Southeast Recycling Group (SRG) Announces Acquisition of NuCycle Assets and Merger with Morris Scrap Metal

Why It Matters

The expansion boosts SRG’s processing capacity and geographic reach, positioning it as a leading regional recycler amid rising demand for metal recovery. It also consolidates legacy expertise, enhancing supply‑chain resilience for automotive and industrial scrap markets.

Key Takeaways

• SRG will operate seven sites producing 300k tons ferrous scrap annually
• Acquisition adds 4,000‑hp Danieli shredder in Rock Hill, SC
• Merged Morris Scrap brings third‑generation expertise since 1931
• Combined workforce reaches 200 employees across NC and SC
• SRG expands footprint after 2025 merger and prior Sisk acquisition

Pulse Analysis

The United States metals recycling sector is entering a period of accelerated consolidation as manufacturers and end‑users seek reliable sources of secondary steel and aluminum. Rising steel prices, tighter environmental regulations, and the push for circular‑economy practices have heightened the value of facilities that can efficiently process both ferrous and non‑ferrous scrap. In this environment, Southeast Recycling Group (SRG) has emerged as a fast‑growing player, leveraging the combined heritage of Carolina Metals Group and Spartan Recycling Group to capture market share across the Carolinas.

SRG’s latest moves involve two complementary transactions. First, it will acquire the assets of NuCycle LLC, gaining control of a Rock Hill, South Carolina site that houses an 80‑by‑108‑inch Danieli Centro Recycling shredder powered by a 4,000‑horsepower motor and a downstream ballistic separator for low‑copper ferrous output. Second, the operations of Morris Scrap Metal in Kings Mountain, North Carolina, will merge into SRG, bringing the third‑generation Morris family and a legacy of scrap handling dating back to 1931. Together, the deals expand SRG’s footprint to seven locations with a combined annual capacity of 300,000 tons of ferrous and 75,000 tons of non‑ferrous scrap, supported by a 200‑person workforce.

The acquisitions give SRG a strategic edge in a market where capacity constraints can drive up scrap premiums. By integrating a high‑efficiency shredder and a seasoned family‑owned operation, SRG can offer tighter feedstock pricing, faster turnaround, and higher recovery rates to downstream steel mills and automotive recyclers. Moreover, the expanded footprint aligns with ESG goals, allowing customers to source recycled metals from a regional hub that reduces transportation emissions. Analysts expect SRG’s scale‑up to attract additional capital and potentially set the stage for further roll‑ups across the Southeast.

Deal Summary

Dallas‑based Southeast Recycling Group (SRG) announced two transactions to expand its metals recycling footprint in the Carolinas. SRG will acquire the assets of NuCycle LLC, including a state‑of‑the‑art shredder, and merge the operations of Morris Scrap Metal Co. into SRG as a new partner, with both deals expected to close by the end of May, bringing SRG’s total locations to seven.