SMI Buys Kansas Recycler Allmetal, Expanding Midwest Scrap Footprint

Scrap Management Industries has acquired Kansas-based Allmetal Recycling, adding 10 yards to its network and deepening its reach across the central Midwest at a time when processors are racing to secure feedstock and regional scale, according to the company announcement.

The deal brings Allmetal’s operations in Wichita, Salina, Newton, Harper, McPherson, Great Bend, Kingman and Pratt into SMI’s portfolio, lifting the combined footprint to 19 yards across Missouri, Kansas and Oklahoma. SMI will now operate five automobile shredders, including two large-capacity units, positioning the company to handle higher scrap volumes as industrial demand and demolition flows remain uneven but resilient.

U.S. scrap recycling has seen steady consolidation over the past decade, driven by margin pressure, rising compliance costs and the need for capital-intensive processing equipment. Analysts say mid-sized, family-owned recyclers have increasingly opted to partner with larger regional platforms rather than compete alone, particularly in agricultural and manufacturing states where scrap generation is dispersed. Kansas, while not a coastal export hub, plays a role in supplying domestic steelmakers in the Midwest and Plains, making yard density and logistics efficiency critical.

SMI said Allmetal will continue to operate under its existing brand. The Kansas company, founded in 2009 by cousins Clint and Kolby Cornejo, has built a reputation for community-focused operations and safety performance, factors observers note are often decisive in acquisition talks where seller continuity matters. Both founders will remain in leadership roles and continue overseeing daily operations.

Chief executive Jerrit Burgess said the transaction aligns with SMI’s strategy of expanding capacity while keeping decision-making local. Industry groups argue that such structures can help retain employees and customers during integration, reducing the disruption that often follows roll-up acquisitions. For industrial and commercial accounts, SMI said the combined business will offer a wider service area, more container and transport options, and greater ability to manage multi-site scrap programs.

Market participants note that the timing also reflects expectations of tighter scrap availability later in the decade as infrastructure spending lifts steel demand and obsolete scrap generation lags. Larger regional processors are seeking to lock in supply through yard expansion rather than relying solely on spot purchases.

Analysts expect further regional deals as recyclers position themselves for stricter environmental standards and potential volatility in steel production. For SMI, the Allmetal acquisition strengthens its Midwest base while preserving a local operating model that many customers prefer.

Source: SMI

SUNSHINE Spotlight: The SMI–Allmetal deal underscores how regional scale and local control are becoming central to competitiveness in the U.S. scrap recycling market.