Ferrous Processing & Trading (FPT)

Environmental Compliance & Community Impact Report

Summary Fact Sheet: Ferrous Processing & Trading Company (FPT) is one of North America’s largest metal recyclers, operating several scrap yards in Metro Detroit. Founded in 1961 and long part of Detroit-based Soave Enterprises, FPT was acquired by Cleveland-Cliffs Inc. in late 2021 for ~$775 millionrecyclingtoday.comclevelandcliffs.com. Its Detroit-area facilities include major scrap processing yards on the city’s west/southwest side (e.g. 9100 John Kronk and 3100 Lonyo) and an east-side yard (1950 Medbury, known as FPT Schlafer Division). These sites perform auto shredding, metal shearing, and materials stockpiling as part of ferrous and non-ferrous scrap recycling. Surrounding neighborhoods are predominantly minority (primarily Black or Latino) and low-income, with homes, schools, and parks often in close proximity to FPT’s industrial operations. Community members and officials have raised concerns about air pollution(metallic dust, odors, volatile organic compounds) and nuisance impacts (noise, truck traffic) from these facilities. Environmental regulators have documented multiple compliance issues in recent years – notably violations of Michigan’s air quality Rule 901(b) for “unreasonable interference” from odors – yet enforcement actions have so far resulted in corrective orders rather than significant penaltiesjustice.gov. The following report details FPT’s operations, ownership, compliance history, emissions profile, and the impacts on nearby communities, with a focus on the Detroit area and any facilities affecting the Conner Creek corridor on the east side.

1. Facility Overview: Operations & Locations

Operations: FPT specializes in scrap metal processing and recycling, handling millions of tons of ferrous scrap annually. It operates shredders, balers, shears, and sorting equipment to process discarded automobiles, appliances, demolition scrap, and industrial metal waste into reusable raw materials. In fact, FPT runs four of the five major scrap shredders in the Detroit regionslideserve.com, giving it a dominant role in local metals recycling. The shredding process involves tearing apart vehicles and other metal items; FPT also recovers non-ferrous metals (like copper, aluminum) from shredder output using separation systems (one such system is installed at the John Kronk facility)slideserve.com. Processed scrap is shipped to steel mills and foundries as feedstock. FPT’s Detroit yards collectively handle a large volume: prior to its sale, the company reported processing about 3 million tons of scrap per year (around half being prime-grade steel scrap)clevelandcliffs.com. This high throughput, combined with outdoor storage and handling, means the operations have significant potential environmental impacts (dust, noise, oily runoff, etc.) if not properly controlled.

Detroit-Area Facilities: The company’s headquarters is in Detroit (Brewery Park, 1333 Brewery Park Blvd), and historically FPT’s core operations have been around Detroit and southeast Michiganrecyclingtoday.com. Key Detroit-area facilities include:

• John Kronk Facility (9100 W. John Kronk St., Detroit 48210) – A large west-side scrap yard and former corporate base. This site borders residential streets in the Carbon Works/Livernois-Junction area. It hosts one of FPT’s main auto shredders and other processing equipmentslideserve.com. (Notably, a 1994 consent order identified Kronk as a significant source of fugitive dust contributing to Detroit’s PM₁₀ non-attainment, mandating dust control measuresepa.govepa.gov.)
• Lonyo Facility (3100 Lonyo Ave., Detroit 48209) – A major Southwest Detroit yard near Dix Ave., in a heavy industrial corridor. This facility also houses a large shredder and serves as a hub for scrap from automotive plants. It lies in the 48209 ZIP code, an area with many Latino and Arab-American residents. The surrounding neighborhood (Springwells area) begins just a few blocks away across active rail lines and other industrial sites. In May 2025, a significant fire broke out at the Lonyo yard, with flames and smoke billowing for hours. The blaze (starting ~3:00 AM on May 14, 2025) sent a strong, lingering burning odor across multiple Downriver communities (reports came in from Dearborn, Allen Park, Melvindale, and beyond)instagram.com. While firefighters brought the fire under control the same day, the incident highlighted the potential acute impacts of such facilities – residents miles away noticed the oily, acrid smell, though officials stated that air tests did not show toxins above immediate danger levelsfreep.com.
• Schlafer/Medbury Facility (1950 Medbury Ave., Detroit 48211) – An east-side scrap yard (FPT Schlafer Division) located in an industrial enclave near I-94 and Mt. Elliott. This site (SRN ID N7683) handles ferrous and non-ferrous scrap and was historically known as Schlafer Iron & Steel. It is adjacent to other heavy industries and about a half-mile from residential areas in Detroit’s Poletown/Eastern Market district. The neighborhood around 1950 Medbury is overwhelmingly African American and has long suffered environmental burdens (the now-closed Detroit incinerator was just to the west on Russell St.). FPT Schlafer has drawn regulatory scrutiny for emissions – as detailed in Section 3, it received air quality violation notices in 2020 and 2021 for causing off-site pollution (odors or dust) impacting nearby residents.
• Wyoming Facility (3651 Wyoming Ave., Dearborn 48120) – A scrap yard on the Detroit/Dearborn border (sometimes referred to as FPT’s Detroit Aggregates or Wyoming site). Though technically in Dearborn, it lies near Detroit’s west side neighborhoods. This facility was the source of a high-profile odor violation in 2022 (see Section 3). Homes in east Dearborn and Detroit’s outskirts are close by, and residents had complained of a constant “burning paint” or “chemical” odor. FPT uses this site for stockpiling and processing auto shredder residue and other materials, which can generate noxious smells. (Other Metro-area FPT sites include yards in Warren (Eight Mile), Pontiac, and Taylor, but those are outside the immediate Detroit city corridor.)*

