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April 28, 2026

Is High Labor Cost Killing Scrap Profits in Brazil?

Project Background

In Brazil, scrap recycling is strongly influenced by labor structure and logistics costs. Many yards rely on manual sorting and cutting, especially when dealing with oversized scrap from construction and industrial sources.

One of our customers in São Paulo faced a growing issue: labor costs were rising faster than their processing capacity.

Customer Pain Points

Their existing workflow revealed multiple inefficiencies:

  • Manual cutting required multiple workers per shift
  • Large scrap could not be fed directly into existing machines
  • Transport costs increased due to bulky scrap size
  • Processing speed could not match incoming scrap volume
  • Profit margin per ton was shrinking

Even though business volume was increasing, profitability was decreasing.

Our Solution

We introduced the Q43W-4000A Horizontal Container Scrap Shear as a cost-optimization solution.

Key advantages for this customer:

  • Container-style feeding reduced manual handling
  • High cutting force eliminated need for pre-processing
  • Stable operation reduced maintenance interruptions
  • Output size optimized for transport efficiency
  • Lower labor dependency improved cost structure

Results After Installation

After implementation:

  • Labor cost reduced by approximately 40%
  • Scrap processing capacity nearly doubled
  • Transport efficiency improved due to uniform size
  • Downtime decreased significantly
  • Profit margin per ton increased noticeably

The customer highlighted that the biggest change was not just capacity—but control over operating costs.

Key Takeaway

In Brazil, the real challenge is not processing ability—it’s cost control.

A properly selected container shear can:

  • Replace multiple manual operations
  • Reduce labor reliance
  • Improve logistics efficiency
  • Stabilize long-term profitability
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