SA Recycling: Recycling Redefined

Dedicated employees, innovative processes and environmentally sound business practices keep this company ahead of the recycling curve.

Created through a merger of selected assets of Sims Metal Management and Adams Steel, SA Recycling (Orange, CA) was formed six years ago in order for the two companies to join forces and work together to create a world class recycling operation serving the southwestern United States. Adams Steel had been in business in Anaheim, CA since the early 1970s while Sims Metal Management is the largest scrap metal recycling company in the world. The merger allowed Adams Steel鈥檚 management team to expand their reach and to have access to deep water ports. Today, SA Recycling is a full service metal recycler processing scrap steel, iron ore, 听听copper, aluminum, brass and stainless metals with more than 1,200 employees and over 50 facilities throughout the Southwestern U.S, The Company鈥檚 day-to-day operations are managed by brothers George, Mike, and Terry Adams, while Sims contracts the metal export sales.

SA Recycling鈥檚 phone number, 1-800-GOT-SCRAP, is the primary method of both residences and businesses contacting the company for scrap and metal pickup. Most of the company鈥檚 locations also allow for the public to come in and drop off metal as well, including contractors, demolition companies and recycling dealers. Says David Thornburg, SA Recycling鈥檚 Director of Public Affairs, 鈥淚t鈥檚 a good avenue that gives unwanted metal a new life. The best thing about metal is that it can be melted over and over again and it doesn鈥檛 degrade, rather than plastic which can only be reused several times.鈥�

Becoming More Efficient

Thornburg points out that the downturn in economy has affected the recycling industry in many ways. Not only have the prices for scrap metal gone down almost 50 percent, but the cost of doing business has also gone up. Because of the slowdown, people have bought less cars and appliances, built less houses, or even put remodeling on hold, resulting in a decrease in metal recycling. In order to face this head-on, SA Recycling has worked hard to re-evaluate their costs, streamline their process and revise ways they do business. 鈥淲e have certainly streamlined a lot of our processes and become more efficient. One direction we have entered into this last spring is exporting iron ore and so far it has certainly been a promising opportunity for the company. We have two facilities鈥攐ne at the Port of Los Angeles, where we export scrap metal and one at the Port of Long Beach where we export the iron ore in addition to scrap metal. Some of the same customers that we ship scrap metal to, we can also now ship iron ore. In addition, since Long Beach has the deepest water of all North American ports, we are able to bring in heavier capacity ships and larger size vessels into the port in order to be more competitive in the world market,鈥� says Thornburg.

With all these changes, SA Recycling remains committed to safety鈥攖he most important goal of the company. 鈥淏ecause it can be a very dangerous industry, no one cuts corners. There is a lot of heavy equipment and if you are not doing things correctly just like in other heavy-duty industries, there can be injuries. So our safety programs are so important and entrenched in us,鈥� Thornburg stresses. This includes not walking out into the yard unless you have your PPE and always making eye contact with any equipment operator that may be working in the area. 鈥淪afety is the number one priority in the company and management wants to make sure the employees go home to their families every night.鈥�

Environmental safety is also a very important concern to SA Recycling. The company has an incredible environmental team, including someone who used to work for a government agency so they know the ins and outs of relevant regulations, and several who have devoted their entire lives to environmental studies. In addition, when it comes to water treatment in the ports, SA Recycling owns tanks that can hold 1 million gallons at each facility and if any water needs to be discharged it is not until it is extremely pure. This also includes rainwater and stormwater so the company can make sure any water discharged is not harming the environment.

Staff is constantly trained in both safety and environmental issues. Safety officers are on hand to make sure that employees get every shred of information they need, including our newer export iron ore handling and its regulations and company policies. 鈥淲e make sure that everyone is trained because it just takes one person to do something incorrectly that could really change the life of someone else,鈥� says Thornburg.

