Company Profiles

Schnitzer Steel

United States

Schnitzer Steel operates in three vertically integrated business segments: Auto Parts (reusing and recycling auto parts), Metals Recycling, and Steel Manufacturing. Steel manufacturing is, on the whole, an extremely polluting and energy-intensive endeavor, with significant impacts throughout the supply chain. However, through the use of recycled raw materials and cleaner, more efficient, electric arc furnaces (or mini-mills), the impacts of steel can be greatly reduced. In fact, by using recycled metal the steel industry saves enough energy each year to power approximately 18 million households. Approximately half of the current steel production in the U.S. utilizes scrap steel as its primary feedstock but Schnitzer Steel is in a unique position in the steel industry as it uses essentially 100% recycled raw materials, operates only mini-mill technology for processing steel, and has an integrated business structure that is based entirely on a recycled materials loop. The company creates new steel products from its own processed recycled steel, partially collected from its own auto parts and auto recycling businesses. Additionally, the company owns a majority of the port/terminal facilities it uses and has strategically placed its recycling yards in close proximity to major transportation routes and its unprocessed metal suppliers. The steel industry accounts for 2%-3% of total U.S. energy consumption and Schnitzer Steel is continuing to invest in efficiency improvements within its steel facilities. Portfolio 21 encourages Schnitzer Steel to track and disclose its greenhouse gas emissions, and to set energy efficiency targets.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 11/30/08 and may not reflect current opinions or subsequent events.