Matlow is acquisition target for Upstate Shredding

Archiv – United States | Upstate Shredding, one of the largest scrap processors on the US East Coast, looks set to take over the operations of Matlow Inc. of Solvay, New York, in an all-cash agreement covering the ferrous and non-ferrous scrap dealer’s assets, land and equipment. The deal, which was scheduled to close in mid-December, includes an upgrade of Matlow’s equipment inventory. United States | Upstate Shredding, one of the largest scrap processors on the US East Coast, looks set to take over the operations of Matlow Inc. of Solvay, New York, in an all-cash agreement covering the ferrous and non-ferrous scrap dealer’s assets, land and equipment. The deal, which was scheduled to close in mid-December, includes an upgrade of Matlow’s equipment inventory.
Matlow, which has been serving the Syracuse scrap metal market for over 90 years, will complement the scrap metal processing operations of Upstate and its sister company Ben Weitsman & Son in Owego, Binghamton and Ithaca. Steve Green, Upstate’s Executive Vice President and former Purchasing Manager for Nucor Steel, will manage the Syracuse operation. Matlow’s former owner Peter Matlow will join the management team.
’The acquisition of Matlow is part of our strategic expansion that is allowing us to offer some of the highest prices paid for scrap metals in the Northeast,’ notes Adam Weitsman, President of Upstate Shredding. ’Syracuse will become a modernized, environmentally-responsible, customer-convenient location. It will become a feeder station for our Owego mega scrap metal processing plant that is in the process of completing a US$ 25 million upgrade to make it one of the most technically advanced and efficient in the world.’ Upstate also plans to open a seven-acre facility at Scranton, Pennsylvania, in the spring of 2010 and is actively looking at other locations in north eastern USA.
Upstate’s new Syracuse operation will operate under the name of Ben Weitsman & Son and will undergo comprehensive renovation to meet the environmental and operational efficiency standards set at other Upstate facilities. This will involve new buildings, complete paving of the yard, the installation of a new stormwater treatment plant, and landscaping for noise mitigation and improved community aesthetics.
Equipment upgrades will include three new Sennebogen cranes, two new mobile shears and a new Harris HRB baler. With the installation of new high-speed conveyors and new container loading systems, coupled with Upstate’s fleet of 1200 roll-on-roll-off containers and direct rail links, the Syracuse location will have access to global scrap metal markets for the first time. Traditionally, Matlow’s sales have been purely domestic whereas exports are now expected to account for 90% of its business to fall in line with Upstate’s sales distribution.
Mr Weitsman concludes: ’The reason for this deal is simply market expansion. Our goal is to make US$ 1 billion of debt-free sales annually. To make it happen, we are seeking acquisitions and aggressively investing in new markets and the latest scrap metal processing technology. We want to continue to deliver the best value to our customers and emerge from the slow economy even stronger.’