The existing facility is strategically located to allow the Burnham, Ill.-based SMS to cost-effectively transport shredder feedstock scrap, including vehicles and obsolete scrap, from its nine northwest Indiana and Chicago retail facilities and auto parts operations, the company said in a news release.
SMS said it will take the shredded ferrous scrap produced and sell and ship by truck and rail to steel mills in the Midwest for re-melting into new steel products. The company will send the metallic shredder residue (Zorba and Zurik) to SMS’ Non-ferrous Division’s recently opened Heavy Media Plant in Blue Island, Ill., for further separation of the various metals recovered in the shredding process.
“We have been looking at siting a major auto shredding operation in the Chicagoland or Northern Indiana area for some time to primarily process our company’s growing shredder feedstock,” said SMS CEO Jeffry Gertler. “Rather than add another shredder in this highly competitive marketplace, acquiring an existing shredding operation in the area, which met our company’s environmental
standards, was economically prudent and strategically a good fit.”
SMS operates more than 20 scrap processing, steel mill support services, ship breaking and oil rig dismantlement intermodal/truck/railcar dismantling facilities and auto salvage and parts sales yards in the United States and Mexico.