SDI Purchases Mexican Ferrous and Nonferrous Scrap Recycler
Metal Recycling News | 2020-03-03 06:21:42
With the acquisition, six scrap processing facilities of Zimmer located throughout central and northern Mexico will be added to SDI’s fold.
By Paul Ploumis
SEATTLE (Scrap Monster): Fort Wayne, Indiana-based Steel Dynamics, Inc. (SDI) entered into a definitive agreement to acquire 100% of the equity interest of Zimmer, S.A. de C.V.- a ferrous and nonferrous scrap recycler in Mexico.
The acquisition is part of the company’s strategy to ensure raw material support to its new Texas flat roll steel mill and will be funded fully with available cash. It will boost supply of prime grades of ferrous scrap from Mexico’s auto and manufacturing hubs to the new SDI mill in Sinton, Texas, the construction of which is in progress and expected to be complete by mid-2021.
With the acquisition, six scrap processing facilities of Zimmer located throughout central and northern Mexico will be added to SDI’s fold. These facilities together ships nearly 500,000 tons of scrap every year and has total processing capacity of approximately 2 million tons per annum, SDI press release noted.
Mark D. Millett, president and chief executive officer at SDI stated that SDI is looking forward to welcoming Zimmer to its family, as it will further solidify the company’s growth strategy for Southwest U.S. and Mexico. The acquisition will provide an expanded commercial presence in the region and a strong platform to further boost its metals recycling presence in Mexico, he added.
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