ferrous processing and trading scrap metal business overview

Ferrous Processing & Trading Co.

A business overview to FPT’s Ferrous and non-Ferrous scrap metal processing

Ferrous Processing & Trading Co. Scrap Metal Recycling 313-567-9710 www.fptscrap.com

mailto:http://www.fptscrap.com

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Ferrous Processing and Trading Organizational Overview

Ferrous Retail Used Auto Parts (Parts Galore)

Steel Service Center(Premier Steel)Non-Ferrous

• Consist of 20 yards focused in three regions (Michigan/Ontario, Ohio, and Southern Markets) collecting, processing and transporting both ferrous and non-ferrous scrap

• Sells between 2.5 million and 3.0 million tons annually

• Services include shredding, baling, briquetting, shearing, torching, granulating and sorting

• Self-service used auto parts retail outlet

• Three locations encompassing approx. 70 acres in the Detroit area

• Purchase vehicles from charitable organizations, impound yards, dealers and peddlers

• Attractive opportunity for expansion to spur growth and broaden scrap supply

• Slitter of prime and secondary flat rolled steel coils and steel warehouse distributor located in Detroit, MI

• Key relationship synergies enhance both supplier and customer relationships for FPT and Premier Steel

• Sales to both domestic markets and export markets

• Deals in all non-ferrous metals and soon to expand retail non-ferrous in Florida

• Key supplier to primary aluminum mills, secondary aluminum smelters, domestic automotives and Tier 1 Suppliers



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Ferrous Processing and Trading Full Range of Scrap Recovery Processing

Capabilities• Broad product and service portfolio offers a strong competitive advantage

• Positioned as a fully integrated supplier for all ferrous and non-ferrous scrap material and processing needs

• Processing capabilities include:• Shredding Baling• Shearing Granulating• Torching Hot briquetting• Non-ferrous

• Simplifies the customer’s purchasing process• Provides significant cross-selling opportunities to drive revenue growth• Product diversification mitigates revenue volatility



Industrial 59%

Retail Trade35%

Demolition6%

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Ferrous Processing and Trading’s Strong, Diverse Base of Suppliers

• Sources raw materials from over 6,000

industrial supply accounts

• FPT also sources scrap materials from

19,000 individual peddlers each month

• Creates operational efficiencies and cost

savings for suppliers a valued partner

• Superior processing capabilities allows

FPT to maintain product flow• Many smaller suppliers do not have comparable processing capabilities

• No material dependence on any single

source for raw materials

Source of Supply



Strong Supplier Relationships

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• FPT continues to be a strong manager and buyer of GM scrap in Michigan and Ohio

• Operations currently at GM facilities in Flint, Lansing, Holt, Parma and Lordstown

• One of the largest national consumers of GM material

• FPT acts as the Scrap Manager for the Ford Motor Company handling all the production related scrap in the Detroit metro area

• FPT is directly involved in all Ford generated scrap nationally

• FPT acts as the Scrap Manager for Nissan handling all production scrap for the three Nissan production facilities in Smyrna, TN and Decherd, TN and Canton, MS

• On site presence in Smyrna and Canton

• FPT acts as a Scrap Advisor and Plastics scrap manager for Chrysler• Services Canadian accounts

GM Ford Nissan Chrysler

GM



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Loyal, Blue-Chip Customer Base• Leading supplier to a broad network of customers which include electric-arc furnace

mills, integrated steel mills, foundries, secondary smelters, metal brokers, and OEMs

• Maintains long-term relationships with a blue-chip customer base• Top ten customers average length of relationship spans over 20 years

• Strong reputation for quality, industry expertise, on-time delivery, transportation capabilities, robust service capabilities and client-focused customer service

Fiscal Year Ended May 31,

2010 2011 Length of

Customer Net Sales % of Total ¹ Net Sales % of Total ¹ Relationship

Customer 1 $153.9 16.3% $195.1 15.3% 25+ years

Customer 2 57.7 6.1% 165.5 13.0% 25+ years

Customer 3 43.3 4.6% 56.0 4.4% 25+ years

Customer 4 29.9 3.2% 52.9 4.2% 15+ years

Customer 5 22.2 2.4% 34.5 2.7% 25+ years

Customer 6 37.6 4.0% 33.3 2.6% 25+ years

Customer 7 11.4 1.2% 31.6 2.5% 25+ years

Customer 8 18.3 1.9% 27.6 2.2% 6+ years

Customer 9 20.0 2.1% 24.9 2.0% 25+ years

Customer 10 6.6 0.7% 23.7 1.9% 25+ years

Top 10 Customers $401.0 42.5% $645.1 50.7%

1 Based on FPT unadjusted sales of $944.4 million and $1,272.8 million in 2010 and 2011, respectively

Top Ten Customers($ in Millions)



http://www.republicsteel.com/index.php

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Unmatched Innovation & Engineering Capabilities

Industry leading in-house engineering and maintenance team

Four engineers and 15 highly skilled shop employees

Unique team that regularly designs, installs and maintains the Company’s equipment

Creates operational efficiencies through the development of standardized and interchangeable parts, fabricated in-house, that are able to be used across the Company’s locations

FPT’s engineering team is focused on increasing productivity and preventing equipment failure

Created non-ferrous separation system that increases non-ferrous scrap recovery rates

Designs, installs, and maintains FPT’s shredders, balers and separating systems reducing downtime

Internally developed online monitoring systems allow for instant email alerts to executive, engineering and maintenance teams to dispatch support to repair equipment quickly and efficiently

FPT Engineers design and construct 80% of all necessary systems

INSTALL

MAINTAIN

DESIGN



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Ferrous Processing and Trading Commitment to Quality

Most facilities are registered to the ISO 9001 Standard and designed to maximize efficiencies

Quality Department includes:

Professional quality management (19 years experience)

Quality analysis

Laboratory furnace

Chemical engineering operations

Qualified operators:

Maintain industry and customer quality standards

Evaluate metals through spectrometers and wet system analysis

Testing facilities document the chemistry of all scrap produced

Ensures quality of all shipments and quantifies their value



ferrous processing and trading scrap metal business overview

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