Resource Exchange of America Corp. is working to become a leader in the ferrous and nonferrous scrap metal industry. The Florida-based company is pursuing an aggressive acquisition policy to achieve its goal and become a vertically-integrated recycling company.
The company accelerated its acquisition and joint ventures strategy in the past quarter. It announced joint ventures with Paw Materials, a processing and demolition company, and T&M Salvage, a metal cycling company in one of Florida’s largest industrial areas. The company also signed a partnership with HHL, an asset recovery firm.
Perhaps most importantly, Resource Exchange of America signed a joint venture with Sea Lion Ocean Freight, a subsidiary of Thomas Griffin International. An agreement with an ocean freight company of Sea Lion’s stature is very important. It enhances the company’s presence in the Gulf of Mexico and the Caribbean. The partners hope to develop more domestic business and business in lucrative foreign markets in the months to come.
Many recycling firms struggled during the recession but RXAC remained strong; in part due to its access to deep-water ports that opened up lucrative overseas markets. In fact, the company reported a rise in scrap offers from Asian markets during the second half of August. In recent weeks, ferrous scrap offers into Southeast Asia hit $400 a ton and offers into China hit $400 a ton.
The rise in prices from recession lows is attributed to both tightening supplies and restocking by Asian mills ahead of their busy season over the next few months. The CEO of RXAC, Dana Pexas, said, “As the markets continue to recover from the global recession, this is an area in which we expect to see substantial growth. The news also confirms our long-term goal of expansion into Asian markets – a market we surely will give our keenest attention over the next couple of months.”
For further information on the company, please visit its website at www.resource-exchange.com.