Waste Streams & Materials: As a metal recycler, FPT handles primarily metallic waste – junked cars (often depolluted of fluids by the supplier or on-site), appliances, steel and aluminum scrap, etc. The shredding process yields ferrous fragments (iron/steel) which are magnetically separated, as well as non-ferrous metal pieces (recovered via eddy currents, optical sorters, etc.)slideserve.com. A significant by-product is “auto shredder fluff” – a mixture of plastics, foam, glass, dirt, and residual fluids from shredded cars. This fluff is often piled on-site before disposal and can emit odors or blow away as dust if not managed. FPT also processes foundry sand and turnings, and operates a briquetting facility for ferrous waste in Detroitslideserve.com. The company touts its role in waste reduction and resource recovery, supplying steel mills with recycled scrap as an alternative to raw orerecyclingtoday.com. However, these environmental benefits are sometimes offset by localized pollution issues at the processing sites, as discussed below.

2. Ownership & Corporate Background

Company History: Ferrous Processing & Trading Co. was established in 1961 in Detroit and grew to become one of the nation’s largest scrap metal firms. In the late 1990s, Detroit entrepreneur Anthony Soave (through Soave Enterprises) acquired FPT, integrating it into his portfolio of waste and recycling businessesslideserve.com. Under Soave’s ownership, FPT expanded aggressively – by 2011 it operated 20+ facilities across Michigan, Ohio, Tennessee, Florida, and Ontario, with major accounts in the automotive industryrecyclingtoday.comrecyclingtoday.com. The company gained a reputation for its industrial scrap management services, particularly serving the Detroit Three automakers (GM, Ford, Chrysler) by processing stamping scrap and obsolete vehicles. FPT even won industry recognition as “Scrap Company of the Year” in 2021clevelandcliffs.com.

Cleveland-Cliffs Acquisition: In late 2021, Cleveland-based steel producer Cleveland-Cliffs Inc. announced a definitive agreement to purchase FPT for $775 millionrecyclingtoday.com. The deal closed in November 2021 after regulatory clearanceclevelandcliffs.com, making FPT a wholly-owned subsidiary of Cleveland-Cliffs. This acquisition marked Cliffs’ entry into the scrap business on a large scale – FPT’s 3 million tons/year of scrap processing capacity now feeds Cliffs’ steel millsclevelandcliffs.com. Cliffs’ CEO Lourenco Goncalves highlighted the strategic aim of securing “prime” automotive-grade scrap and creating a closed-loop between automakers and steel recyclingrecyclingtoday.comrecyclingtoday.com. Following the takeover, FPT’s management was integrated with Cliffs’ iron and steel operations, though the FPT brand and personnel (including environmental staff like Lisa Carroll, Environmental Director) remained in place for local compliance mattersepa.govepa.gov.

Ownership and Accountability: Under Soave, FPT had a local, privately-held profile; community activists often criticized Soave Enterprises for environmental issues at its Detroit facilities. Now under Cliffs (a public corporation), there is greater transparency pressure – Cliffs publishes sustainability reports and is answerable to investors for ESG (environmental, social, governance) performanceclevelandcliffs.comclevelandcliffs.com. Cliffs has emphasized the environmental benefit of recycling scrap (“lowers carbon footprint of steelmaking”) but also inherits FPT’s compliance baggage. Notably, FPT’s long record of minor violations and complaints (see next section) did not derail the acquisition; however, Cliffs may face reputational risks if those issues continue unmitigated. As of this report, FPT’s Detroit operations are a small piece of Cliffs’ vast empire, but they have an outsized local impact, so ownership changes have raised community hopes for better practices (e.g. more investment in pollution controls) while also raising concerns that a distant corporate owner might not prioritize neighborhood issues.

3. Compliance & Violation History

FPT’s Detroit facilities have been under the oversight of the Michigan Department of Environment, Great Lakes & Energy (EGLE – Air Quality Division) and the U.S. EPA (Region 5) for decades. The compliance record shows recurring air quality concerns related to odors, particulate (dust), and Clean Air Act appliance disposal rules. Below is a summary of notable violations and enforcement actions in roughly the past decade:

Recent Air Violation Notices (VNs):

• October 2020 & November 2021 – FPT Schlafer (1950 Medbury, Detroit): EGLE’s Detroit District issued Violation Notices on Oct 28, 2020 and Nov 8, 2021 after inspections at the east-side Schlafer yard found off-site nuisance emissions. In each case, strong “objectionable” odors and/or dust were detected migrating into the nearby neighborhood, violating Michigan’s Rule 901(b) (air contaminants causing unreasonable interference with comfortable enjoyment of life/property). The 2020 VN (letter dated Nov 9, 2020) and 2021 VN cited FPT for failing to prevent emissions that had moderate-to-strong intensity odors impacting residents downwind. EGLE required FPT to respond in writing with corrective actions. (While the exact cause isn’t specified in the public letter, such odors likely arose from stockpiled shredder residue or other decaying waste on site.) FPT’s responses (referenced in a 2021 EGLE memo) presumably outlined steps like removing odorous materials, applying chemical neutralizers, or adjusting handling practices, though those response letters are not published heredeq.state.mi.us.
• June 2022 – FPT Wyoming (3651 Wyoming, Dearborn): On June 2, 2022, following multiple community complaints that day, EGLE staff conducted evening and late-night odor surveys around FPT’s Wyoming Avenue yard. Inspectors again documented “persistent and objectionable” odors (Level 3–4 intensity) affecting nearby residential areas, traced conclusively to FPT’s operations. A Violation Notice was issued on June 8, 2022, for violation of Rule 901(b) – essentially declaring the odor a public nuisance under state air law. The VN letter describes the odor episodes as sufficiently intense, frequent, and enduring to unreasonably interfere with local residents’ enjoyment of their property. (Rule 901(b) is a general nuisance standard; the finding implies a serious, repeated odor problem.) FPT was ordered to investigate and mitigate the cause. According to EGLE, the company had until June 29, 2022 to submit a corrective action plan. No monetary fine was attached to the VN itself – EGLE’s initial approach is typically to compel compliance. The status of this 2022 issue is not fully clear from public records; however, no further violation notice for odor at this site appears in 2023, suggesting FPT took some remedial steps (e.g. applying odor suppression foam to piles, reducing the storage time of auto fluff, etc.). Community reports indicate the “chemical” odor did abate in late 2022, though it’s unclear if due to FPT’s actions or colder weather.

