US firm Steel Dynamics has acquired Mexican company Zimmer S.A. The transaction, which was paid for in all cash, will help support the company’s Texas flat roll steel mill, which will begin operations next summer.
Steel Dynamics counts as one of the largest steel producers and metals recyclers in the US, with facilities located throughout the United States, and in Mexico. Meanwhile, Zimmer is headquartered in Monterrey, Mexico, where it operates a ferrous and non-ferrous scrap metals recycling business.
Zimmer’s primary operations are comprised of six scrap processing facilities strategically positioned near high-volume industrial scrap sources located throughout Central and Northern Mexico. The company also operates several third-party scrap processing locations. These combined facilities currently ship approximately 500 000 gross tons of scrap annually and have an estimated annual processing capability of two million gross tons.
‘We sincerely welcome the Zimmer team into the Steel Dynamics family,’ comments Mark Millett, company president and ceo. ‘Combined with our existing metals recycling presence in Mexico, the acquisition of Zimmer expands our commercial presence in the region and strengthens our raw material supply strategy, allowing for cost-effective ferrous scrap procurement for our new Texas flat roll steel mill.’
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