Jose Tavera Muñoz runs the FerroMetales recycling business. Located on an industrial site outside Puebla, the company operates a 1 000-tonne cutting force Harris shear handling some 18 000 tonnes per year, mostly ferrous.
According to Tavera, business is ‘OK’ despite major competition popping up in recent years. ‘Ten years ago, Puebla had ten scrap yards, today we have 30 or so. Luckily, scrap demand has gone up too.’
Steel mills are increasingly buying up individual yards to secure supplies, notes Tavera. ‘They’re more and more taking the role of a competitor rather than a buyer.’
Another thing that causes him concern is that steel mills have started buying directly from smaller- and medium-sized scrap collectors, ‘bypassing businesses like ours’.
‘We don’t sell!’
As a result, FerroMetales has seen business go down 30% in the last five years. ‘This is not only affecting us or fellow recyclers in Puebla – this is all over Mexico.’
Steel mills have approached Tavera offering to take over his yard. ‘Yes, they would be more than happy to buy our company but we say “no way”. I don’t want to sell it. We’ve built this business ourselves and we have the ambition to make it grow bigger in the years to come.’
Tavera is the second generation owner of FerroMetales. His father started the company 21 years ago. It now handles some 18 000 tones of ferrous scrap, mostly sourced from industries and construction sites and companies.
Moonlight shearing
‘Mexico’s economy has seen growth in recent years. There’s a lot of production and across all sectors and we, the recyclers, benefit from that.’
FerroMetales has a workforce of 25 people, some of whom work on a night shift. ‘Energy prices have gone up in this part of Mexico but during the night hours electricity is 50% cheaper,’ explains operations manager Omar Angel.
