DMS Metals invested in an automatic shredder with a downstream system for non-ferrous metals to increase self-sufficiency.

It’s been seven years since the Andrew and Paul Gallo brothers took over the leadership of DMS Metals Ltd. (formerly Don Mills Steel and Metal (1974) Ltd.), this is their family’s metal recycling plant in Stouffville, Ontario, but the brothers have been looking for Ways to take the business to the next level.

Andrew worked in law for two years before assuming leadership positions at DMS Metals, and Paul began his career in the industry after obtaining a bachelor's degree from the University of Western Ontario. Their brother Marc also plans to join the company.

"Our plan has always been to continue the legacy established by our father and take it to a new level," Andrew said. "We know it is difficult for him to sell this company. I have been able to bring some skills from the legal profession, and Paul always has a knack for doing business. Since we started, we have built some good momentum, and our plan is Keep this momentum."

DMS Metals Ltd. operates a 25-acre waste recycling facility in northern Toronto. The company has 35 employees and provides ferrous and non-ferrous metal recycling services and brokerage services.

"When we switched to full-time jobs for the first time, our father would tell us that if we want to really grow our business, we need to invest in a car shredder-we think he is crazy because such a machine is too It's huge. But as time went on, as we navigated the highly competitive market in Ontario, we realized that he was right," Andrew said.

Paul confirmed that it is definitely daunting to consider entering the car shredder business and making this kind of investment. But by 2018, both brothers felt they were ready to take this step for their business.

The brothers started buying automatic paper shredders in April 2018. As of January 2019, DMS Metals purchased an M6090 paper shredder, provided by Winter in Buffalo, New York, and equipped with a non-ferrous metal downstream system. The equipment was up and running in January 2020 and has been in operation for about a year.

Paul said they decided to invest in automatic paper shredders for many reasons, but the main reason was to reduce their dependence on the large paper shredders running around.

"We really want to be self-sufficient in processing materials without having to rely on the behemoths in our region," he said. "We are now making ourselves more competitive in all the materials that come in front of our door."

Wendt Corp. installed the M6090 automatic shredder and non-ferrous metal downstream system in cooperation with DMS in the summer and autumn of 2019.

Andrew said the installation took about six months. Although outdoor equipment installations in Ontario sometimes encounter weather problems in autumn and winter, he said that DMS was fortunate to have a mild winter in 2019.

"Of course we are worried about how bad weather will affect the installation, but we ended up having a good winter, so we are very lucky in this regard," he said.

With the addition of Wendt M6090 paper shredder and non-ferrous metal downstream system, DMS added 10 new employees. Paul said that the automatic shredder reached its goal of processing 8,000 to 10,000 tons per month in the second month of operation. He said Winter helped the machine speed up to reach the goal.

The brothers said that the new downstream system for non-ferrous metals also helped them improve their processing capabilities.

"The actual shredder is only half the equation," Paul said. "If we are not equipped with non-ferrous metal downstream systems, we will have to rely on other processors as before. We have increased the number of products that can be sold directly to consumers, which puts us in a better position."

DMS decided not to directly connect the paper shredder and the non-ferrous metal downstream system. Instead, the shredded material falls to the ground, and the mobile equipment operator picks up the non-ferrous metal material and transports it to the offline separation system. Andrew said that allowing two machines to run independently can achieve more strategic processing and better versatility.

The Gallo brothers also obtained maintenance skills from Wendt Corp. and some of the company's customers, and developed a plan that best suits their facilities. Before the installation, Paul said that they used Wendt M6090 to visit five other scrap yards to understand how the machine works.

"That community is very helpful," he said. "We are able to formulate a maintenance plan around the knowledge we have learned and what is most suitable for our company. We understand that although we all try to accomplish the same thing through maintenance, everyone ultimately does something different."

"Once we started smashing, we established our own [maintenance] method-for every hour of smashing, we spend approximately 30% of our time on maintenance," Andrew said. He added that most maintenance is preventive in nature.

In January 2020, just before the pandemic began, DMS Metals of Stouffville, Ontario installed an automatic shredder in its operations.

Nick Gallo (middle) founded Don Mills Steel and Metal Ltd. about 46 years ago. His sons Andrew and Paul Gallo (pictured left and right) lead the family business today.

Paul Gallo said that the main reason DMS invested in the purchase of an automatic shredder was to reduce its reliance on large-scale shredders.

Paul (left) and Andrew (right) say that the shredder has helped them improve their competitiveness.

Andrew said that if the DMS ​​ encounters problems with the new equipment, Wendt has been helping for months after the installation.

