Southern Recycling to invest $6M in new Kentucky plant
Bowling Green, Kentucky-based Southern Recycling and its parent company, Houchens Industries, also based in Bowling Green, are preparing to invest $6 million to construct a new, 45-acre facility in that city.
A late October 2017 news release from the Bowling Green Area Chamber of Commerce says the new site will be designed to “improve operations and efficiency of material flow and allow for
In addition to site development, the $6 million the company is investing in the new location will go toward “installing state-of-the-art scrap processing equipment and facilities, which will improve operations and efficiency of material flow,” according to the news release.
Although Southern Recycling and Houchens Industries will supply the majority of the funding, in late October the board of the Kentucky Economic Development Finance Authority approved $100,000 in tax incentives for the project.
Southern Recycling, which started in 1985 as a paper recycling firm, now has curbside operations serving more than 50,000 residents each month. On the scrap metal side, the company processes and ships about 10,000 tons per month.
The company employs 117 people across four locations and has agreed to hire at least four more at the new location.
Southern Recycling says it plans to break ground at the 45-acre site in early 2018.
Cost pressures squeeze margins in CMC’s Americas Mills segment
Irving, Texas-based Commercial Metals Co. (CMC) has announced financial results for its fiscal fourth quarter and year ended Aug. 31, 2017, which show an increase in net sales but a decrease in earnings compared with fiscal 2016.
For the quarter, the loss from continuing operations was $32.7 million, or 28 cents per diluted share, on net sales of $1.3 billion compared with a loss from continuing operations of $2.1 million, or 2 cents per diluted share, on net sales of $1.1 billion for Q4 of fiscal 2016. For fiscal 2017, earnings from continuing operations were $32.6 million, or 27 cents per diluted share, on net sales of $4.6 billion. This compares with earnings from continuing operations of $57.9 million, or 50 cents per diluted share, on net sales of $4.2 billion for fiscal 2016.
Its Americas Recycling segment recorded $2.9 million in adjusted operating profit for Q4 of 2017 compared with
CMC’s Americas Mills segment recorded adjusted operating profit of $29.8 million for Q4 of 2017 compared with $45 million for Q4 of 2016. Despite strong long-steel demand, which resulted in an 8 percent increase in shipments compared with Q4 of 2016, cost pressures squeezed margins for the quarter, CMC says.
Its Americas Fabrication segment recorded an adjusted operating loss of $4.9 million for Q4 of 2017 compared with adjusted operating profit of $9.6 million for Q4 of 2016. A competitive fabrication market contributed to the decline. CMC says newly awarded contracts are at lower selling prices than in 2016 despite higher steel input costs.
CMC’s International Mill segment saw adjusted operating profit of $14.6 million for Q4 of 2017 compared with adjusted operating profit of $18.7 million for Q4 of 2016. Despite the quarterly results being lower than the prior year, CMC says shipped volumes were 16 percent higher.