Aceros Announced Acquisition of Florida Shredder and Feeder Scrap Yard

SEATTLE (Scrap Monster): Peru-based electric arc furnace (EAF) steelmaker Aceros Arequipa announced major expansion to its overseas operations through acquisition of two shredder and feeder scrap yards in Florida, USA.

The company press release said that it has entered into a contract towards purchase of an auto shredder yard in Florida, operated by Grimmel Industries. The acquisition contract will also include a second yard located in St.Petersburg, Florida. The acquisitions were made through Acero’s U.S. subsidiaries Aceros America Port Manatee LLC and Aceros America St. Pete LLC.

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The acquired assets comprised two 116,000 m2 yards, a 6,000 HP and 450 RPM shredder,in addition to a magnetic metal separator, which will be used to segregate non-ferrous materials to be exported mainly to Asian countries. The acquisition will ensure supply of recycled steel for its new steel plant in Pisco City. The Florida operations are expected to supply approximately 100,000 tons of ferrous scrap per annum.

Tulio Silgado, General Manager, Aceros Arequipa said that the acquisition further consolidates its expansion and integration of the value chain, thus ensuring raw material supply for steelmaking.

The financial adviser to the transaction was Cobaltum Partners, whereas the Greenberg Traurig firm served as the legal advisor.