Dive Brief:

• Recycled metal prices in a free fall factored into the decision for Schnitzer Steel Industries Inc. to merge its metal recycling and automotive parts businesses into a single division.
• The company reported a net loss of $196 million in Q2, while the metals segment lost $187 million within the same quarter.
• The company plans to implement a cost reduction program and productivity improvement initiative that is expected to increase its financials by $60 million by 2016's close.

Dive Insight:

According to the company, the two segments will merge by the end of the year. In recent years, the challenging market has been having a negative impact on the company. August 2012 saw 300 workers laid off, which comprised 7% of the workforce, due to dropping ferrous markets. In a move designed to increase productivity, Schnitzer consolidated its headquarters to Portland, OR, in February 2013.

Schnitzer is one of North America’s largest manufacturers and exporters of recycled ferrous metals, with operations in 14 states, Puerto Rico, and western Canada.