Greenwave Technology Solutions, Inc. announced that its subsidiary, Empire Services, Inc., is in the process of installing a second automotive shredder to double its processing capacity, which could result in its dealer scrap product line generating an additional $8 to 15 million in revenue over the next 18 months.
Further, Greenwave is installing a downstream processing system capable of recovering millimeter-minus pieces of metal from its shred residue or “fluff” as it is known in the industry. Greenwave expects that by recovering the metals from its shred residue, this new product line could generate an additional $10 to 20 million in revenue over the next 18 to 24 months and significantly increase Empire’s profit margins.
Empire generated $27.5 million in revenue in fiscal year 2021. It has expanded to 11 locations in North Carolina and Virginia with 96 employees over the past 20 years, primarily by re-investing its profits into growing the business.
“With the installation of this second automotive shredder, Empire’s operational infrastructure has the capacity to support significant growth with the goal of generating $100 million in annual revenue by 2025,” stated Danny Meeks, chief executive officer of Greenwave. “Prices for scrap metal are on the rise driven by depleted inventories and robust demand, with many analysts projecting they could go much higher. We believe Greenwave is one of the most attractive companies in the scrap metal industry given its current valuation and potential for significant growth. We appreciate Greenwave’s shareholders for their trust and support the past several months as we cleaned up our capitalization structure, closed a $37.7 million offering, and put systems in place to position the company for rapid expansion.”
For additional growth in 2022, the company plans to focus on acquiring profitable metal scrap yards in localities where the number of licenses is capped by local ordinance or policy.