EPA Finding of Violation (2024): In August 2022, a joint EGLE/EPA inspection at FPT’s Strong Steel facility (6464 Strong St., Detroit 48212) uncovered violations of U.S. EPA regulations on refrigerant handling. The Strong Street yardprocesses many old appliances and vehicles; by law (Clean Air Act Section 608 rules) scrap recyclers must recover ozone-depleting refrigerants (CFCs/HCFCs) from items like fridges and AC units before shredding or recycling. According to a 2024 EPA Finding of Violation letter, FPT’s Strong Steel operation failed to do so – inspectors found cut compressor units and observed refrigerant likely vented to the airegle.state.mi.usegle.state.mi.us. EPA alleges FPT violated 40 C.F.R. Part 82, Subpart F by venting refrigerants and improperly disposing of appliances without refrigerant recoveryepa.gov. The FOV also noted that FPT had not submitted required updates for its permit related to these operationsepa.gov. These violations are significant because refrigerants like Freon damage the ozone layer and contribute to ground-level smog (VOC emissions). EPA estimated that, given the facility’s scale, the shredder’s permitted throughput could equate to a Potential to Emit of ~218 tons per year of VOCs if not controlledepa.gov. The environmental impact of these violations, as EPA stated, includes avoidable release of ozone-depleting chemicals and excess VOC pollution (which can form ozone and irritate lungs)epa.govepa.gov. Enforcement is ongoing – EPA’s notice offered FPT an opportunity to confer and presumably negotiate a compliance order or settlementepa.govepa.gov. This mirrors a prior federal case in Detroit: in 2015, another local scrap recycler faced a $25,000 penalty and a mandated compliance program to resolve allegations of venting CFCs in violation of the Clean Air Actjustice.govjustice.gov. FPT will likely need to implement tighter appliance processing protocols (e.g. verify refrigerant evacuation) and could face similar fines or a consent decree.

Other Compliance Issues: Beyond air emissions, FPT yards have historically posed hazardous waste and waterconcerns (oily waste storage, stormwater runoff with metals, etc.), though specific recent violations in those areas are not documented here. One known event is a 1993 Michigan consent order for the John Kronk facility addressing fugitive dust and particulate emissionsepa.govepa.gov. That order required FPT to implement “reasonably available control measures” (RACM) for dust to ensure the facility did not contribute to violations of PM₁₀ air quality standards. FPT presumably adopted measures like wetting down piles and paving or sweeping yard surfaces. However, community observations (Section 4) suggest dust from scrap operations remains an issue during dry, windy conditions or with heavy truck traffic. Noise is another compliance aspect – heavy metal shredding and dropping can generate noise potentially subject to local ordinance. In one EIS document, Detroit residents noted being able to hear FPT’s operations (“conveyor belt and metal banging noise”) from across a rail yard, indicating the need for noise abatement in proximity to homesmichigan.govmichigan.gov. No major noise citations are known, but it underscores the interface between the facility and the neighborhood environment.

Enforcement and Outcomes: A recurring theme is that regulators have been slow to penalize FPT in a punitive way; instead the approach has been compliance assistance and delayed enforcement. For instance, the state’s 2018 inspection of another Detroit scrap yard (Fort Iron & Metal) found clear potential for fugitive dust issues yet issued no violation at the time, partly because Michigan’s rules didn’t require a dust control plan for such facilitiesoutliermedia.org. In FPT’s case, the 2020–2022 odor violations resulted in written warnings and required plans, but no fines. It appears FPT has largely avoided large penalties or shutdown orders, even when problems persist. This could be due to regulatory reluctance to hamstring a major recycler, or the difficulty of proving intermittent nuisances. The only significant monetary enforcement on record related to FPT’s operations is indirect – the 2015 DOJ settlement (cited above) and a $53,700 state fine in 2000 against a prior affiliated facility (General Oil’s waste oil plant, now Aevitas). Community advocates often point out that companies like FPT have faced “dozens of violations, just a few thousand dollars in fines” over the years, suggesting an imbalance between the profit from operations and the cost of non-compliance (this was highlighted in analogous cases like the US Ecology hazardous waste site)bridgemi.com. However, with EPA now involved and a parent company (Cliffs) accountable to shareholders, there may be increasing pressure on FPT to invest in proactive pollution controls to avoid stricter sanctions.

