One man’s trash, they say, is another man’s treasure, never more accurate than in the world of recycling steel. Unlike plastics, steel can be melted and reshaped countless times, transitioning from a vehicle’s skeleton to supporting beams in a skyscraper with ease.
Steel recycling stands out for its environmental benefits, slashing related CO2 emissions by around 75% through a process that consumes about 70% less energy compared to manufacturing new materials. As the world pivots towards a greener tomorrow, recycled steel is in high demand. Today, recycling accounts for two out of every three tons of steel produced, a stark rise from just one in ten tons back in 1980.
The Driving Force of Recycled Metal
The metal recycling market, valued at $52.1 billion in 2019, is on track to hit $76.1 billion by 2025, growing at a robust CAGR of 7.8%. Leading the charge is Greenwave Technology Solutions Inc. (GWAV), overseeing 13 metal recycling facilities spanning Virginia, North Carolina, and Ohio. It also operates Scrap App Inc., a subsidiary introducing an AI-based quoting system for metal from construction projects, marking its territory in the market.
Thriving in Business Growth
Since its establishment, Greenwave has seen significant growth, generating $18.46 million in revenue with $1.23 million in operational cash flow by the mid of 2023. The company is in expansion mode, aggressively broadening its network of recycling sites through strategic acquisitions. With a keen eye on prudent deals, Greenwave aims to steer clear of overpaying and is strategic about maintaining cash flow impact.
Innovating with Greenwave’s Scrap App
Greenwave’s subsidiary, Scrap App, recently unveiled new AI-driven features to fine-tune pricing and sales strategies. According to a recent press release, Greenwave envisions Scrap App’s national expansion, coupled with its AI capabilities, as a catalyst for accelerated growth.
Greenwave’s Chairman and CEO, Danny Meeks, expressed, “We plan to expand Scrap App to multiple new markets across the United States in the coming weeks. As a technology platform, Scrap App can scale to new markets with minimal capital investment, promising substantial high-margin revenue potential and shareholder value creation.”
Enhancing Recycling Plant Operations
Greenwave’s recycling facilities are geared towards processing both ferrous and nonferrous raw scrap metals, integrating in-house technologies for higher processing volumes and operational efficiencies. To elevate efficiency and sales figures, the company recently activated a metal baler, wire stripper, and three shears at its non-ferrous processing facility in Portsmouth, Virginia.
Greenwave’s Strategic Expansion with Second Shredder
Greenwave’s clientele spans large corporations, manufacturers, retail buyers, and governmental bodies. A recent announcement revealed Dominion Energy Inc. (D) connecting Greenwave’s second automotive shredder to the grid, poised to double Greenwave’s annual shredded ferrous output. With an eye on unlocking additional revenues and margins, Greenwave foresees record steel volumes and revenues for the year ahead.
CEO Danny Meeks remarked, “Greenwave’s second shredder provides the backbone for our expanded network of recycling facilities, setting the stage for exponential revenue, margins, and cash flow growth. Our hub-and-spoke approach positions us favorably within the acquisition landscape of top scrap metal conglomerates.”
Promising Growth Trajectory
Greenwave, operating under the moniker Empire Recycling, reports robust growth from its Virginia Beach and Cleveland scrap yards, with revenues, volumes, and profits trending upwards. A successful restructure of senior secured debts sets the stage for operating the second auto shredder in Carrollton, Virginia, expected to go live by early April.
As the metal recycling sector burgeons, Greenwave Technology Solutions positions itself for sustained growth by acquiring competitors and venturing into new markets, recognizing the burgeoning potential in the industry.
