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May 03, 2022 | 09:31 AM | London | Amy Hinton

Tags  Encore Recycling, Schnitzer Steel, Craig Blase, auto shredder, ferrous scrap

Schnitzer Steel acquired Lithonia, Georgia-based Encore Recycling for an undisclosed sum on Friday April 29.

The former has assumed ownership of Encore's 30-acre site in the Atlanta Metro Area, which comprises two full-service recycling facilities including an auto shredder, ferrous downstream separating system, wire chopping line and recycled auto-parts business.  Schnitzer will add Encore's 90,000 tons of ferrous scrap, 14 million lbs of nonferrous scrap and 20,000 end-of-life vehicle processing capabilities to its portfolio courtesy of the deal. The recycler plans to invest in green measures at its new asset, including the installation of a shredder enclosure and emission control system in addition to upgrading the site's stormwater infrastructure and introducing a refrigerant recovery management program approved by the Environmental Protection Agency.  Schnitzer's latest purchase brings its tally of Southeastern US recycling operations to 24 and marks its first foray into shredding operations in the region. The deal comes hot on the heels of its buyout of eight sites from Columbus Recycling in late 2021.  Indeed this latest transaction follows a slew of deals done in the Blase brothers' lengthy scrap market tenure.  Encore Recycling was started by brothers Craig, Gary and Kevin Blase in 2013 following the divestiture of their initial venture, Blaze Recycling and Metals, to a private equity firm in in 2007. Blaze Recycling and Metals subsequently merged with fellow Georgia recycler Newell Recycling to form Newell Recycling Southeast in 2014. SA Recycling acquired a 50% stake therein in 2016. The family subsequently re-entered the scrap arena via Encore Recycling following the expiration of a 5-year no compete clause. The company expanded to include a scrap yard and parts business in 2019, all of which will now fall under Schnitzer’s auspices. "The addition of the Encore assets is consistent with our growth strategy to expand metals recycling operations to meet anticipated increases in steel and nonferrous metals demand driven in part by the global transition to low carbon technologies. While a variety of solutions will be required as industries, communities, and governments actively pursue carbon reduction, the increased use of recycled metals is one path that is immediately achievable,” Schnitzer chief executive officer Tamara Lundgren said of the acquisition.