Schnitzer Steel Industries, Inc. is engaged in recycling ferrous and nonferrous scrap metal, and used and salvaged vehicles. The company also manufactures finished steel products. In fiscal 2014, the company sold products to customers located in 21 countries, including the United States and Canada. Segments The company operates its businesses in three segments: the Metals Recycling Business (MRB), the Auto Parts Business (APB) and the Steel Manufacturing Business (SMB). Metals Recycling Business segment The MRB segment buys, collects, processes, recycles, sells and brokers ferrous scrap metal (containing iron) to foreign and domestic steel producers, including SMB segment, and nonferrous scrap metal (not containing iron) to both foreign and domestic markets. The MRB segment processes mixed and large pieces of scrap metal into smaller pieces by crushing, sorting, shearing, shredding, and torching, resulting in scrap metal pieces of a size, density and metal content required by customers to meet their production needs. Products: The MRB segment sells both ferrous and nonferrous scrap metal. Ferrous scrap metal is a key feedstock used in the production of finished steel products and is primarily categorized into heavy melting steel (HMS), plate and structural (bonus) and shredded scrap (shred), although there are various grades of each category depending on metal content and the size and consistency of individual pieces. The company’s nonferrous products include aluminum, copper, stainless steel, nickel, brass, titanium, lead, high temperature alloys and joint products, such as zorba (primarily mixed nonferrous material) and zurik (predominantly stainless steel). The MRB segment delivers recycled ferrous and nonferrous scrap metal to foreign customers by ship and to domestic customers by barge, rail and over-the-road transportation networks. Customers: The MRB segment sells processed nonferrous scrap metal to specialty steelmakers, foundries, aluminum sheet and ingot manufacturers, copper refineries and smelters, brass and bronze ingot manufacturers, and wire and cable producers worldwide. Auto Parts Business segment The APB segment procures used and salvaged vehicles and sells serviceable used auto parts from these vehicles through its 62 self-service auto parts stores located across the U.S. and Western Canada. The remaining portions of these vehicles, consisting primarily of autobodies and major parts containing ferrous and nonferrous materials, such as engines, transmissions, alternators and catalytic converters, are sold to metals recyclers, including the MRB segment where geographically feasible. The APB segment sells used auto parts from each of its self-service retail stores. Customers: Self-service stores serve customers who are looking to obtain serviceable used auto parts. These customers remove the used auto parts from vehicles in inventory without the assistance of store employees. In addition, the APB segment sells ferrous and nonferrous material obtained from end-of-life vehicles to various wholesale buyers, including the MRB segment and third party recycling yards throughout the U.S. and Western Canada. Steel Manufacturing Business segment The SMB segment operates a steel mini-mill in McMinnville, Oregon that produces a range of finished steel products using recycled metal and other raw materials. The MRB segment is the sole supplier for the SMB segment’s scrap metal requirements. The SMB segment’s melt shop includes an electric arc furnace (EAF), a ladle refining furnace with steel chemistry refining capabilities, and a five-strand continuous billet caster, permitting the mill to produce special alloy grades of steel not produced by other mills on the U.S. West Coast. The SMB segment produces semi-finished goods (billets) and finished goods, consisting of rebar, coiled rebar, wire rod, merchant bar and other specialty products. Semi-finished goods are predominantly used for the SMB segment’s finished products, but also have been produced for sale to other steel mills. Rebar is produced in either straight length steel bars or coils and used to increase the tensile strength of poured concrete. Wire rod is steel rod, delivered in coiled form, used by manufacturers to produce various products, such as chain link fencing, nails, wire and stucco netting. Merchant bar consists of round, flat, angle and square steel bars used by manufacturers to produce various products, including gratings, steel floor and roof joists, safety walkways, ornamental furniture, stair railings and farm equipment. The SMB sells directly from its mini-mill in McMinnville, Oregon and its owned distribution center in El Monte, California (Los Angeles area). Customers: The SMB segment’s customers are principally steel service centers, construction industry subcontractors, steel fabricators, wire drawers and major farm and wood products suppliers. Competition: The SMB segment’s primary domestic competitors for the sale of finished steel products include Nucor Corporation’s manufacturing facilities in Arizona, Utah and Washington; Gerdau Long Steel North America’s facility in California; and Commercial Metals Company’s manufacturing facility in Arizona. Significant Events In November 2013, the company acquired all of the equity interests of Pick A Part, Inc., a used auto parts business with one store in the Olympia metropolitan area in Washington. Regulations The company’s businesses are subject to extensive local, state and federal environmental protection, health, safety and transportation laws and regulations relating to, among others: The U.S. Environmental Protection Agency (EPA); Remediation under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA); The discharge of materials and emissions into the air; The prevention and remediation of soil and groundwater contamination; The management and treatment of wastewater and storm water; Global climate change; The treatment, handling and/or disposal of solid waste and hazardous waste; and The protection of its employees’ health and safety. History Schnitzer Steel Industries, Inc. was founded in 1946.
schnitzer steel inds inc-a
299 SW Clay Street
Portland, OR 97201
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