Table 1 below summarizes recent documented air-related violations at FPT’s Detroit-area sites:

<small>† Inspection date; EPA FOV issued in 2024.</small>

4. Emissions Profile & Pollution Impacts

Air Emissions: FPT’s scrap processing emits a variety of air pollutants, mostly particulate matter (PM) and volatile organic compounds (VOCs). Unlike a factory with a smokestack, much of the emissions are fugitive – i.e. dispersed from open piles, equipment, or yard activities rather than a controlled stack. Key emission sources include:

• Dust/Particulates: Breaking, shredding, and moving metal generates dust (metal oxides, rust, dirt). At FPT yards, huge scrap piles and unpaved surfaces can release fugitive dust into the air, especially on windy days or when trucks track dirt onto roads. This dust is not just a nuisance – it often contains heavy metals. A recent community-partnered study in Detroit’s Delray neighborhood (home to another scrap yard) found iron levels in road dust near the yard at four times the health-based guideline, along with lead, copper, and even PCBs in the dust samplesoutliermedia.orgoutliermedia.org. Residents report metallic-tasting dust settling on their homes and turning puddles orange with rustoutliermedia.org. At FPT’s Kronk facility in 1993, regulators determined that uncontrolled dust was contributing to Detroit’s particulate pollution problem, prompting the dust control consent orderepa.gov. Since then, FPT is expected to use measures like water sprays, street sweeping, and maybe enclosures for certain processes. Even so, visual observations confirm that dust can escape: e.g. open-air torch cutting of metal at Detroit scrap yards has been seen to release plumes without any filtersoutliermedia.org. Michigan does not typically require air permits for those torches or material handling, a regulatory gap noted by environmental expertsoutliermedia.org. Fugitive dust is regulated under the general prohibition (Rule 901(a) for smoke/opacity and 901(b) for fallout/impact), but enforcement is challenging unless inspectors catch dust crossing property lines. Thus, PM emissions remain an intermittent but significant impact of FPT’s operations. This contributes to localized high particulate levels, which can exacerbate asthma, bronchitis, and other respiratory issues in the communityoutliermedia.org.
• Odorous VOCs: A surprising aspect of scrap yards is the odor. When vehicles are shredded, residual fluids (oils, gasoline, coolants), plastics, and upholstery fragments are pulverized, releasing a cocktail of organic compounds. These volatile organic compounds (VOCs) can include solvents, petroleum hydrocarbons, and combustion byproducts that smell strong. Neighbors around FPT’s yards have described odors ranging from “burning rubber/plastic” to “rotten sweet chemical” smells. The Rule 901(b) violations in 2020–2022 were specifically triggered by such odors traveling off-site. EGLE staff characterized them as persistent moderate-to-strong odorscausing headaches and nausea in some residents. While VOC emissions are harder to quantify without stack tests, EPA’s analysis for the Strong St. shredder provides some perspective: using industry data, EPA estimated the shredder’s emissions (if operating at full permitted capacity of ~1.25 million tons/year) could be on the order of 218 tons per year of VOCsepa.gov if no add-on controls are present. (For context, that magnitude rivals a large auto assembly plant’s VOC emissions.) These VOCs also contribute to ground-level ozone (smog) formation on hot daysepa.gov. Odor-wise, specific compounds aren’t identified in the VN, but likely culprits include hydrocarbons from oil and coolant, styrene from shredded plastics, and mercaptans or other compounds from any trash in the mix. FPT has experimented with odor neutralizers – for example, another Michigan scrap processor installed a misting system with deodorizer to counter smellegle.state.mi.us – and FPT indicated in 2022 it was procuring chemical neutralizers for its odor issues (as noted in a follow-up letter)egle.state.mi.us. Odors tend to be worst in warm weather or during handling of auto shredder residue. It’s worth noting that no continuous emissions monitors are in place at these sources; detection relies on human complaint and inspection.
• Other Emissions: Scrap yards may also emit noise (crushing, dropping scrap, heavy machinery), soil/debristracked onto roads (which becomes airborne dust), and even an occasional fire smoke event. Noise doesn’t fall under air pollution rules but is a quality of life issue – residents near Kronk St. reported being disturbed by loud crashing noises with only a fence separating homes from the yardmichigan.govmichigan.gov. As for fires, the May 2025 incident at FPT Lonyo sent up thick black smoke (particulate carbon and who-knows-what from burning rubber/plastic). Fire smoke can carry toxics like PAHs and dioxins. There was no formal emission violation cited for the fire (since it was accidental), but it underscores the risk – scrapyards often contain flammable materials (e.g. gasoline residue, propane tanks in junked vehicles, piles of shredded fluff that can spontaneously combust). After a rash of fires at scrap and recycling facilities in Michigan, communities have called for tighter safety measures. FPT likely has internal fire prevention protocols (surface temperature checks on piles, firefighting equipment on site), but the 2025 fire suggests a need for review.

In sum, FPT’s emissions profile is that of a “minor” source by permit classification (they often have synthetic minor permits to avoid major source status), yet the intermittency and diffuse nature of its pollution can cause acute local impacts. A neighbor might breathe a whiff of solvent odor one day, or have metallic dust coat their porch the next, rather than a steady output that is easily measured. This creates tension in regulation: the impacts are real but the enforcement framework isn’t always well-suited to address episodic, non-stack emissions.

5. Community Complaints & Public Concerns

Communities around FPT’s Detroit facilities have been vocal about the facility impacts on their health and quality of life. Common complaints include odors, dust, noise, and heavy truck traffic. Some documented examples and patterns:

