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USA Recycling Industries, Inc. (USRI) Positioned For Further Growth

|Includes: USA Recycling Industries, Inc. (USRI)

USA Recycling Industries, founded in 2000, operates through several company-owned specialty recycling centers as an intermediary service provider within the automotive service center industry. In that configuration, it delivers specialty recycling advantages to the more than 5,000 auto service centers in its network - some of them major players in the retail auto parts trade.

Among other things, these liaisons position USA Recycling, through its subsidiary Scrap USA, to capture significant revenue from the $75-billion global scrap metals market. Given that scrap metal is a direct input to steel production, providing up to 50 percent of the raw material needed to make steel, it only makes sense that the almost 130 million long tons of global scrap metal production contribute to a reduction in energy consumption when compared to mining iron ore and heating/separating it in a foundry. This, as a result, makes scrap metal recycling even more environmentally friendly than some people realize.

USRI's operations - through diversification via its multiple subsidiaries as well as partnerships - are able to capture a generous share of the scrap metal market. This allows the company to branch out into other recyclable waste streams, or to create the sorts of franchising opportunities and revenue-sharing agreements like the one it recently arranged with Recycling Franchisors, Inc.

Other initiatives aimed at placing USRI on an equal footing equal with other major U.S. scrap recyclers include launching a new and highly informative website, and a change of address for the company's executive offices. Those efforts, placed alongside USRI's 2011 acquisition of Scrap USA (which had been successfully operating in the automotive service center industry since 2007), and a name change to better reflect the company's operations and business model, place USRI in an enviable position within the U.S. recycling industry.

USA Recycling Industries' reputation, for providing only top-drawer waste collection and removal, and insuring that said waste will not impact any operating U.S. landfills, is yet another way in which the company stands head and shoulders above run-of-the-mill recyclers who have given the industry such a bad name. For USRI, its commitment to repurpose and sell all recyclable materials to end users through its sales offices in North America, India and the United Arab Emirates, represents a very "green" effort to capitalize on a "cradle-to-cradle" life-cycle assessment.

USA Recycling, operating as a collection and recycling firm, handles not only scrap metal but (automotive) oil filters, used motor oil and other vehicle lubricants, used tires, used batteries, and other automotive waste-related disposal and repurposing activities. It also provides 48-hour turnarounds, certified weight tickets on surrendered items, warehouse scrap processing which follows all applicable laws and regulations, and provides these services free to businesses needing one container changeout each month. In addition, USRI commonly pays within 30 days, providing the needed documentation with each check.

Operating in 40 U.S. states, with export trading operations in North America, India, and the United Arab Emirates, USRI is part of a growing national movement aimed at resource reclamation and recycling to preserve and extend the life of such natural resources as iron ore, copper, aluminum, lead, zinc, and stainless steel.

According to a 2011 U.S. Environmental Protection Agency (EPA) report, this scrap metal resource protection leads to a 75-percent savings in energy, a 90-percent savings in raw materials needed, an 86-percent reduction in air pollution, a 40-percent reduction in water use and a 76-percent reduction in water pollution, as well as a 97-percent reduction in mining wastes, many of which - piled around the countryside - lead to groundwater pollution and a lack of potable water in mining regions. In addition, the EPA notes, every tonne of new steel made from scrap saves 2,458 pounds of iron ore, 1,377 pounds of coal and more than 116 pounds of limestone. And, while none of these is a rare mineral, their extraction almost always leads to despoliation of the ecosphere.

Equally as important, in terms of the ecosphere, are the 300 million scrap tires abandoned in the U.S. each year. Formerly these tires, when worn beyond the tread, were not good for much beyond garden rounds and tire swings (or as garage-door bumpers in a pinch), and were thrown alongside the highway, discarded in abandoned lots, or dumped in lakes. Thanks to enterprises like USRI, which has made a commitment to reduce, reuse, and recycle, in 2010 this nation recycled one billion pounds of crumb rubber generated from the approximately 300 million tires discarded, and used much of this in rubberized asphalt, which made American roads safer, smoother, and quieter; rubberized asphalt has been shown to reduce road noise by up to 4 decibels.

With its commitment to maximize shareholder value while simultaneously providing a waste collection stream that spares landfills and ensures that today's automotive materials - from metal to tires to batteries to lubricants - will not become tomorrow's ecological nightmares, USRI stands poised to deliver value across the entire spectrum of American life.

To learn more about the company, visit

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