CMI takes full control of Pennsylvania aluminum shredder JV to scale high-volume recycling hub

Combined Metal Industries

CMI takes full control of Pennsylvania aluminum shredder JV after signing a buyout agreement. Combined Metal Industries will purchase the remaining 50% stake in CMI Upstate. The partner is Upstate Shredding–Weitsman Recycling based in Owego. Therefore, CMI takes full control of Pennsylvania aluminum shredder JV to accelerate investment and execution.

The acquisition centers on a facility in New Castle. CMI says full control improves decision speed for capital upgrades and operational changes. Meanwhile, the site offers strong supplier access and rail and truck logistics. As a result, the project aligns with rising demand for recycled aluminum feedstock.

New Castle conversion expands aluminum scrap processing capacity

The partners formed the joint venture in February 2025. They aimed to convert the New Castle site from ferrous to aluminum scrap processing. The companies renovated the plant by upgrading the shredder and downstream systems. They also installed a pre-shredder and added new handling equipment.

Upstate Shredding said the site no longer fit its geographic footprint. Owner Adam Weitsman cited footprint alignment as the driver. However, the investments already made created a stronger platform for a new owner. Therefore, CMI takes full control of Pennsylvania aluminum shredder JV to capture the upside from the completed retrofit work.

Phased upgrades target throughput and environmental systems through 2027

CMI plans staged upgrades over the next 12 to 24 months. The company will expand throughput and accelerate material recovery. It will also add environmental systems to support compliant high-volume operations. Meanwhile, aluminum scrap markets reward consistent spec and recovery yields. As a result, equipment modernization can lift margins and customer retention.

The transaction is expected to close on 1 December. It remains subject to standard closing conditions and final consents. Therefore, operators and suppliers will watch integration timelines and capex sequencing closely.

The Metalnomist Commentary

Aluminum recycling hubs win when they combine logistics access with high recovery rates. Meanwhile, pre-shredding and downstream upgrades can lift yield and reduce residue. Therefore, CMI’s execution discipline over the next 24 months will decide the hub’s market impact.