Hawaii Metal Recycling sold
The acquisition by Oregon-based Schnitzer Steel allows the company to expand on neighbor islands
Hawaii Metal Recycling, the oldest and largest recycling company in the islands, has been acquired by Portland, Ore.-based Schnitzer Steel Industries Inc.
The transaction, which occurred upon the completion of a joint venture between Hugo Neu Corp. and Schnitzer Steel, took effect on Saturday. As part of the agreement, Schnitzer Steel received a $52.3 million payout as well as full ownership of Oahu-based Hawaii Metal Recycling. Schnitzer Steel also received the former joint venture's interests in New England and the assets and related liabilities of Hugo Neu Schnitzer Global Trade.
No immediate personnel changes are expected at Hawaii Metal Recycling, which employs 32 people. However, the infusion of new capital from Schnitzer Steel will allow the company to expand, which will result in additional jobs, said Jim Banigan, Hawaii Metal Recycling's general manager.
Schnitzer is a publicly traded company with a significant presence on the West Coast and the Northeastern seaboard. It also is a used-auto-parts retailer with more than 50 locations across the United States and Canada, and it manufactures finished steel products.
"This is extremely good news for the company," Banigan said. "It will give us a chance to aggressively pursue expansion and growth to the outer islands."
Hawaii Metal Recycling uses contractors to bring in scrap metal from the neighbor islands, but the company expects to open offices on Maui and the Big Island in the near future, Banigan said.
Officials at Schnitzer Steel, one of the nation's largest recyclers of ferrous metals, also are enthusiastic about the acquisition, said John D. Carter, the company's president and chief executive.
"We not only received very attractive scrap metal franchises, but an excellent team of motivated people that have helped build these quality businesses," Carter said.
"We believe these businesses combined with our existing wholly-owned operations will produce significant benefits in making Schnitzer an even greater company in the years ahead."
Hawaii Metal Recycling was established in 1991 as a joint venture between Flynn Learner, a Hawaii scrap metal recycler started in 1949, and Newell Industries Inc.
Since its creation, Hawaii Metal Recycling has recycled nearly 1 million tons of discarded metallic debris, such as abandoned automobiles, appliances, buses, trucks, buildings and movie sets, into raw feed stock.