Shred-Tech Acquires CM Shredders

Two highly regarded companies in the industrial shredding and recycling sector join forces

Cambridge, Ontario industrial shredding and  recycling equipment manufacturer Shred-Tech Corp has announced the acquisition of Sarasota, Florida- based CM Shredders, by its parent company The Heico Companies. The move augments Shred-Tech’s product portfolio, extending its global reach, and fortifying its North American manufacturing capabilities.

CM Shredders, a recognized leader in the tire recycling industry, has a history of innovation and a strong market presence. The company designs, engineers and manufactures tire recycling equipment and industrial shredders at its 40,000 sq. ft. facility in Sarasota.  All CM employees will be retained.

Together the companies have 250 employees.

“These are very exciting times for CM Shredders and the tire recycling industry,” CM General Manager Charles Astafan said “The synergies between the two companies will have a profound impact on the industry, CM and Shred Tech are both global companies and this acquisition will allow both companies to rapidly expand that presence.

With the acquisition of CM Shredders, Shred-Tech is poised to expand its global footprint. CM Shredders’ established presence in tire recycling and key global markets like Asia and the Middle East will provide Shred-Tech with access to a broader customer base and bolster its product portfolio, offering customers a more comprehensive suite of primary, secondary, and tertiary size reduction and material destruction systems.

“I think global expansion will be a core focus,”  Shed-Tech Marketing Manager Ben Street, said. “CM has  strength in parts of the world where Shred-Tech is not currently doing business. The new diversified product portfolio will be enticing to our customers”.

The combined strengths of Shred-Tech and CM Shredders in manufacturing will bolster efficiency, scale, and agility, especially following the recent manufacturing capability expansion at the Shred-Tech Thailand facility. This synergy is expected to drive operational excellence, further positioning the merged entity as a leader in the industry.

“As we move forward expansion into new markets is certainly going to be at the top of our list,” CM Sales & Marketing Director Mario Vasquez said.   The merger can facilitate and speed up entry into previously untapped markets or regions from both sides, especially those with emerging recycling needs or stringent environmental regulations. For instance, many developing countries are increasingly focusing on sustainable waste management practices, presenting a ripe market for advanced recycling solutions.

The strategic acquisition enhances Shred-Tech’s competitiveness in the marketplace. By combining resources, engineering expertise, and manufacturing capabilities, the expanded entity is better positioned to meet the evolving needs of clients and respond effectively to industry challenges.

When asked about core target markets, Shred-Tech’s Ben Street said: “That’s a tough question because we’re dedicated to material reduction on an industrial scale in all markets. Shred-Tech has a long-standing reputation as the largest global manufacturer of shredding trucks with a diverse industrial 2 and 4 shaft shredder assortment. On top of that we rolled out heavy machinery distribution in 2022.  With CM we now have a solid footing in tire recycling and a great basket of new technology. As a marketer this giant catalog of products is exciting.”

The merger also provides an opportunity to pool R&D efforts to innovate and improve recycling technologies, Vazquez said.  This could involve developing more efficient shredding and size reduction systems, advanced sorting systems, and innovative material recovery processes that cater to a wider range of materials with higher purity outputs. “

“Leveraging the combined technical knowledge of over 80 years in the industry between the two companies and in-depth market insights, gives us an opportunity to offer more customized solutions tailored to specific industry needs.,” Vazquez said. Additionally, expanding service offerings, including consulting, maintenance, and operational support, can create a more comprehensive value proposition for clients.

Lastly, Integrating digital technologies will significantly enhance product offerings. This includes smart recycling equipment with predictive maintenance capabilities, data analytics for optimizing recycling processes and traceability in recycled materials, Vazquez said.

“We are excited to bring the CM Shredders team into the Shred-Tech family. We are eager to accelerate our growth in the Industrial Shredding Systems world,” Shred-Tech President  Romel R. Reddi said. “Our combined product lines will greatly diversify the recycling streams and customers we can support. We are also very excited about the opportunities for new product development. With the combined talent of our world class engineering teams we will be rapidly expanding our products for both tire recycling and industrial shredding applications.”

Going forward, Street and Vazquez said both brands are highly recognized in the market and will be retained, preserving the value and reputation of each.

As for future acquisitions, Shred-Tech’s Ben Street said acquisition always depends on two factors, strategic and opportune. “We are growing and it’s a great time to be with this growing company.”

© Scrap Tire News, April 2024