"Wendt helped throughout the process. Soon after we started to smash, we encountered a small hydraulic problem," he said. "We called Winter at 8:30 in the morning. They sent a technician from Buffalo, New York, and he was there at 11 a.m., and we came back before 1 p.m. and shattered."

Since launching its automatic paper shredder and non-ferrous metal downstream system, DMS has encountered some supply-related challenges caused by the COVID-19 pandemic in the spring.

"A lot of it has been shut down," Paul said. "The supply chain is a mess; many of our customers-factories, foundries-are not running."

Spring 2020 is a difficult time for buying and selling materials, but the company has never stopped work and continues to move materials in its yard. Although it took several months to get back on track, Paul said that by the end of 2020, the momentum of material flow will be as strong as it was before the pandemic began, if not stronger.  

Andrew and Paul said they were also lucky that they were able to install automatic shredders and non-ferrous metal downstream systems before the pandemic began to hit North America. They added that they had seen many advantages of entering the auto-smash game last spring, and pointed out that one big advantage is self-sufficiency.

"Before we had a paper shredder, we had to deal with other local car shredders," Andrew said. "As we start to grow, we find it increasingly difficult to make our tonnage competitive."

In recent years, as the population of Toronto has grown, DMS has also received more consumables (that is, shattered) items.

The brothers have also been committed to the development of DMS's brokerage business. Paul said that having an automatic shredder service provides another product for some of their customers.

Compared with large paper shredders, Paul describes their paper shredding operations as more like boutique operations.

"If needed, we can handle tons of goods, but because we are small, our setup can also run special products and maintain the quality that these types of foundry products need to maintain, whether in ferrous metals or non-ferrous metals. Aspect," he said.

"We are more than just an automatic shredder," Andrew said. "We produce more than six different products-including some specialty products."

In general, the new investment has helped DMS become a more competitive courtyard with more development opportunities.

Andrew said that this investment made him enthusiastic about the future of DMS. "We can handle more tons now," he said. "This allows us to be more active in buying different types of goods. It also opens many doors for foundries and factories, because we have been able to make many different products that were not possible before."

The Triple M subsidiary launched its fifth aluminum alloy plant in November.

Matalco, an aluminum alloy producer that consumes scrap, has started operations at its new plant in Wisconsin Rapids, Wisconsin. This facility is the fifth alloy production plant operated by Matalco, a subsidiary of Triple M Metal in Brampton, Ontario. 

An online article in the Wisconsin Rapids Tribune in late December cited company announcements stating that production at the plant began on November 19, 2020. The start of the facility was postponed due to COVID-19-related restrictions, but the November startup was in line with Matalco's revised timeline. 

A recent online article stated that as of late December, the Rapids plant in Wisconsin had shipped approximately 1,500 tons of products, with an annual production capacity of 120,000 tons of secondary aluminum billets.

In addition to the new plant, Matalco also has scrap billet production plants near Triple M's headquarters in Brampton, Bluffton, Indiana, and Canton and Lordstown, Ohio. The company stated on its website that it produces high-quality 6000 series billets.

Donations will be used to support the Scottish Ceremony Children and Children's Health Hospital.

Goodyear of Akron, Ohio announced that as the title sponsor of the Cotton Bowl, it will continue to support Scottish Rite for Children's and Children's Health hospitals, donating US$20,000, and in the game to pediatric patients and medical staff of these hospitals pay tribute.

The Goodyear Cotton Bowl Classic has been the title sponsor since 2014. As a member of the "New Year's Six", it has hosted a large-scale competition, which is the top bowl game in the semi-final rotation of the college football playoffs.

Goodyear said it will continue to support children’s health and Scottish children’s rituals, as healthcare organizations remain committed to having a positive impact on children’s lives through their patient care.

"We are very grateful to Scottish Rite for Children and Children's Health for their tremendous contribution to their community," said Karen Maroli, Goodyear's Vice President of Marketing. "Now, we are more committed than ever to show our support for these hospitals and the dedicated professionals who have worked tirelessly to help so many families."

In order to continue the Cotton Bowl tradition of visiting hospitals in the COVID-19 environment, Goodyear is making a virtual in-game tribute that contains photos of hospital visits in previous years. Goodyear and Cotton Bowl have also created two custom football helmets-each with its own hospital logo-which will be signed by the head coach and captain of the teams participating in the Goodyear Cotton Bowl Classic this year and delivered after the game hospital.

The 2020 Goodyear Cotton Bowl Classic between the University of Florida and the University of Oklahoma will be held on December 30th.

The New Jersey Scrap Company purchased the facility in Girard, Ohio from Chiho Environmental, the parent company of Liberty Iron & Metal.