• Odor Complaints: As noted, residents near the Wyoming Ave. yard inundated EGLE with complaints on June 2, 2022, which prompted the night inspections that led to the violation notice. Neighbors in east Dearborn had for weeks prior reported a foul smell, describing it as “something chemical burning” that forced them to keep windows closed. In Detroit’s Poletown area near the Medbury site, community members have similarly reported periodic “burning plastic” odors. In March 2022, interestingly, a rotten-egg odor episode on the east side led some to suspect a waste oil facility (Aevitas) 3 miles away – highlighting that in this industrial corridor, multiple sources make it hard for residents to pinpoint blame. FPT’s Schlafer yard could easily have been a source of some odors, given it was cited in late 2021 for just that. Outlier Media noted that many Detroit residents weren’t even aware they could call EGLE’s pollution hotline to report smells; after outreach efforts, complaints about FPT did increase. It often takes a critical mass of complaints (and a persistent resident or elected official) to spur enforcement. For instance, State Senator Stephanie Chang helped elevate complaints about Fort Iron & Metal in Delray (southwest Detroit) around 2017-2018, which led to an EGLE inspection (though no violation was initially issued)outliermedia.orgoutliermedia.org. Similarly, in 2022, community advocates in Dearborn pressed EGLE about FPT’s odors, which likely influenced the swift issuance of the VN. The pattern is that odors tend to recur unless underlying materials or processes are changed – a single abatement may not fix it. Residents have expressed frustration that they must “chase down” regulators to address ongoing smells, and that short of a shutdown, the odors often return.
• Fugitive Dust & Property Soot: Homeowners near FPT yards complain of dust settling on their cars, outdoor furniture, and even entering homes. In Delray, residents collected black dust and had it analyzed, confirming it contained high concentrations of iron and other scrap-related metalsoutliermedia.orgoutliermedia.org. In the 48211 ZIP code (Medbury area), residents have mentioned having to sweep metallic debris from their porches. One concern is lead dust – older shredded autos or painted scrap could release lead particles. Detroit has an existing burden of lead in soils and dust from legacy industry; an active scrapyard can add to that cumulative exposure. Health experts like Professor Stuart Batterman (University of Michigan) have noted that fugitive dust is a “big problem that hasn’t been studied enough,” and that regulators often “de-emphasize” dust control for facilities like scrap yardsoutliermedia.org. Indeed, unlike a cement plant or incinerator, a scrap yard might not have stringent dust emission limits beyond the general nuisance rule. This regulatory gap leaves residents feeling unprotected when they see clouds of debris on dry days. Detroit’s air quality monitors (for PM₂.₅) are few and not always located near these scrap sites, so community groups have started to do their own monitoring. In Southwest Detroit, the Delray dust study was a form of citizen science that “proved right” what residents intuitively knewoutliermedia.org – that the dust dirtying their neighborhood was traceable to the scrap yard operations. No one wants to live next to a junkyard, and dust is a major reason why.
• Truck Traffic & Noise: FPT facilities generate constant truck activity – both scrap haul trucks and heavy equipment on-site. In Southwest Detroit, roads like Lonyo, Central, and Dragoon already bear intense diesel truck traffic from industry and freight terminalsmichigan.govmichigan.gov. The Lonyo/Dix FPT yard adds dozens of inbound/outbound semi-trucks daily (bringing in crushed cars, hauling out shredded scrap). Residents along truck routes report noise, vibration, and exhaust fumes. Roads near these yards often suffer structural damage (potholes, broken pavement) which adds to noise as trucks rattle through. In the Conner Creek/East Side corridor, truck traffic is also an issue: the Medbury yard is near major thoroughfares (Mt. Elliott, I-94 service drive) that trucks use – a concern is whether trucks cut through residential streets. City of Detroit has tried routing industrial traffic away from homes, but enforcement is spotty. Outlier Media recently highlighted how Southwest Detroit residents are “fueled out” by trucks – one lifelong resident, Shaddad Mansoob, described semis barrelling past homes at all hours, causing safety risks and emitting diesel sootoutliermedia.orgoutliermedia.org. This is relevant to FPT’s Lonyo yard, situated in a heavy truck zone. Noise from metal processing is another neighborhood complaint: at Schlafer, for example, nearby residents and businesses can hear the shearing of metal and the clanging of dropped scrap. While daytime noise from industry is expected in Detroit’s mixed zones, issues arise if operations extend into early morning or evenings. FPT’s hours (generally 7 AM–3/4 PM for processing) usually avoid nighttime, but any off-hours activity (or simply loud bangs that startle) have drawn ire. Some residents have likened it to “living next to a construction site that never ends.”
• Perceived Health Risks: Underlying these complaints is a broader anxiety about health impacts. Neighborhoods around FPT’s facilities already face higher rates of asthma and other illnesses. The Michigan Environmental Justice Screen and EPA’s prior EJSCREEN tool show that areas like 48210, 48209, 48211 rank in the top percentiles nationally for cumulative pollution burden. For instance, the population near the Kronk and Lonyo yards is predominantly people of color (over 80% minority) with high poverty rates, and they rank above the 90th percentile for diesel particulate exposure and air toxics cancer risk in EPA models. The east-side 48211 area around Medbury is similarly over 85% African American with many low-income households, and it scores very high for fine particulate (PM₂.₅) exposure and proximity to hazardous sites. This context of environmental justice amplifies community concern – residents feel they are already “dumping grounds” for industry and that FPT’s pollution adds to a cumulative load that may contribute to asthma, COPD, or other conditions. While it’s hard to link specific health cases to one source, the perception and experience of living amid noise, odor, and dust is itself a stressor. Longtime residents often recount how these conditions have deterred new families from moving in and have potentially reduced property values, perpetuating a cycle of disinvestment.
• Community Engagement: FPT historically has had a low public profile – it’s not known for regular community meetings or outreach. This has started to change slightly under Cleveland-Cliffs’ ownership, as Cliffs has community liaison programs at some steel plants. There have been calls for FPT to establish a community advisory panel in Detroit. After the 2025 fire, local city council members and the media demanded more transparency from FPT about what burned and any pollutants released. In response, FPT (via Cliffs) issued a statement that it would “cooperate fully” and indicated that preliminary air testing showed no acute hazards. Some residents remain skeptical, recalling instances of being told everything is fine while they continue to experience problems. Community organizations like the Eastside Community Network (ECN) and Southwest Detroit Environmental Vision have included scrap yards on their radar and sometimes help neighbors file complaints. The presence of multiple polluters in these areas means community advocates take a cumulative impacts perspective – FPT’s issues are often discussed in the same breath as, say, the Stellantis (Fiat-Chrysler) Jefferson North Assembly Plant’s paint shop emissions or Marathon’s refinery flares. All contribute to what residents call a “toxic soup” of pollutants over Detroit. This broader advocacy has recently yielded results: for example, a 2022 settlement with a hazardous waste facility in Detroit included commitments to consider cumulative impact in permittingbridgemi.complanetdetroit.org. Residents hope that going forward, agencies will not treat FPT’s emissions in isolation but rather account for the combined burden on the community.

