Steel Mills

SDI Acquires Mexican Scrap Recycler

August 4, 2020

Steel Dynamics, Inc. has completed its acquisition of Zimmer, a Mexican scrap recycler, as part of its raw material procurement strategy to support the new flat rolled mill it is building in Sinton, Texas. SDI plans to begin operations at the new EAF mill in mid-2021.

Zimmer is headquartered in Monterrey, Mexico, and operates a ferrous and nonferrous 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.

“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,” said SDI President and CEO Mark Millett.

SDI’s new EAF mill will have 3 million tons of annual production capability including a 550,000-ton galvanizing line and 250,000-ton paint line. The mill will be able to produce coils up to 52.5 tons in widths from 38-84 inches and gauges from 0.047-1.00 inch.