Metalico Inc., headquartered in Cranford, New Jersey, has purchased an automated paper shredding airport in northeastern Ohio from the Liberty Iron & Metal subsidiary of the Hong Kong-based Chiho Environmental Group.

A review of transactions prepared by Chiho for the Hong Kong Exchanges and Clearing Co., Ltd. and The Stock Exchange of Hong Kong Co., Ltd. showed that the transaction was completed on December 25, 2020 at a transaction price of USD 13.2 million. Chiho shares were listed on the Hong Kong Stock Exchange, triggering disclosure.

The review part pointed out that “the seller is Liberty Iron & Metal Inc., an indirect wholly-owned subsidiary of [Chiho]. The buyers are Chloe Girard LLC (Metalico Girard) and Metalico Youngstown Inc. (Metalico Youngstown). The buyer is in Shanghai Part of Yechao Metal Recycling (China) Co., Ltd., listed on the stock exchange, is also one of the world's largest secondary aluminum producers."

The yard purchased by Girard near Youngstown, Ohio was partly acquired by the German-based Scholz Group in 2007, and was part of Liberty Iron & Metal owned by the Diamond family until it was fully acquired by Scholz in 2016. The Scholz Group itself was acquired by Chiho in 2016.

Chiho’s December 2020 transaction summary stated that “Proceeds from the sale will be mainly used to repay existing local bilateral bank loans secured by [disposal] assets, thereby reducing loan and financial expenses.” Chiho added in its review Said, "The company conducted an auction sale process for the disposal of assets, and the buyer provided the most favorable price."

The review indicates that additional Chiho divestments may be in progress. "The company has reviewed its geographic footprint and decided to refocus its Southwest [US] business strategically and divest its disposed assets. The disposed assets include the company's paper shredder facility in Ohio [and] Pennsylvania. Certain property, equipment and inventory of the company. After the divestment, the company will no longer own and operate the Girard shredder facility."

In addition to the Girard Shredder Airport for sale, Liberty's website also lists a shredder airport in Erie, Pennsylvania, and another factory in Salon, Pennsylvania as remaining assets in the eastern United States. In the southwest, Liberty Iron & Metal has a paper shredding airport in Phoenix and Chihuahua, Mexico.

Global lending institutions said the government has formulated "strong policy responses" to avoid more serious economic losses.

The International Monetary Fund's (IMF) Executive Committee's assessment of the Brazilian government's response to COVID-19 and economic destructive restrictions noted that the country has adopted a "strong policy response" that has helped avoid a "greater economic recession."

In a document in early December, the Washington-based International Monetary Fund stated that the Brazilian government’s response to the economic consequences of COVID-19 in 2020 was “swift and substantial.” The IMF added, “The authorities implemented emergency cash transfer and job retention programs, increased medical expenditures, provided financial support to local governments, and provided government-supported credit lines to small businesses. Overall, fiscal and quasi-fiscal measures accounted for GDP Increase the basic deficit from 1% in 2019 to around 12% of GDP in 2020."

The Brazilian people are suffering from COVID-19. As of December 29, the COVID-19 dashboard of Johns Hopkins University in Brazil showed that more than 7.5 million cases were detected, resulting in more than 190,000 deaths.

The IMF pointed out that the economic consequences of 2020 will also be severe. The organization wrote: “The economy is expected to shrink by 5.8% in 2020 and then partially recover to 2.8% [growth] in 2021.” “The lingering effects of the health crisis and the expected withdrawal of financial support will curb consumption. And investment will be hampered by idle capacity and high uncertainty."

The assessment of the Executive Board of the International Monetary Fund concluded that “good policies have enabled the Brazilian economy to take off in 2020, but the pandemic has had a serious impact on the economy.”

The board team stated that the 2021 policy “should focus on limiting the scarring effects of the pandemic, ensuring the sustainability of medium-term debt, and advancing reforms to promote a strong and inclusive recovery.”

Recyclers are interested in that the document summarizing the assessment added, “Some directors also emphasized the importance of policies for green recovery.”

Most of the content in the 70-page staff report on IMF assessments focused on banking and fiscal policies, and did not conduct in-depth research on metal-intensive infrastructure spending as a policy measure. Such measures in some Latin American countries seem to have contributed to a rebound in steel production in the region.

A note on infrastructure spending mentioned that “the International Monetary Fund’s Technical Assistance (PIMA) delegation found that the most significant weaknesses in public investment are the strategic priorities of expenditures and project selection and evaluation.”

The International Monetary Fund added, “Based on these findings, the staff urged the authorities to develop a high-quality portfolio of priority projects and establish a new, more rigorous process for project selection, evaluation and approval.”