06 AUGUST 2024AlCircle.com

Metal Source expands footprint with the acquisition of Imperial Aluminum in Alabama

3 min read

Gebhart Holdings, Metal Source's parent company, has announced the acquisition of Imperial Aluminum's assets in Scottsboro, Alabama. This strategic purchase marks Metal Source's first location outside Indiana, enhancing its capabilities and market reach. However, the financial details of the transaction have not been disclosed.

The newly acquired facility, which will be rebranded as Metal Source, spans over 40 acres and employs approximately 80 full-time staff. With an impressive recycling capacity exceeding 100 million pounds annually, the site will produce a variety of aluminium alloys, zinc alloys, and aluminium deox cones.

Colin Denihan, Metal Source's Chief Commercial Officer, emphasised the strategic significance of the Alabama location in meeting the growing demand for recycled-content aluminium in the Southeast.

This expansion supports our growth strategy and strengthens our position as a key supplier to automotive original equipment manufacturers and Tier 1 aluminium casters.

The facility's increased capacity aligns with the rising demand for aluminium with a lower carbon footprint.

AL Circle's industry-focused report, “World Recycled Aluminium Market Analysis—Industry Forecast to 2030,” revealed that in 2022, recycled aluminium usage in North America was estimated to be around 3.5 million tonnes, accounting for around 12.92 per cent of total global usage.

Recycled aluminium forecast With a robust CAGR of 2.71 per cent from 2022 to 2030, the estimates suggest that it will continue to rise in the years to come. By 2024, when overall output is predicted to reach 3.7 million tonnes, the industry is anticipated to increase significantly, signifying notable progress. Projected values show a consistent increase trend: 3.8, 3.9, and 4.3 million tonnes for 2025, 2026, and 2030, respectively.

Recycled aluminium forecast

Previously operated by the Imperial Group out of Chicago, Imperial Aluminum specialises in manufacturing aluminium alloys and providing tolling services for aluminium scrap. The company serves a diverse clientele, including manufacturers, electrical utilities, and metal fabricators.

The acquisition includes the Alabama facility but excludes Imperial Aluminum's Minerva, Ohio site. Notably, the Ohio facility, located about 75 miles from Cleveland, experienced a fire and explosion last year, causing significant damage and injuring a worker.

This latest acquisition follows Metal Source's 2023 purchase of Bedford Recycling, which operates in Bedford and Mitchell, Indiana. It includes an auto shredder, chopping line, and other ferrous and nonferrous processing capabilities. In 2022, Metal Source acquired Huntington Aluminum in Huntington, Indiana, further bolstering its recycling and processing operations. These acquisitions are part of Metal Source's strategic growth plan.

Ben Gebhart, CEO of Gebhart Holdings, said, “I’m extremely excited to announce this purchase. This will allow our company to better supply our customers in the South and expand our customer base and product capabilities overall.”

With this strategic expansion, Metal Source is poised to enhance its service offerings and reinforce its commitment to sustainable practices in the aluminium industry.

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