Auto Shredding Company
Auto Shredding Company
Only (2) months left in 2015 and I think that most of those operating in the auto scrap and junk car towing business are hoping the 2016 will bring a reversal in the negative spiraling of the metal commodities. Those seeking where to scrap my car are probably noticing fewer buyers in the market due to the now minimal value of a junk car. Many within the industries of auto scrap and junk car towing have transitioned to other aspects of the business until the prices and overall value of a junk car rebound. Many of the places where to scrap my car are likely doing more road side towing work, repair-oriented work or other related types of work. Our story today takes us to Oregon, where an auto scrap and shredding company is the latest casualty in this recession within the commodities. In the November 2, 2015 edition of registerguard.com, an article was composed by Christian Wihtol that is titled ‘Eugene metals recycler files for bankruptcy protection’ with the following details: “Crunched by heavy debt and weak worldwide metals prices, a major Eugene metals recycling company has filed for bankruptcy. In its Chapter 11 filing with U.S. Bankruptcy Court, Pacific Recycling (PR) owes $22M and has assets of just $11M. The firm owes the city of Eugene $433,000 on a loan made in 2012 to help expand. They are fending off Walla Walla-based Banner Bank’s efforts to seize the firm’s roughly 20-acre Cross Street property, equipment & piles of scrap. With about 20 employees — down from 50— PR buys metal & processes it. It sells the materials on the national & international scrap markets. The company admits it has been hampered by problems with an enormous used-vehicle shredding machine it has spent years planning for and installing and $6.6 million in financing debt for the machine. As metals markets were plunging, PR finally got the shredding machine running this fall.
Rod Schultz, Pacific Recycling’s owner says the closest shredder machines are in the Portland & SF Bay areas. The 4-story-high shredding & sorting machine is built around a shredder into which are poured flattened junk cars, dishwashers, refrigerators, water heaters and more. The shredder chops each item into pieces and the material is on to a network of ramps & conveyors that use magnets, vibration and screens to sift the metals from the debris, such as plastic, fiberglass, foam & wood. The system occupies three acres. Prior to the machine, PR used shears, torches and manual labor, but couldn’t process as much and had to sell at minimal profit. PR has fallen behind on monthly payments. One of the shredder’s motors failed during startup and had to send it back to the manufacturer for repair. Eugene Water & Electric was concerned about getting paid for electricity to run the machine. In September it tried to require the firm to post upfront deposits. Revenues plunged to $15.8 million in the fiscal year from $29.3 million the previous year. PR is operating at a substantial loss–the reasons include low metal prices & large fixed costs. The complete article is available at this link.
It seems that PR’s failure is a combination of three factors:
- Incurring major debt to fund the new shredder
- Inadequate foresight or savings fund to prepare for the implementation (and delays and problems with) the machine
- The massive drop in scrap commodity pricing was devastating
Are you wondering where to scrap my car?
Cleveland Scrap Cars is where to scrap my car for cash in Aurora, Shaker Heights and North Randall. A junk car towing provider that is on-hand 6 days a week to service areas such as Richmond Heights, Solon and Walton Hills. To sell your junk car in Pepper Pike, Aurora or Moreland Hills simply call (216) 282-JUNK. We offer scrap car hauler services aka junk car towing from Lakewood to Twinsburg and Wickliffe to Parma! As mentioned before, the value of a junk car has sharply fallen lately, but we look forward to a rebound. Residents of Euclid, Garfield Heights and Eastlake can receive cash for their cars and same day vehicle removal in most cases.