BlueScope Steel To Acquire U.S. Steel Recycling Business

SEATTLE (Scrap Monster): BlueScope announced that it has entered into a binding agreement with MetalX LLC, towards purchase of the latter’s ferrous scrap steel recycling business. It must be noted that MetalX is currently the company’s supplier of scrap steel, accounting for almost one-fifth of the total scrap used by its North Star steelmaking facility in Delta. The acquisition is expected to come to an end before end-December this year.

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According to company press release, BlueScope will pay a sum of $240 million towards acquisition of two recycling facilities of MetalX located in Indiana and Ohio. The transaction, on a cash-free and debt-free basis, includes working capital. The acquired facilities are immediately adjacent to BlueScope’s North Star facility.

Mark Vassella, Managing Director and CEO, BlueScope noted that the U.S. continues to be a key focus for its future growth. The acquisition adds to its extensive U.S. asset footprint of over $3.0 billion. The company looks forward to expansion projects totalling around $1.5 billion, which also includes major expansion to its North Star facility.

The acquisition is expected to enable North Star to have improved quality and quantity of obsolete scrap used by it, Furthermore, it will help in reducing the mix of prime scrap. Moreover, the MetalX ferrous acquisition will significantly enhance BlueScope’s sustainability profile.