A list of the nation's largest ferrous scrap processors paints an interesting portrait. They are headquartered throughout the U.S.--on all coasts and throughout the interior of the country. Many large scrap companies have an unmistakable leadership position in the regional markets they serve, while the largest ones are striving to achieve that position in several regions at once.

But while there are common denominators to the 20 largest ferrous scrap companies in the U.S., there are also differences. Some are publicly traded, while many are privately or closely held. One of the largest is owned by an overseas holding company. Nearly all of them can trace their roots back to humble small business origins, while a few are the result of last decade's consolidation movement.

The statistical snapshots we have assembled about these companies can be seen on the chart on pages 40 and 42. What we are also doing on the following pages is presenting thumbnail sketches of who these companies are and how they got to be among the biggest (and presumably best) in their industry.

A list like this can provoke debate. Unfortunately, a reluctance by some companies to provide information may have led to their omission from the list. We suspect this is just fine with the companies in question.

However, we hope that some of these companies will reconsider. Listing the largest, most active companies is a way to gain recognition for what a company and its employees have accomplished. It takes hard work by a lot of people to procure, process and ship out ferrous scrap.
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Business owners who have grown or nurtured a business so that it has become among the leaders in its industry should be justifiably proud. We hope that our recognition of those companies in the ferrous scrap segment that have accomplished this feat will be seen for what it is: A way to honor leadership in an industry that can provide challenges with each price adjustment and each twist and turn of the market.

1. METAL MANAGEMENT INC.

Metal Management Inc., Chicago, was created during the consolidation wave of the 1990s. Today, the company is still publicly held, but is under the leadership of scrap industry veteran Albert Cozzi.

The Chicago area operations of Cozzi Iron & Metal make up a key part of Metal Management's current assets, but during its formation in 1997 and 1998, the company also acquired several regional companies, including: several smaller operators in the Chicago area; Perlco in Memphis, Tenn., and Salt River Recycling in Phoenix, which Cozzi had previously acquired; Naporano Iron & Metal Co., Newark, NJ.; Michael Schiavone & Sons, North Haven, Conn.; Proler Southwest, Houston; Newell Recycling of Denver Inc.; Emco Recycling Corp., Phoenix; Ellis Metals Inc., Tucson, Ariz.; The Isaac Group, Toledo, Ohio; M. Kimmerling & Sons, Birmingham, Ala.; Charles Bluestone Co., Elizabeth, Pa.; Nicroloy Co., Pittsburgh; and Aerospace Metals, Hartford, Conn.

Metal Management struggled through bankruptcy proceedings in 2001, and is still striving to achieve profitability in the current scrap markets.

The company's 1,600+ employees buy, process and sell more than $750 million worth of metals annually, working from locations in 14 different states. In addition to its ferrous operations, the company also trades heavily in nonferrous metals.

The publicly released results of Metal Management reflect the difficulties faced by scrap recyclers in 2001. For its quarter ending Sept. 30, 2001, Metal Management's revenues were down more than 20% compared to the same period last year, reflecting a much slower flow of materials through its yards.

The good news, says Cozzi, is that the company has reigned in its operating and administrative expenses, and a significant improvement in financial results can be anticipated when market conditions improve.

2. OMNISOURCE CORP.

The nation's second largest ferrous scrap company is a dominant player in the manufacturing region located at the western end of Lake Erie.

With its headquarters in Fort Wayne, Ind., and its roots lying there and in nearby Toledo, Ohio, OmniSource Corp. was born with the combination of two family businesses located in each of those cities.

In Fort Wayne, the Rifkin family built Superior Iron & Metal into a formidable regional company, while the Tuschman family did the same with Kripke-Tuschman Industries in Toledo. When the two companies merged in the 1980s, the Rifkins assumed overall operating control (though the Tuschmans remain involved in Toledo), and the name OmniSource was chosen for the company.

Although OmniSource grew significantly during the 1990s, it did not go on an acquisition spree as much as it acquired additional facilities in or adjacent to the regional market with which it was familiar. The company branched into Michigan in addition to acquiring more locations in Indiana and Ohio. It also began important service contracts at major automotive plants that provided it with access to steady supplies of scrap.