Idled Kentucky UBC Recycling Facility Gets New Life

SEATTLE (Scrap Monster): Real Alloy Holding Inc.,-a subsidiary of California-based Real Industry Inc. has announced its decision to restart operations of its used beverage can (UBC) recycling center at Morgantown, Kentucky, which has been idled since December 2015. Real Alloy Holding Inc. has decided to restart operations based on rising consumer demand from the region. The company press release states that operations at the plant will start over beginning October this year.

According to Kyle Ross, president and CEO of Real Industry, the company’s top management has been holding preliminary discussions with current and potential investors on refinancing of its senior secured notes. Incidentally, Real Alloy Inc. has $305 million worth senior secured notes which are coming due in January 2019. The New York-headquartered global investment and banking firm Jefferies LLC has already been appointed to assist the company with the refinancing process, Ross said.

Terry Hogan, president of Real Alloy noted that the company is extremely happy to resume recycling operations at Morgantown facility. The restart will result in utilization of machinery, which has now been idle for nearly 20 months. The ramping up operations of the equipment is under process. Once operational, the facility will provide job opportunities to nearly 30 people. The plant is expected to process approximately 50,000 tons per annum, which in turn will account for almost 6% of the company’s total North American production.

The aluminum UBC is the world’s most recycled packaging item. However, the rising imports of aluminum can stocks to the US during the first half of the current year could lead to reduced demand for UBC during the rest of the year.

Real Alloy Holding Inc. comprises of two units- Real Alloy North America and Real Alloy Europe. It operates 27 facilities strategically located in six countries across North America and Europe. It converts magnesium and aluminum scrap and by-products into reusable metal. It employs cutting-edge technologies to process variety of scrap materials, thereby reducing the amount of residual waste from manufacturing, which would otherwise end up in landfill.