SDI Announced Acquisition of Mexican Metals Recycling Company

SEATTLE (Scrap Monster): Fort Wayne, Indiana-based Steel Dynamics, Inc. (SDI) announced planned acquisition of a Mexican metals recycling company, as part of its North American raw material procurement strategy.

According to company press release, it has entered into a definitive agreement towards acquisition of equity interest in Monterrey, Mexico-headquartered ROCA ACERO S.A. de C.V. The acquisition will be fully funded with available cash. The transaction is subject to customary closing conditions and receipt of necessary regulatory approvals.

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ROCA operates metals recycling business covering ferrous as well as nonferrous scrap metals. The company operates four scrap processing facilities, which are strategically located in proximity to high-volume industrial scrap sources located throughout Central and Northern Mexico. These facilities together accounts for shipment of approximately 575,000 gross tons of scrap every year and have a combined annual processing capacity of around 850,000 gross tons.

Mark D. Millett, Chairman, President and Chief Executive Officer, SDI noted that the addition of ROCA will significantly strengthen its raw material procurement strategy in the region. Upon full integration of ROCA with its existing Mexican metals recycling operations, the company will be able to provide meaningful competitive advantage to its U.S. electric-arc-furnace steel operations, Millett added.