Posted on 17 May 2022
Steel Dynamics Inc. has entered into a definitive agreement to acquire the equity interest of Mexican metals recycler Roca Acero as part of its North American raw materials procurement strategy, SDI said May 16.
Headquartered in Monterrey, Mexico, Roca operates a ferrous and nonferrous scrap business, with its primary operations comprised of four scrap processing facilities throughout Central and Northern Mexico. These facilities currently ship about 575,000 gross tons of scrap/year, with an estimated annual processing capability of about 850,000 gross tons/year, according to SDI.
SDI will fund the transaction with available cash.
The addition of Roca comes as SDI continues to ramp up production at its newest flat-rolled electric arc furnace mill in Sinton, Texas. The Sinton mill has an annual capacity of 3 million st/year.
Securing scrap supply, including acquisitions to make these operations internal, has been of growing focus for US steelmakers in recent years amid the growth of EAF-based steel production.
Source:Platts
