Acquisition of a Mexican company significantly strengthens Steel Dynamics' strategy for purchasing scrap in the region
US steelmaker Steel Dynamics has completed the acquisition of Monterrey-based Mexican steel processing center ROCA ACERO as part of the company’s raw materials purchasing strategy. Kallanish.Commodities reports about it.
The cost of the deal was not disclosed, but it was financed with the company’s cash.
“The addition of ROCA to the list of our other steel recycling businesses in Mexico greatly strengthens our strategy for purchasing ferrous and non-ferrous scrap in the region. We believe that our processing facilities in Mexico will fully meet the company’s needs for raw materials for steel EAF-production and the planned production of aluminum rolled products,” said Mark Millett, CEO of Steel Dynamics.
The scrap metal processing business consists of five centers located near large sources of industrial scrap metal in Central and Northern Mexico. Currently, ROCA ships about 575 thousand tons of scrap per year.
The total estimated annual scrap processing capacity of Steel Dynamics in Mexico will exceed 2.5 million tons.
Steel Dynamics Inc. is an American steel producer based in Fort Wayne, Indiana. The company’s production capacity reaches 13 million tons of steel per year, which makes it the third largest steel producer in the United States.
As GMK Center reported earlier, US steel enterprises in January-August 2022 increased steel imports by 8.8% compared to the same period in 2021 – up to 21.98 million tons. The amount of finished products in the total volume of steel imports to the USA in January-August 2022 was 17.8 million tons.
The United States is among the ten largest steel producing countries in the world, according to World Steel. In 2021, the USA increased steel production by 18.3% compared to 2020 – up to 86 million tons.