other factors also has been significant, and company forecasts for the next five years are bullish. During the past year, SMS has acquired Paul’s Auto Yard Inc. and its subsidiary, Shafer’s Auto Yard Inc., two automotive dismantling, recycling and core auto parts resellers with yards in Indiana and Michigan. SMS was awarded a new mill services contract for the creation of a new slab conditioning and scarfing facility at Severstal North America Inc. in Dearborn, Mich., and has been awarded a U.S. Navy contract to dismantle an aircraft carrier, the first supercarrier to be dismantled in the United States. It also has expanded into Mexico. SMS executives attribute the company’s growth to a willingness to diversify and expand into entirely new areas of business, even in difficult economic times. The company also prides itself on its reliability in shipping quality products regularly with minimal issues from buyers. At the scrapyards themselves, SMS has implemented new software that allows it to keep accurate records and pictures of materials purchased. It has converted its payment system, added more secure anti-theft devices and controls, and adopted stringent environmental standards that include radioactive material detectors. Additionally, SMS has developed safety and environmental programs to help ensure that employees share a safe and healthy workplace. SMS specializes in scrap processing, scrap management and consulting, scrap brokerage, steel mill services, intcrmoda 1/rail car decommissioning, ship recycling and remediation, and shredding and dismantling services. SMS said it will continue to explore other niche businesses and to expand through acquisitions or by opening other greenfield operations as strategic opportunities present themselves.
Scrap Metal Services LLC (SMS) installed two 60,000-cubic-feet-per-minute baghouses that resulted in a zero-emission environment at its Coatesville, Pa., mill service location. The system, designed to handle torch cutting indoors, also includes 120 high-efficiency particulate air filters that have 400-horsepower fans on each side. The Burnham, Ill.-based company also is an active participant in the Occupational Safety and Health Administration’s voluntary protection program, which allows its on-site safety team to work to identify best practices and implementation of procedures. On-site environmental and safety teams meet weekly with employees to educate staff on various concepts and programs. SMS also installed new Siemens AG motor drives to efficiently run and increase power in its automotive shredder in Brownsville, Texas, resulting in a 90-percent-plus power factor, up from 70 percent previously. It also decreased peaks in surges that the local city-owned utility faced during high-demand times. SMS also installed a wastewater treatment plant that separates more than 1 million gallons of oil from water, and installed cutting pads for storm-water management practice*. These pads filter water through limestone and have plastic liners so that any rain is contained in a tank, protecting land and water from contamination from various metals. SMS also provided recycling expertise to help the Brownsville government create a sustainable raveling program. After several aborted attempts on its own to create recycling programs, the city was able to use SMS’ help in establishing a master recycling plan, which has been in a testing phase for more than seven months. SMS specializes in scrap processing, scrap management and consulting, scrap brokerage, and steel mill and other services.
Best Mergers & Acquisitions
Bumham, Ill.-based Scrap Metal Services LLC (SMS) in January acquired Paul’s Auto Yard Inc. and its subsidiary, Shafer’s Auto Yard Inc., two automotive dismantling, recycling and core auto parts resellers with yards in Indiana and Michigan. The acquisition allowed SMS to diversify its scrap recycling portfolio and increase its scrap tonnage as well as add to its core business units. SMS formed a joint management team with Paul’s Auto Yard president Paul Shafer and his current management staff, which had built up a company with eight self-service auto parts facilities. As part of the transition, SMS is investing in software to track all vehicles at each location and identify similar parts that are shared among manufacturers and models, giving customers a better tool for finding inventory. SMS executives said that in any expansion or acquisition they value integrity, problem-solving skills and teamwork abilities—the same values that SMS officials said have been used to propel the company’s success. However, SMS also said it pursues due diligence before committing to acquiring a company to join its family of businesses. This year’s move follows the 2012 acquisition of ship recycling company All Star Metals LLC; and All Star Shredding LLC, both of Brownsville, Texas. All Star Shredding, which processes obsolete and industrial scrap using a Newell 98-104 shredder, is capable of producing 180,000 gross tons annually. SMS specializes in scrap processing, scrap management and consulting, scrap brokerage, steel mill services, intermodal/rail car decommissioning, ship recycling and remediation, and shredding and dismantling services.