Construction of a state-of-the-art scrap processing plant is expected to begin this fall at Delta, with the promise of more than 100 jobs within the next three years.
MetalX, an Indiana-based company, is in negotiations to build the $35 million plant on 60 acres of mainly farmland on State Highway 109 at the intersection of U.S. 20A. The location, directly across from North Star BlueScope Steel, was selected to capitalize on the company’s supply relationship with the steel mill.
Danny Rifkin, MetalX president and CEO, said the first phase will be fully operational in fall 2018, with the business progressing over the next three years. He expects the process of receiving local permits and site plan approvals to be routine and to be completed within 30 to 60 days.
“We want to make sure everything is in place to be sure we’re going forward with construction,” Rifkin said.
The company is also expected in the next 30 days to petition for annexation of the plant into the Village of Delta. “Once we receive (the request), we will act accordingly,” said Delta Administrator Brad Peebles.
Upon completion of its first phase, the plant will recycle more than 500,000 tons of scrap metal annually. That volume is expected to increase to 700,000 tons annually by 2020. The plant will process industrial scrap into a form that can be re-melted by purchasers.
The facility will include a staging and distribution yard and a full-service fleet transportation hub. It will also provide consulting and management services to industrial companies.
The Delta location will operate independently, offering services over an approximately 200-mile radius from Fulton County.
Presently, MetalX is pursuing a package of incentives, both from the state and locally. They include Community Development Block Grant funding for the plant’s rail infrastructure and a job creation tax credit from Delta.
“MetalX has been a great partner to work with towards the completion of this project,” said Matt Gilroy, executive director of the Fulton County Economic Development Corporation. “We’re excited to continue with them toward completion of everything to place them toward construction.”
He and Peebles said tax revenue the county and village will receive annually from MetalX hasn’t been determined.
Rifkin said the plant will not release emissions, and no concerns have been voiced about increases in traffic.
“Certainly there will be more traffic, probably to the tune of five to 10 trucks per hour. We don’t see that as a significant impact on that corridor,” he said. “(And) there will be environmental permits required. We have no concerns about being compliant or adding anything to the carbon footprint.”
The company likely will not advertise for employees until next spring, Rifkin said. Eighty people will be hired for the plant’s first phase. A total of over 100 employees are expected to be hired by 2020.
Construction of the plant follows MetalX’s purchase of M&K Metal Processors, located at 6946 County Road 5, east of Delta, in June. That business re-opened as a community recycling center under the MetalX brand on July 17, but will also serve industrial and commercial customers during construction of the new plant.
“We’re very excited about the project. It’s a big opportunity for MetalX, and we think it can be very big for the Village of Delta and Fulton County,” Rifkin said.
MetalX was formed in 2012 by Danny and Neal Rifkin. Based in Waterloo, Ind., it operates six facilities in northeast Indiana and northwest Ohio.
It’s the second out-of-state business this month to announce a construction project in York Township. On Aug. 1, the Fulton County Commissioners approved a zoning change on County Road H to accommodate Origo, a Minnesota-based manufacturer of nutritional supplements for farm animals. The company will build a $6.5 million facility that will employ 20 people.
Reach David J. Coehrs at 419-335-2010.