CMI takes full control of Penn. Al shredder JV to build a high-volume aluminium recycling hub

Combined Metal Industries (CMI)

CMI takes full control of Penn. Al shredder JV by buying the remaining 50% stake in CMI Upstate. Combined Metal Industries will own the New Castle, Pennsylvania operation outright after its buyout from Upstate Shredding–Weitsman Recycling. CMI takes full control of Penn. Al shredder JV to accelerate capital spending and improve operating leverage. Therefore, the deal signals confidence in growing aluminium scrap flows and tighter demand for clean secondary units.

Full control also strengthens execution speed. The New Castle site offers supplier coverage plus rail and truck access. Meanwhile, logistics performance matters when scrap spreads across many small generators. As a result, site positioning can determine margins as much as shredder horsepower.

Ownership change follows a 2025 pivot from ferrous to aluminium processing

The partners formed the joint venture in February 2025 to convert the New Castle facility from ferrous into aluminium scrap processing. The teams then upgraded the shredder and downstream system. Meanwhile, they installed a pre-shredder and added new handling equipment. Therefore, the site already carries meaningful sunk investment that CMI can now scale.

Upstate Shredding described the asset as outside its geographical footprint. Adam Weitsman cited footprint fit as a key factor. However, the decision also reflects portfolio focus as regional recyclers optimise networks. As a result, CMI takes full control of Penn. Al shredder JV at a moment when specialisation is increasing across North American scrap.

12–24 month upgrade plan targets throughput, recovery, and compliance

CMI will roll out phased upgrades over the next 12–24 months. The plan targets higher throughput and faster material recovery. Meanwhile, added environmental systems can reduce dust and improve compliance readiness. Therefore, the facility aims to operate as a high-volume aluminium recycling hub rather than a regional swing asset.

The closing timeline is also defined. The transaction should close on 1 December, subject to standard conditions and final consents. However, integration begins before closing through staffing, maintenance planning, and capex sequencing. As a result, CMI takes full control of Penn. Al shredder JV with a clear operational roadmap.

The Metalnomist Commentary

Control matters most when a recycler needs to standardise upgrades and quality systems quickly. Meanwhile, aluminium scrap is becoming more strategic as tariffs and decarbonisation tighten secondary supply. Therefore, this buyout looks like a positioning move for higher-grade, higher-demand scrap units.