Shieldalloy Metallurgical Corporation Information

Shieldalloy Metallurgical Corporation (SMC) is a metals company that at one time produced alloy additives for the aluminum industry at its facility in Newfield, N.J. The company ceased the production of these materials on June 30, 2006. The current company and its predecessors (who declared bankruptcy in 1997) had manufactured products for the specialty metals industry at this location for more than 40 years. However, due to competitive pressures, the company could no longer continue to compete with its domestically produced metals and alloys. Today, SMC has just 5 full-time salaried employees, 2 unionized employees and 1 part-time employee whose primary functions are to assist in the environmental remediation of the Newfield site. The medium-term objective is light industrial redevelopment of the majority of the site. The company also has a small warehouse and leases space to tenants including KB Construction and the Borough of Newfield who make use of space at the site. SMC fully recognizes its obligations to the Borough of Newfield, its citizens and the environment. The company has a proven track record of dealing with the environmental issues left at the site by the bankrupt former operators. For example, in April 2006, SMC spent $17.9 million to ensure the remediation of the site's non-radiological contamination. Groundwater remediation is being carried out at the site by one of the nation's leading remediation contractors, TRC, in accordance with a rigorous remedial plan approved by the NJ Department of Environmental Protection. As a part of the agreement to bring the company out of bankruptcy in 1997, SMC's current owners entered into a court-sanctioned settlement with NJDEP, the U.S. Nuclear Regulatory Commission (USNRC) and the U.S. Environmental Protection Agency (EPA) that set forth the anticipated costs for all environmental remediation at the site and SMC's current owners placed the required funds and credit instruments in a trust to meet all of the obligations agreed to by the regulators. SMC is ...