Steel Mills
SDI Acquires Scrap Facilities in Tennessee and Mississippi
Written by Sandy Williams
August 18, 2016
Sims Metal Management announced the sale of its metals recycling facilities in Memphis, Tenn., and Mississippi to Steel Dynamics Inc. No purchase price was disclosed and the transaction was completed August 12, 2016.
Sims Metal Management CEO Galdino Claro said the sale is part of the company’s strategy to divest non-core assets and reallocate capital to key markets.
The Memphis facility has an auto shredding plant and access to barge traffic. Sims lists five Mississippi facilities, with the Greenville yard also having a shredder and river barge access.
“We believe these assets, located in Memphis, Tennessee and throughout Mississippi, are well positioned to support our Columbus Flat Roll Division, as we work towards greater raw material self-sufficiency in the region,” says Russell Rinn, executive vice president of metals recycling for SDI. “We enthusiastically welcome the 90 employees to the Steel Dynamics family.”
A scrap source advised Steel Market Update that the purchase will allow SDI to source scrap from much nearer sources for its Columbus mill. Previously SDI had to buy scrap from Pennsylvania, New York and New England and ship it on major rail lines. Addition of the Sims Metal facilities to its recycling division will save time and cost.
The same scrap source told SMU that this buy could put pressure on the new Big River Steel mill as it comes online later this year and looks for scrap sources for their mill located just outside of Memphis, Tenn., in Arkansas.
SDI acquired the Columbus flat-rolled division from Severstal in September 2014. The facility operates two scrap fed electric arc furnaces capable of producing 3.4 million tons of steel annually.
Sandy Williams
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