Overcoming Challenges

Thornburg stresses that one of SA Recycling鈥檚 major challenges is unfair competition from rogue unpermitted companies. While brothers, George, Terry and Mike believe in doing the right things to protect our environment, there are other companies who may not do the same. It is hard for a company like SA who obeys all of the laws to compete with the illegal practices of other rogue scrap companies. However, the company prides itself on having the best available technology for our shredders, fitting them with regenerative thermal oxidizers (RTO). RTOs are used in manufacturing to remove VOCs out of the air. He says, 鈥渨e strive to implement the latest technology. So we go above and beyond our requirements. It鈥檚 a challenge because there are others who don鈥檛 have the standards and don鈥檛 follow the rules.鈥�

SA Recycling also works very closely with law enforcement regarding stolen material. If anyone comes into one of the company鈥檚 facilities with material that is suspected stolen, the transaction is continued at the front of the shop while the police are called in the back. A retired law enforcement officer is on staff to also ensure everyone is following the regulations and doing everything we can to combat theft, including identifying the businesses around them that are breaking the rules. 鈥淚鈥檓 so proud to be working for a company that cares not only about the bottom line but about doing the right thing,鈥� says Thornburg.

Another challenge is making sure that people follow the rules within recycling. Although recycling is a wonderful thing for the environment, it has to be done correctly in order to be effective. SA Recycling provides educational materials to the community, sharing about recycling and what to do. 鈥淭he more education we can give to听 kids, the more they will learn about recycling鈥攚hat it means to the environment and keeping it out of landfills,鈥� says Thornburg.

Thinking Outside of the Box

Thornburg points out that SA Recycling is most proud of their dedicated employees who work tirelessly every day to make the company successful. The company鈥檚 workforce works together as a team to make sure operations run smoothly, often working nights, weekends and holidays to complete tasks. One-third of SA Recycling鈥檚 workforce in the port facilities has been working with the company for 35 years. Thornburg points out there is one man (Pancho) who has just celebrated his 45th year with the company. He has worked his way up from a entry-level job to now being in charge of the shredders and 25 employees who all look up to him. 鈥淗e is positive every day and loves his job spreading his happiness to others. He comes in at five in the morning works all day; he is incredible,鈥� says Thornburg.

He also believes that the company鈥檚 ability to think outside the box by partnering with the ports and exporting iron ore and has been a great achievement. Although it took a lot of time and effort in the beginning to get things into place, it is now proving to be a success for the company. He stresses that the brothers鈥� mindset is that they are not going to leave the company assets idle; they are going to do something about it actively and get it turned back around.

When it comes to community, SA Recycling makes sure that it is right out there front and center. Not only do they provide receptacles to public events, but they also participate in school recycling programs where possible, which brings huge benefits to the school because they can bring in thousands of dollars to put towards field trips and other funding. And the company does not stop there, they also volunteer, donate or sit on the board of the local chambers, Port of LA High School, Boys and Girls club, YMCAs, Beacon House (a rehab center), Sullivan House (brings food to needy families). 鈥淲e partner with the schools and take the kids field trips to our facility. They can even see a car get crushed in three seconds with pieces coming out for the shredder the size of your fist. We love to give back so much for the community,鈥� says Thornburg (see Community Organizations sidebar).

Looking Ahead

As for the future, SA Recycling will continue to look for ways to be more productive while continuing to be environmentally conscious and working with the appropriate agencies. They are also looking at LED lighting, fuel cells, electric trucks and all sorts of technology to become even greener and reducing the nation鈥檚 dependence on energy.

SA Recycling will also maintain its focus in five primary areas. First and foremost, the company will continue its focus to reduce employee injuries and to become the safest recycling company in the U.S.听 Secondly, SA will continue its growth focus and seek acquisitions that are a strategic fit to the company鈥檚 growth. Third, SA will focus on additional cost reductions by broadening its benchmarking into all areas of its business.听 Fourth, the company feels that it is essential to develop its managers for the future through well-designed training of its employees. Finally, SA will continue to broaden its business through diversification in seeking participation into product areas that have not been part of the business up until now.

Thornburg says, SA Recycling successes are due to the will of so many talented people that have devoted a good portion of their lives to making sure it succeeds. The tenacity of the owners to successfully compete in an industry that has more competition than most is a testament to their knowledge of this business. The DNA of the company, with the ideology of George Adams Senior and his sons, makes our success unavoidable.鈥�

For more information, call (800) GOT-SCRAP or visit www.sarecycling.

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