New Castle News

All About You ...

December 17, 2012

Your Town: Local officials welcome new scrap recycler

NEW CASTLE — The out-of-town buyer of Ferrotech has high hopes for the business that his firm bought at auction.

New York-based Upstate Shredding on Thursday purchased the former Ferrotech Corp. land and buildings at a bankruptcy auction conducted on the property, the former Pennsylvania Engineering Corp.

Upstate Shredding owner Adam Weitsman said $2.2 million was bid. Weitsman was one of five parties interested in the local scrap metal processing facility. Others included adjoining property owner Ellwood Quality Steel.

Ferrotech closed earlier this year due to financial and legal issues with its parent company’s lending institution. Both Ferromet of Medina, Ohio, and Ferrotech filed for Chapter 11 protection in federal bankruptcy court.

Weitsman said after the auction that he believes Ferrotech has potential.

“We expect to make this a thriving business, expanding the business 10- to 15-fold,” he said.

Purchasing the buildings and grounds, Weitsman anticipates investing $5 million to $6 million locally, tearing down the existing buildings, building a 3,000-square-foot office building and a 20,000- to 30-000-square-foot warehouse.

He also anticipates paving the area to reduce dust and dirt, replacing old equipment with new cranes and equipment, complying state and federal environmental standards and hiring 30 employees. He foresees those all will be local residents.

He said he expects to take possession of the property early in February and begin immediately to demolish the dilapidated existing buildings at the site.

“I was surprised, pleasantly surprised,” New Castle Mayor Anthony Mastrangelo said yesterday.

Although financially strapped, he said, the city has funds earmarked for economic development available to entice new businesses to come to the community.

“But we weren’t asked,” he said. “No one called us about this project to ask for any help from us.”

Mastrangelo said the business “is good for the community. We welcome them.”

Lawrence County Commissioner Steve Craig and Economic Development Corp. executive director Linda Nitch said Weitsman had not contacted local development agencies prior to acquiring the recycling facility.

Nitch said she is anxious to contact Weitsman to offer her agency’s assistance.

“He has said his is a profitable company and he hasn’t asked for any assistance, but we may be able to help him with clean-up efforts,” she said, adding, “If he’s creating new jobs, he is eligible for tax credits.”

Weitsman said he considered the local scrap processor for the past three or four months.

“I came up for the bankruptcy auction figuring that it would sell for $2 million to $2.5 million,” he said. “Our bid for $2.2 million is no bargain, but it is within the range we had anticipated.”

Upstate Shredding is a large, privately-held scrap metal processor. The firm and its sister company, Ben Weitsman & Son Inc., operate in 13 locations in New York and Pennsylvania, Weitsman said. He noted that the company was founded in 1938 by his grandfather.

The company, headquartered in Owego, N.Y., deals with scrap metals from old appliances to insulated wire, vehicles, machine shop trimmings, copper, brass, aluminum, stainless steel, zinc and magnesium. Products are exported around the United States and around the world.

(Email: nlowry@ncnewsonline.com)

1
Text Only | Photo Reprints
All About You ...
  • Ramsey.jpg Dave Says: Problems with no credit score?

    “Dave Says” is a weekly column featuring financial advice from nationally syndicated radio host Dave Ramsey. His column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey’s radio progam, “The Dave Ramsey Show.”
     

    April 18, 2014 1 Photo

  • Brothers.jpg Lori Brothers: Play with names — not with your food

    Do you remember being told, “don’t play with your food” when you were a child?  Or maybe you’ve said this to your own children or grandchildren. I’ve heard stories about kids slipping food under the table to the dog or stuffing Brussels sprouts into their pockets to get out of the pain of eating them.

    April 17, 2014 1 Photo

  • stright.jpg Sarah Stright-Hartley: A T-shirt dress can be a three for all

    I love finding pieces that can be worn for just about every portion of my life.  From daytime, to work, and then on a date with my husband, I like pieces that can go the distance.

    April 16, 2014 2 Photos

  • ivy_bday.jpg Kali Davies-Anderson: Happy birthday, Miss Ivy!

    This week I would like to take time out of my usual ramblings to wish my second born daughter, Ivy, a very, very happy first birthday!

    April 15, 2014 2 Photos

  • Olszak.jpg Heartbleed raises the stakes on Internet security

    My column last week dealt with Internet and related scams, along with steps people can take to protect themselves. Today’s column could be termed Part 2 of that topic, albeit from a different angle.

    April 14, 2014 1 Photo

  • Hudson.jpg Lugene Hudson: Celebrate Easter like Helen Martin

    What’s cookin? That’s one of our favorite questions at Culinary Conversation. We love when readers share some of their favorites. This week, Helen Martin of New Castle stepped up to the plate to answer that question regarding Easter dinners.

    April 12, 2014 1 Photo

  • Ramsey.jpg Dave Ramsey: You can’t borrow way out of debt

    “Dave Says” is a weekly column featuring financial advice from nationally syndicated radio host Dave Ramsey. His column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey’s radio progam, “The Dave Ramsey Show.”
     

    April 11, 2014 1 Photo

  • Brothers.jpg Lori Brothers: Wellness a growing trend among those over 50

    The power of choice that the explosion of Internet information has generated is moving us as a culture in a direction to examine who we are and what we really value.

    April 10, 2014 1 Photo

  • stright.jpg Sarah Stright-Hartley: Some perfect fits for heading back to work

    I'm heading back to work soon and I've really been thinking about my work wardrobe — especially because I'm hoping most of it still fits my post-baby body.

    April 9, 2014 2 Photos

  • Kali.jpg Kali Davies-Anderson: It’s one of those days — and sometimes that’s OK

    Today, I am distracted. I had a long weekend. I am kind of in a bad mood. My daughter is playing with a toy with multiple musical buttons and keeps interrupting the playing song to start it over again.

    April 8, 2014 1 Photo

House Ads
Poll

Are you concerned enough about the Heartbleed bug on the Internet to change all of your social media and website passwords?

Yes. It’s always a good idea to change passwords regularly anyway. I just have so many, I’m not sure where to start.
No. From what I’ve read, companies are still trying to figure out how to fix the flaw. The bad guys will just have access to my NEW passwords, too.
Not sure, but I blame Al Gore. He invented the Internet, right? How’s he going to get us out of this mess?
     View Results