Dive Brief:
- Upstate Shredding announced to end its acquisition of Roth Steel, a shuttered scrap metal plant located in the Syracuse, NY, area.
- Upstate, a privately-held scrap metal processor and recycler based in Owego, NY, purchased the facility at an auction; the transaction reportedly cost approximately $625,000.
- Upstate cited that the discovery of large levels of contaminants on site led to the decision to pull from the deal.
Dive Insight:
Records from the New York State Department of Environmental Conservation indicated that hazardous materials were prevalent at the Roth Steel site. The cost to clean up the contaminants would reportedly be at minimum $8 million. Financial liability had the potential to make the costs reach higher.
At the beginning of December, Adam Weitsman, the CEO of Upstate Shredding, said the company is working to develop more sites in the Northeast, as the company announced the purchase of Murtagh Scrap Handling in Rome, NY.
By the end of that month, Upstate announced plans to build a $15 million heavy metals facility at its Owego, NY, site.
In February, Upstate submitted a proposal to acquire the remaining outstanding shares of competitor Metalico. Weitsman held an 11.7% stake in the scrap metal processor.