Scrap processor Metalico is considering other options for acquiring a shredder after a deal to acquire one in Rochester, New York, fell through in 2006, company executives said in a conference call Friday.

Metalico announced in March 2006 that it intended to acquire Union Processing in Rochester, which processes approximately 120,000 long tons/year of ferrous scrap using a 98-inch [rotor diameter] shredder. Metalico has in the past supplied a small portion of Union's ferrous throughput.

"We were not able to come to satisfactory terms and so we terminated that effort," Metalico President and CEO Carlos Aguero said during the call, adding that other options for acquiring a shredding operation are being pursued. "We have locations under consideration in Rochester and Syracuse [New York] and are in the process of determining now which is best for us," he said.

Metalico's expansion strategy received another setback last year when it terminated the planned acquisition of Niles Iron & Metal, which operates two scrap yards in northeastern Ohio processing a combined 200,000 lt/year of ferrous scrap. The acquisition, announced last July, would have doubled Metalico's ferrous scrap volume.