Busche Performance Group and MetalX sign deal to consolidate aluminum sourcing and management
MetalX to manage sourcing of aluminum raw materials for BPG foundry operations
In a joint release, Busche Performance Group ("BPG") and MetalX have announced that the companies have finalized an agreement in which MetalX will be responsible for managing the activities related to sourcing all aluminum raw materials for BPG foundry operations.
Under the terms of the agreement, effective January 1, 2018, MetalX assumed responsibility for management of all activities related to the sourcing, procurement, delivery, and administration associated with aluminum scrap and refined aluminum products consumed and generated by BPG's aluminum foundries. The BPG foundries will maintain direct responsibility for payment to suppliers, establishment of material specifications, and governing terms and conditions.
Commenting on the arrangement, Daniel J. Dressler, VP of Procurement and Business Development for parent company BPG said, "This agreement will allow the foundry division to be better connected to the aluminum markets and gain significant benefits from the MetalX team's expertise with buying and selling of aluminum raw materials in the metals marketplace. This will also allow BPG foundries to focus on growing their foundry operations and "partner" with a highly-regarded metals recycling and trading company that already has demonstrated performance with managing scrap for all of our US machining facilities."
Busche Performance Group founder, president and CEO, Nick A. Busche, noted that BPG and MetalX have worked closely for many years and have developed an excellent partnership. Mr. Busche stated that, "The Rifkin family and MetalX have been an extraordinary resource for us the past several years. They have provided the metals management expertise that BPG needed to continue its aggressive growth in all segments of our business. This new metal procurement relationship with our aluminum foundries will provide even greater synergies and growth opportunities to serve our customers."
MetalX president and CEO, Danny Rifkin, added "This strategic partnership is the result of a joint effort to develop a sourcing model that will allow BPG's foundries to concentrate on the design and manufacture of aluminum castings for critical applications, and at the same time, benefit from the savings that will arise from a comprehensive metals management strategy. We believe that our ability to access a much broader supply base will ensure consistent availability of quality raw materials to support Busche's dynamic growth plans. "
MetalX will be sourcing approximately 70 million pounds per year of high-purity low-Fe A356 alloy aluminum, and seeking to develop additional suppliers that will include scrap processors, secondary producers, and industrial generators. Potential suppliers should contact Brian Rosenblatt at MetalX for more information about supplier qualification, or with any spot and contract offers.
