Scrap Metal Services LLC has bought auto parts scrap yards in Gary, Lake Station, Westville and DeMotte.
The Burnham-based metals recycling firm purchased Paul's Auto Yard Inc. and Shafer's Auto Yard Inc. for an undisclosed amount. Scrap Metal Services, which processes metal for steel mills and dismantles oil rigs, is expanding its Midwestern presence further into Northern Indiana and Southern Michigan, and diversifying by getting into the retail auto parts business.
"This is a new retail service business for SMS, which allows our company to further diversify and strategically expand its recycling operations in the Midwest," said CEO Jeffry Gertler.
Scrap Metal Services is spinning off a new division called SMS Paul's Auto Yards, which will run eight self-service auto parts yards, which treeshade mechanics can visit to find and remove parts from a wide selection of cars and trucks.
The yards also buy ferrous and nonferrous scrap for recycling. Scrap Metal Services plans to make future capital investments to make them more user-friendly and efficient, Gertler said.
Outside of Northwest Indiana, the auto scrap yard locations include South Bend, Elkhart and Coloma, Mich.
Paul Schafer, president of Paul's Auto, will continue to managed the day-to-day operations of the yards. Signs will be changed to read SMS-Paul's Auto LLC, but the hours will remain the same.
"We are pleased to be able to join SMS at this time and look forward to continued growth of our auto parts and recycling business as an important new segment for SMS.," Shafer said.
Paul Shafer, president of Paul’s Auto Yard Inc., says, “We are pleased to be able to join SMS at this time and look forward to continued growth of our auto parts and recycling business as an important new segment for SMS.”
Scrap Metal Services also operates scrap processing, steel mill support service, shipbreaking and oil rig dismantling facilities in the United States and Mexico.