Steel Dynamics completes deal for Mexican metals recycling company

Oct. 04, 2022 9:25 AM ETSteel Dynamics, Inc. (STLD)By: Carl Surran, SA News Editor

roll of steel sheet in factory

PhonlamaiPhoto/iStock via Getty Images

Steel Dynamics (NASDAQ:STLD) said Tuesday it completed the acquisition of Mexican metal recycler Roca Acero, as part of its North American raw material procurement strategy; financial terms were not disclosed.

Roca Acero currently ships ~575K gross tons/year of scrap and has an estimated annual processing capability of 850K gross tons; when combined with Steel Dynamics' (STLD) existing Mexican metals recycling business, total estimated ferrous and nonferrous scrap processing capability within Mexico will exceed 2.5M gross tons/year.

"We believe our Mexican metals recycling facilities will provide a meaningful advantage to our electric arc furnace steel operations and planned aluminum flat rolled products operations, while also providing a high-quality, customer-centric option for our customers in Mexico and the United States," Chairman, President and CEO Mark Millett said.

Steel Dynamics (STLD) could benefit from higher steel prices and lower energy costs, Zoltan Ban writes in an analysis published recently on Seeking Alpha.

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