Big River Steel Reaches New Metallics Procurement Agreement

SEATTLE (Scrap Monster): Osceola, Arkansas-headquartered Big River Steel (BRS) has entered into an agreement with Wichita, Kansas-based Koch Metallics LLC., towards procurement of metallics. As per the agreement Koch will act as an exclusive agent for metallics procurement.

The EAF steelmaker will benefit from Koch’s infrastructure facilities and services including material handling capabilities spread across barge, rail and truck transport. Koch promises to deliver alternatives to the metallics purchases, which is expected to result in significant efficiency gains for BRS. The new partnership is likely to reduce raw material costs and improve earnings.

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Martin Baker, metallics procurement manager, BRS will join Koch as metallics procurement and conversion manager. His joining is expected to boost relationships with domestic and international metallics providers and steel consumers.

Incidentally, BRS is currently in the process of doubling its annual steel production capacity from 1.65 million tons to 3.3 million tons. The $700 million expansion is ahead of schedule by almost two months and is expected to complete before the end of the current year.

Koch Metallic’s parent company, Koch Minerals & Trading LLC., is a major investor in Big River Steel project.