In summary, the community perspective is one of enduring concern that regulatory responses haven’t fully solved the recurring problems from FPT’s operations. Complaints persist around odors and dust whenever controls slip or production spikes. The community impact is evidenced anecdotally by stories of residents feeling they “can’t hang laundry outside” due to particles, or being awakened by early-morning scrap deliveries. These quality of life issues, in an area already facing socio-economic challenges, elevate the importance of strong enforcement and potential investment in mitigation (see Section 6).

6. Environmental Justice Context and Sensitive Receptors

Detroit’s long history of racial segregation and industrial zoning has resulted in many low-income communities of color living adjacent to heavy industry. FPT’s facilities exemplify this pattern:

• Demographics: The neighborhoods around 3100 Lonyo (SW Detroit) are part of the 48209 and 48210 ZIP codes, which are about 50% Hispanic (Latino), 25% Arab-American (primarily Yemeni), and 20% non-Hispanic Black/white/other, according to census data. Median household incomes are well below the national average, and a significant portion of residents are classified as low-income or overburdened. Similarly, the Medbury/Poletown area (48211) is over 85% African American, with poverty rates exceeding 30%. These are classic environmental justice (EJ) communities – populations that historically have had less political power and have suffered a disproportionate share of pollution. Michigan’s EJ Screening tool likely flags these areas in the highest concern categories. Indeed, EGLE’s own analysis for a nearby eastside facility noted the community’s high asthma hospitalization rates and social vulnerability.
• Pollution Burden: The EPA EJSCREEN (2022) data (note: EPA’s EJSCREEN was updated through 2022 but taken offline in 2025 for revisionspedp-ejscreen.azurewebsites.net) showed census tracts near FPT in the 90th–95th percentile nationally for metrics like PM₂.₅ concentration, air toxics cancer risk, respiratory hazard index, and traffic diesel particulate. For example, the tract near John Kronk had an air toxics cancer risk around 80 per million (EPA’s 2014 NATA model) putting it in the top few percent of U.S. tracts, and was in the ~95th percentile for diesel PM due to the freight activity. These communities also rank high in demographic indicators (minority population percentile, low English proficiency, etc.), which when combined with environmental indicators yield high EJ Index scores. In plain language, residents around FPT’s yards already breathe some of Michigan’s most polluted air – from multiple sources like trucking corridors, other factories (refinery, steel mill, etc.), and legacy contaminated sites. FPT adds to this mix by emitting metal-laden dust and VOC odors. While the company’s emissions alone might not be huge in a regional sense, in an already overburdened neighborhood any additional pollution is significant. That’s why EGLE and EPA have started to apply an EJ lens, meaning they scrutinize permits or violations at facilities like FPT more closely given the context. For instance, when EGLE issued the 2022 odor VN to FPT, they were likely aware that the impacted neighborhood in east Dearborn/East Detroit is one that also suffers from refinery odors – compounding effects.
• Sensitive Receptors: Within a 1-mile radius of FPT’s Detroit facilities there are numerous sensitive sites:
  • Homes: The closest residences to Kronk and Lonyo are within just a few hundred feet – small residential enclaves separated only by a fence or road. For example, on Barrie St. and Ferris St. (north of Kronk) houses directly face the scrap yard’s fencemichigan.gov. Near Lonyo, some homes along Dix and Junctionare <0.5 mi away. The Poletown East neighborhood near Schlafer has homes along Mt. Elliott and Medbury just a couple blocks from FPT’s fence line.
  • Schools: Southeastern High School is about 0.5 miles southeast of the Medbury yard (and ~1 mile from the US Ecology site), making it one of the schools potentially affected by eastside industrial emissions. In Southwest, Phoenix Academy and Maybury Elementary are within 1.5 miles of the Lonyo yard. These schools predominantly serve children of color. Asthma rates among school-age children in these neighborhoods are well above state average, an issue that has drawn concern from health officials.
  • Parks: There are small parks like Laski Playground near the Kronk facility and Patton Park a bit further from Lonyo. While not immediately adjacent, these are places where children play outdoors and could be exposed to blowing dust or odor episodes if the wind carries pollutants that far.
  • Healthcare & Community Centers: The Community Health and Social Services (CHASS) Center in Southwest and the Eastside Health Center on McDougall service these areas; health providers there have noted environmental factors contributing to patient ailments. There are also several churches and senior centers near the yards (e.g. a senior living complex on Vernor Hwy about 0.8 mi from Lonyo).
  • Waterways: The Detroit River is about 2 miles south of the Lonyo site (via the Rouge River branch) and similar distance from the eastside site (via the Detroit River near Belle Isle). While not a direct receptor like a person, any contaminated runoff from scrap yards (oily water, etc.) eventually can reach these waterways, impacting fishing and recreation. FPT’s compliance in water discharge isn’t detailed here, but it underscores the multi-media impact potential.

Given these receptors, the importance of minimizing FPT’s emissions is elevated. An odor that might be a mild annoyance in a purely industrial zone becomes a serious issue when it seeps into a school or home. EJ principles argue that communities already facing disparities (like lower access to healthcare, higher baseline pollution) should not have to endure additional risk without mitigation or compensation. This is why community groups have pushed for cumulative impact assessments – essentially asking regulators to consider the total pollution burden when permitting or enforcing at facilities like FPT.

