Jan 3 2011
The Timken Company (NYSE: TKR) today announced that its wholly owned subsidiary, TSB Metal Recycling LLC, has purchased substantially all of the assets of City Scrap and Salvage Co. in Akron, Ohio. City Scrap, which employs 30 people, has a longstanding relationship with Timken, supplying the company for more than 15 years as a local source of the ferrous scrap needed for its steelmaking operations.
The acquisition is consistent with Timken's history to maintain reliable resources for its businesses. In fact, the founding of Timken's steel business in 1917 traces back to the company's need for a dependable steel supply for its bearing business.
"For our plants, steel scrap sources are essential as we continue to expand our business," said William P. Bryan, director of supply chain and supply chain economics for Timken's steel group. "Acquiring City Scrap further ensures we have the resources needed to serve our customers now and in the future."
The acquisition also reinforces the company's significant recycling activities and ongoing commitment to the environment. "Since the beginning, we have used scrap to produce steel," said Bryan. "In today's operation, nearly 100 percent of the content of our steel comes from recycled material."
Bryan noted that in 2010, Timken converted more than 1.5 million tons of scrap metal - the equivalent of more than 750,000 scrap automobiles - into new steel bars and tubes.
The City Scrap acquisition will streamline the supply of scrap to Timken's steel operations, improving efficiency and increasing supply chain reliability. While the new venture will simplify Timken's ability to effectively recycle the industrial scrap generated from its own bearing and steel operations, City Scrap also will continue to buy scrap from dealers and individuals at its West Wilbeth Road location in Akron. City Scrap had revenues of approximately $17 million in 2010.