Multinational scrap recycler European Metal Recycling (EMR) has sued the City of Camden in New Jersey seeking to overturn a 30-day suspension of the license for its automotive shredding facility following a late-May fire.
The city suspended EMR's junkyard license on 4 June, halting scrap processing and collection at the site until at least 6 July. The suspension followed a fire on 29 May that EMR suspected to have been caused by a lithium-ion battery.
EMR estimated the suspension has already cost about $10mn and is causing non-financial harm including cancellation of scrap purchase agreements, damage to commercial relationships and increased risk to jobs, according to a court filing in New Jersey's Superior Court.
The company claims the city acted unlawfully by exceeding its legal authority, ignoring due process and reversing earlier commitments made to the facility.
EMR entered a memorandum of understanding with the city in April 2025 after a major fire earlier in the year, pledging $6.75mn for upgrades and community projects, installing a $3mn fire-suppression system, reducing its footprint and increasing inspections of inbound material.
The company is asking the court to bar Camden from enforcing the suspension and reinstate its license, or at least temporarily restore the license with proper notice and a hearing.
EMR also says it has not seen objective evidence showing that the recent fire caused harmful off-site impacts or conditions posing an immediate threat to public health or safety, as alleged in the suspension notice.
The company said it aimed to reopen operations by 15 June after implementing preventive measures before filing its lawsuit. It also said it lodged an appeal and hearing request on 11 June and sent a letter on 12 June seeking permission to resume.
EMR hired a third-party firm immediately after the fire to review its facility, fire-suppression system and operational protocols. The company also joined a site walk-through with the New Jersey Department of Environmental Protection.
Following those reviews, EMR outlined operational changes such as completing the fire-suppression system, reducing scrap piles by processing during the first shift, separating and storing bales of light iron from loose material, and creating a new receiving and inspection plan.
The company warned that an extended suspension could affect more than 500 Camden employees, 179 of whom are city residents.
EMR and the City of Camden did not respond to requests for comment.
