Schnitzer Steel Canada Inc

Schnitzer is a global leader in the metals recycling industry. Founded in 1906, we collect, process and recycle raw scrap metal (ferrous and nonferrous) and provide processed scrap metal to mills and foundries around the world.Our used auto parts stores provide low-cost quality parts to customers across the U.S. and Canada. Our steel manufacturing facility transforms recycled scrap metal into quality finished steel products such as reinforcing bar (rebar), wire rod, coiled bar, merchant bar and other specialty products.

COMPANY

Schnitzer is a global leader in the collection, processing, and sale of the world's most recycled product: steel. Through our integrated operating platform, we process scrap metal and we manufacture finished steel products from our own scrap metal. Properly handled, scrap metal is a continuous and valuable resource that can be re-melted and reshaped into new products countless times while providing significant economic and environmental benefits as compared to virgin materials. We recycle metals ranging from iron and steel to aluminum, copper, lead, stainless steel and zinc. Schnitzer provides the complete cycle of reuse across our company:

Auto and Metals Recycling Business – collects, processes, and resells a wide variety of scrap metal for new metal production and provides recycled auto parts for retail customers

• Metals Recycling – salvages scrap metals from vehicles, home appliances, rail cars, industrial machinery, manufacturing scrap and construction and demolition materials for use by steel mills and foundries in new products
• Auto Recycling – sells used auto parts from end-of-life vehicles to retail and wholesale customers and supplies auto bodies to our metals recycling facilities and other recyclers
• Steel Manufacturing Business – produces high-quality reinforcing steel and wire rod used in new construction utilizing scrap metal nearly 100% sourced from our Auto and Metals Recycling Business

Since our founding in 1906 Schnitzer has grown into a global leader in metals recycling through a combination of organic investments and acquisitions which provide state-of-the-art processing, manufacturing and information technologies. Today, Schnitzer operates 105 recycling facilities, including seven deep water ports – on both U.S. coasts and in Hawaii and Puerto Rico – which enable efficient delivery of processed scrap metals to steel mills and foundries around the world. A fundamental driver of our business is the global demand for recycled metal which has been increasing due to advances in processing technologies and significant environmental benefits. We collect scrap metal in North America, processing it for reuse and selling it to steel mills and foundries globally. From emerging to developed markets, our unique and flexible platform supports the world's economic growth.Schnitzer Steel Industries, Inc. has corporate headquarters in Portland, Oregon and has traded on the NASDAQ Stock Market under the symbol SCHN since its IPO in 1993. The company has paid a dividend every quarter since its public listing.

AUTO RECYCLING

Schnitzer operates Pick-n-Pull, one of the nation's premier self-service used auto parts networks dedicated to supplying customers with low-cost, quality used auto parts. Pick-n-Pull has 55 auto recycling facilities in 15 U.S. states and Canada as well as an online inventory for customers to rapidly locate specific vehicles and track availability of parts.We purchase approximately 350,000 used and salvaged vehicles annually from tow companies, private parties, auto auctions, city contracts and charitable organizations. After the autos are properly drained of fluids and hazardous materials are removed, the autos are then set in our well-organized yards for customers to select and pull valuable parts. We also sell some vehicles as 'rebuilders.' Over five million customers visit annually, from do-it-yourself retail customers to recreational mechanics, professional rebuilders, entrepreneurial business owners, volume resellers and collision repair shops.Each facility stocks a large number of domestic and foreign cars, vans and light trucks which are continually replaced by new arrivals to offer our customers a wide and fresh selection of parts from which to choose. The customer pays a nominal admission fee, finds a vehicle with the desired parts and removes the part with their own tools, or using our wheelbarrows and engine hoists. After a vehicle has finished its time in the retail area, our staff removes remaining recyclable nonferrous materials and valuable core parts that can be sold wholesale such as engines, transmissions and alternators. The remaining auto body is crushed and sold as ferrous scrap metal to metal recyclers, including our metals recycling facilities.

Why buy auto parts from Pick-n-Pull?

• Our quality recycled parts saves money, energy, resources and landfill space
• Our huge inventory includes many hard-to-find parts
• Our computerized parts interchange system lists alternative vehicles that have the same parts
• Our parts are considerably less expensive than traditional parts sources
• Our shopping experience and excellent customer service can't be beat

Recycling, Sustainability and the Environment

Our vehicle disposal process recycles everything we possibly can. Countless parts are purchased by retail and wholesale customers as a sustainable and cost-effective alternative to purchasing from traditional parts sources. Parts that can be refurbished (i.e. transmissions, alternators, compressors) are sold for remanufacturing. Many vehicle fluids including gasoline and oil are recycled. Ferrous and nonferrous metals are recycled and sold to steel mills and foundries for new products. All of this reuse reduces the amount of virgin materials needed to create new products as well as the energy needed to create them.

Environmental compliance and conservation is a priority. We have implemented standardized policies and procedures at all locations for managing vehicles and disposing of hazardous wastes. In fact, our best practices set many of the standards adopted by local communities as guidelines for others to follow.All of these efforts taken together protect the environment, beautify our neighborhoods and reduce the cost of new goods by returning valuable scrap metal to new production.

RECYCLING PROCESS

The recycling process at Pick-n-Pull begins with the arrival of a new vehicle. We purchase vehicles from many sources including tow companies, private parties, auto auctions, city contracts and charities.In this case, an individual has a car he no longer needs and has brought it to his nearby Pick-n-Pull location to get some money for it. At the same time, he’s comforted to know that his vehicle will be put to good use and recycled.

Schnitzer's team works with national businesses:

• Acts as a strategic partner
• Provides synergies between all departments from operations, purchasing, accounting and transportation
• Implements ongoing improvement initiatives
• Uses best practices and controls at plant levels to ensure proper handling and reporting for scrap
• Continually looks for new markets for scrap and finds efficiencies in processes
• Builds and maintains ongoing partnerships with automotive, lighting and HVAC manufacturing leaders that manage based on best practices
• Manages the full scope of recycling efforts for partners, utilizing a strong support staff to handle all aspects of reporting
• Continually develops and manages ongoing improvement initiatives between corporate and plant/facility locations
• Implements controls and best practices at multiple sites while creating synergies between corporate and regional needs
• Consolidation of vendors and handling for all phases of recovery program
• Develops new programs
• Performs plant assessments and waste audits to capture new revenue streams for partner companies