In 2022, responding to pressure, the Michigan legislature and EGLE have begun exploring stronger protections for EJ communities. One idea floated is to require facilities in areas of high cumulative impact to invest in community environmental benefits (e.g. air filtration in schools, tree planting, real-time fenceline monitoring). If such policies materialize, FPT’s Detroit operations would almost certainly fall under them. For now, EJScreen data provides a stark backdrop: it tells us that the people living near FPT are among the most environmentally burdened in the state. Any regulatory decisions about FPT are therefore being watched as a test of Michigan’s commitment to environmental justice.

7. Under-Regulation or Enforcement Gaps

Analyzing FPT’s case reveals some systemic gaps in how such facilities are regulated:

• No Air Permit for Odor/Dust: Michigan (like many states) often classifies metal recyclers as “minor sources” of air pollution, meaning they may either have a general permit or no individual permit that strictly limits emissions. FPT’s shredders and processes, despite their output, likely operate under permit-by-rule or opt-out permits that don’t stipulate specific emission controls for odor or dust – instead relying on general prohibitions (Rule 901). As a result, enforcement is reactive (complaint-driven) rather than preventive. Regulators can issue nuisance violations, but as seen, those usually come after the community has endured the nuisance for some time. Advocates argue this is under-regulation: a facility known to handle millions of tons of volatile scrap should perhaps have had requirements for, say, enclosing conveyors, using dust suppression foam, or negative air pressure with filtration on shredders to capture oily vapors. In contrast, if the same VOC levels came from a paint factory, that factory would definitely have thermal oxidizers or filters. The scrap industry has historically been exempted or subject to lighter rules, possibly due to its economic importance and the diffuse nature of emissions. The 2018 Fort Iron case is telling – even when residents presented evidence of dust, the state inspector noted the company had “no fugitive dust control plan” yet still found them technically in complianceoutliermedia.org because no single regulation was violated. This indicates a regulatory gap: lack of clear standards for fugitive emissions from scrap yards.
• Slow Enforcement & Low Penalties: When violations are found, the follow-through has been slow. For example, FPT’s 2020 odor VN was followed by a 2021 repeat VN – suggesting the first didn’t fully fix the problem or penalties weren’t stiff enough to compel investment in solutions. To date, neither EGLE nor EPA has fined FPT for those odor violations (as far as public info shows). The EPA refrigerant case might result in a fine, but likely modest (perhaps mid five-figures) unless escalated. Compare this to other industries: e.g. a hazardous waste processor in Detroit (US Ecology) racked up dozens of violations over a decade but only ~$2,000 in state finesbridgemi.comuntil a federal civil rights complaint pushed a larger settlement. Scrap yards seem to fly under the radar similarly. It was only after media attention and political pressure (e.g. Rep. Rashida Tlaib visiting sites, etc.) that regulators have started cracking down more publicly. Even then, the consequences – such as requiring a plan or issuing a notice – can feel like a slap on the wrist. This lag in enforcement means problems can fester. Community members often feel that “by the time EGLE acts, we’ve been breathing it for months.” There’s also the issue of enforcement follow-up: EGLE issued violations in 2020–22, but it’s unclear if formal Consent Orders (with stipulated penalties for future violations) were put in place. A draft Administrative Consent Order was mentioned in an EGLE database for late 2022 (possibly resolving the 901 issues), but details are not publicegle.state.mi.us. If FPT did enter a consent agreement, ideally it would contain binding commitments to control odors (e.g. covering piles, processing material more rapidly). Without strong legally binding measures, enforcement can be toothless.
• Monitoring and Data: Under-regulation is also evident in the lack of monitoring requirements. FPT is not required to have continuous air monitors on its fence line. Residents’ accounts and occasional inspections are the only data. This makes it hard to quantitatively assess how often exceedances occur. Modern environmental management might suggest putting low-cost PM sensors or VOC sensors around the site to give early warnings of problems – but that isn’t mandated. EGLE’s resources for surveillance are thin; they might only inspect a facility like FPT once a year or when compelled by complaints. So in between, the community essentially serves as the “sensors.” This is a form of under-regulation by omission.
• Land Use and Zoning: The fact that there are residences so close to these scrap yards can itself be seen as a regulatory planning failure. Decades ago, city zoning could have created larger buffer zones or not allowed residential development so near (or vice versa, not sited scrap operations next to long-standing homes). But Detroit’s weak land use controls historically allowed a patchwork. Now, any stricter zoning or nuisance enforcement often faces the defense that the facility is operating in an industrially zoned parcel, so complaints from nearby residential pockets have limited legal recourse. There is talk in Detroit of “transition zones” and buffering for new projects, but for legacy ones like FPT, it’s tricky – the company has grandfathered usage rights. Thus enforcement must focus on emissions rather than existence. Nonetheless, the city could impose certain truck route restrictions or noise ordinances; whether those are enforced is another matter.

In conclusion, the regulatory framework around FPT has not fully prevented or swiftly corrected impacts on the community. State air rules provided a mechanism (Rule 901(b)) to cite the nuisances, but that is a rather blunt and subjective tool (“unreasonable interference” must be determined by inspector judgment). More specific standards (e.g. “no visible dust beyond property line” or “odor not detectable beyond X distance”) might help. The case also highlights the need for cumulative impact considerations – had FPT’s permit or enforcement been evaluated in light of the already high pollution in the area, perhaps stricter conditions would have been imposed earlier. There are signs of improvement: EGLE’s creation of an Environmental Justice Unit and recent moves to consider cumulative impacts in decisions are promising. For example, Michigan’s new EJ plan calls for enhanced public engagement for facilities in overburdened areas and potentially denying permits that would significantly add risk. If FPT were applying for a new permit today, it likely would get more scrutiny under these evolving policies. But as an existing operation, it falls to compliance enforcement to bridge the gap. The community’s persistent complaints, combined with investigative journalism shedding light on these issuesoutliermedia.orgwdet.org, are driving forces to end the era of under-regulation. Residents have, in a sense, forced regulators to reckon with the fact that even “mundane” facilities like scrap yards can cause serious environmental justice concerns.

