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Non-Tech : RECY Looking Good... A -- Ignore unavailable to you. Want to Upgrade?

To: voyager.ed who wrote (4229)	3/3/1998 10:56:00 PM
From: SFJayhawk	Read Replies (1) \| Respond to of 7006

Cost savings In talking with Alex at RECY and studying the industry, two savings off the top of my head are insurance savings = several hundred thousand dlooars last year with acquisitions and most important of all is better pricing power with contracts. Many mini-mills need to be assured that they will have a steady supply of scrap coming into their furnaces because the cost associated with shutting them down temporarily is very expensive. By having several scrap facilities in one area, RECY is able to assure mini-mills the amount of scrap that they need, thus giving them better leverage in negotiations. One major cost savings that the company will benefit from is the deregulation of the energy industry(not merger related). This could save the company up to 30% off of their energy bill, which is rather large for scrap facilities. I must say that RECY's keeping in management is nice short-term, but rather suspect long-term. The company will have trouble building up a corporate identity by keeping in old management. Often, there is a reason you are able to buy a company cheap...bad facilities, managment, etc...which comes back to your question, I guess:( Alan