Schnitzer
5551 Duncan Bay Road , Campbell River, British Columbia, Canada

COMPANY

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.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.

METALS RECYCLING

As one of the nation's largest recyclers of scrap metal, Schnitzer's metals recycling facilities collect, broker, process and recycle metal, both ferrous (containing iron) and nonferrous (not containing iron). Our integrated platform enables the delivery of processed metals to steel mills and foundries around the world for new production due to our strategically located facilities. Continuous capital investments in advanced technologies provide high quality, operationally efficient scrap metal processing.We purchase scrap metals from the Western U.S. and Canada, Hawaii, Alaska, the New England states, the Southeast and Puerto Rico. Our proximity to large industrial suppliers and railways, deep water ports and major highways provides us with strong sources of supply and a competitive advantage to deliver processed scrap metal wherever demand is greatest.Scrap metal is purchased from industrial manufacturers, railroads, auto salvage facilities, metal dealers and individuals. The metal typically comes from obsolete machinery and equipment such as autos, railroad cars, railroad tracks, home appliances and demolition metal from buildings and other obsolete structures. As part of our vertical integration, we also purchase crushed auto bodies from our auto recycling facilities. Purchased scrap arrives at our metals recycling facilities daily by ship, barge, rail, truck, car and even individuals on foot.Once the scrap metal arrives at one of our yards, it is processed by sorting, shearing, shredding, torching and baling. This results in metal pieces of a size, density and purity specified by steel mills and foundries for melting and use in the production of new steel and other metal products. Smaller, more homogeneous pieces of processed metal have more value because they are more easily utilized in new metal production.One of the most efficient ways to process metal is to use shredding systems. A shredder reduces auto bodies, home appliances and other metal into fist-sized pieces in seconds. Shredded material is then carried by conveyor under magnetized drums which attract the ferrous materials and separate them from the nonferrous materials. The remaining nonferrous metal is further sorted and graded before being sold. Recycled metals are sold to domestic and foreign customers, including our Steel Manufacturing Business which purchases recycled ferrous metals to produce new steel. We ship to customers via bulk cargo ships, barges, railroad cars and trucks. We achieve cost efficiencies from our export facilities at seven deep water ports and locations close to major railroads and highways. Our recycling facilities have an aggregate processing capability of more than 5 million tons of ferrous metal and 600 million pounds of nonferrous metal annually.

We invest continually in our facilities to maximize cost efficiencies, to deliver the highest quality products and to ensure regulatory and environmental compliance. We operate mega-shredders at our export processing facilities in Oakland, CA; Everett, MA; Portland, OR and Tacoma, WA. Mega-shredders shred more efficiently, process a greater range of materials, and produce an end product which is denser and can be used more efficiently by steel mills. In conjunction with new state-of-the-art nonferrous metals recovery systems, mega-shredders improve the recoverability of valuable nonferrous metals such as aluminum, copper, brass, stainless steel, and zinc. Capital improvements and investment in new technologies have also been made to upgrade our facilities for fossil fuel conservation and to utilize clean and reliable electricity.Our strategy is focused on enhancing the inherent synergies in our auto and metals recycling facilities and with our steel mill. Our auto parts stores are key suppliers to our metals recycling facilities and we expect to continue to grow in core regions where we have a significant market presence and competitively advantageous port access. We look to grow through joint ventures that provide us additional opportunities for recycling metals and other materials. These businesses provide metals recycling facilities; removal and disposition of surplus railroad assets (such as railroad track); and demolition, dismantling and environmental remediation services.

Services

Schnitzer purchases scrap metal from the general public, national businesses, industrial manufacturers, scrap dealers, auto wreckers, construction / demolition contractors and more.Doing business with Schnitzer is easy! Our services include:

Vehicle Recycling:

• We recycle hundreds of thousands of vehicles each year, helping vehicle owners, communities and the environment in the process
• Once all contaminants have been properly disposed and all usable parts recycled from vehicles, we crush the remaining autobodies to complete metal recycling

Scrap Metal Processing:

• Convinent locations with modern unloading equipment and convenient hours
• Scales are certified and routinely calibrated, ensuring customer's loads are accurately weighed
• Quick, convenient payment
• Dedicated staff, equipment and processing times for large volume accounts
• Special onsite equipment like mobile cranes for special reclamation projects and other material handling needs

Environmental Stewardship:

• Committed to operating in an environmentally responsible manner
• Investments in state-of-the-art technologies to maintain air, water and land quality
• Practice sustainable recycling throughout our facilities, minimizing landfill waste
• Experienced handling of hazardous and other materials
• Visit our Sustainability Report for more information

STEEL MANUFACTURING

Schnitzer's Steel Manufacturing Business purchases recycled metal through our Auto and Metals Recycling facilities business and re-melts it into high-quality finished steel products. Operating as Cascade Steel Rolling Mills, we produce a wide range of products at our state-of-the-art mini-mill including reinforcing bar (rebar), coiled reinforcing bar, wire rod, merchant bar and other specialty products. Our mini-mill is the only one in the Western U.S. that can obtain all its recycled metal through its own affiliated metal recycling operations. We have an annual operating capacity of up to 800,000 tons of finished products.Cascade Steel's electric arc furnace (EAF) is more energy efficient and environmentally friendly than traditional blast furnaces. Processed scrap is melted by the EAF and then cast into semi-finished goods called billets. On-site rolling mills convert the billets into the finished products, primarily reinforcing bar and wire rod.Cascade Steel sells to customers primarily located in the 10 western states and Canada from its mill in McMinnville, OR (near Portland) and a distribution center in El Monte, CA (near Los Angeles). Our mill has direct access to rail service and close proximity to major highways and deep draft marine terminals in Portland for cost-effective transportation. Typical customers are steel service centers, construction industry subcontractors, steel fabricators, wire drawers and major farm and wood product suppliers. In addition, Cascade is the only mill in the Western U.S. with the ability to produce products for the nuclear construction industry as it is Nuclear Quality Assurance (NQA) certified.