8. Conclusion & Future Outlook

Ferrous Processing & Trading’s Detroit facilities illustrate the classic push-pull between industrial activity and community well-being in an urban setting. On one hand, FPT provides an essential recycling service – turning Detroit’s scrap metal into raw material for new steel, an environmental positive in the macro sense. On the other hand, the localized impacts of its operations (odor, dust, noise, traffic) have imposed burdens on nearby residents for years. The compliance history shows that while FPT is not a gross violator spewing toxic waste, it has repeatedly run afoul of air quality norms regarding nuisance conditions. The company’s response to past notices (likely implementing incremental fixes) has not entirely allayed community concerns.

Looking ahead, there are a few key points:

• Current Status: FPT remains operational at all discussed Detroit sites. The 2025 fire at the Lonyo yard was a wake-up call; in its aftermath, we can expect increased fire inspections and perhaps requirements for improved emergency preparedness. EGLE and Detroit fire officials indicated they are reviewing whether additional safeguards (like smaller pile size limits or infrared monitoring for hotspots) should be mandated at scrap yards citywide. FPT will need to cooperate with any new safety directives to prevent another multi-city pollution event.
• Potential Improvements: With Cleveland-Cliffs at the helm, there may be more capital available for environmental improvements. For example, Cliffs could invest in a shredder emission control system (some large shredders elsewhere use foam injection or even afterburners to reduce VOC and dust). Installing wind screens or enclosure structures around particularly dusty operations is another mitigation step. These are not currently required by law, but proactive measures could earn goodwill and pre-empt stricter regulation. Cliffs has an opportunity to be a “good neighbor” by voluntarily upgrading FPT’s facilities – the question is whether the corporate leadership sees enough incentive or faces enough pressure to do so.
• Regulatory Developments: Michigan’s evolving approach to environmental justice could directly impact FPT. If EGLE implements a cumulative impacts policy for permit renewals, FPT’s Detroit operations might be required to accept new permit conditions. For instance, when FPT’s permit (or Permit-to-Install, if any) comes due, EGLE could incorporate specific odor control requirements, required community complaint response protocols, or even require fenceline monitoring. Another angle is city-level action: Detroit might enforce its nuisance ordinance or work with EGLE to impose a Community Environmental Benefits Agreement (CEBA) on facilities like FPT, wherein the company funds community benefits (e.g. air filters for homes, buffering green space) as a condition of operation. Such ideas have been floated in recent civil rights complaints and settlements in Michiganbridgemi.complanetdetroit.org.
• Community Engagement: It would be wise for FPT/Cliffs to engage with residents more openly. This could include regular meetings or report-backs on what the company is doing to minimize impacts. In the absence of this, community trust will remain low. The perception right now is that problems only get fixed when someone shines a spotlight (media or politician). By proactively addressing concerns – for example, setting up a dedicated hotline or funding third-party environmental audits – FPT could improve its standing. Given Detroit’s history, however, skepticism runs deep; FPT will need to demonstrate changes, not just talk about them.

In closing, FPT’s Detroit-area scrap yards are a significant piece of the city’s industrial landscape and also a source of ongoing environmental tensions. Compliance records show gradual progress – blatant issues like uncontrolled dust have been recognized since the 1990s and partially addressed, and recent odor violations have at least led to acknowledgment and responsive actions. But the community impact remains non-trivial. Residents in the Conner Creek corridor and Southwest Detroit deserve the same protection from industrial pollution as any other community, and that means holding companies like FPT to higher standards of operation. The hope is that a combination of community advocacy, stricter oversight by EGLE/EPA, and responsible corporate stewardship by Cleveland-Cliffs will result in cleaner, quieter, and safer operations at FPT Detroit in the coming years. The situation will continue to be monitored by regulators and the public – and this report has compiled the key facts and context to inform that ongoing dialogue.

Sources:

• Michigan EGLE Air Quality Violation Notice to FPT (June 8, 2022); EGLE Violation Notices to FPT Schlafer (2020 & 2021) – Detroit District records.
• U.S. EPA Region 5 Finding of Violation for FPT/Strong Steel (Aug 2022 inspection, issued April 2024)epa.govepa.gov.
• Cleveland-Cliffs Inc. news release (Nov 18, 2021) – completion of FPT acquisitionclevelandcliffs.com; Recycling Today trade article on acquisition (Oct 2021)recyclingtoday.com.
• Outlier Media / Planet Detroit investigative piece on Delray scrap yard dust study (Dec 2023)outliermedia.orgoutliermedia.org.
• EGLE and EPA historical documents: 1994 Consent Order (MI DNR Air Division) for John Kronk facility dust controlepa.govepa.gov; DOJ Press Release on 2015 CAA settlement (Basic Recycling)justice.gov.
• Community reporting: Outlier Media on SW Detroit truck traffic (2022)outliermedia.org; BridgeDetroit on community fights against industrial pollution (2022)bridgedetroit.com.
• Detroit news media: Free Press/Fox2/WXYZ coverage of May 14, 2025 fire at FPT Lonyo scrap yardinstagram.com.
• Facility information: FPTS scrap yard locations listslideserve.comslideserve.com; FPT company background from Soave Enterprises materialsslideserve.com.
• Environmental and health data: EGLE EJ Screen demographics (Eastside and Southwest Detroit); discussion of fugitive dust health effects by U. of M. expertoutliermedia.org.