Steel Mills
Cliffs Officially Rolls Out New Scrap Division, Executive Promotions
Written by Michael Cowden
August 31, 2021
Cleveland-Cliffs Inc. has officially rolled out the new scrap division that its top executive first mentioned at the SMU Steel Summit last week in Atlanta.
The Cleveland-based steelmaker also confirmed that its CFO, Keith Koci, had been promoted to president of Cleveland-Cliffs Services, the official name of the new scrap, logistics and raw materials wing of the company.
Koci’s primary job will be expanding Cliffs’ presence in the domestic scrap recycling market.
“In this new era of steel decarbonization, scrap will become precious metal, and Keith’s deep background in M&A makes him the perfect person to lead this venture,” Cleveland-Cliffs Inc. Chairman, President and CEO Lourenco Goncalves said in a statement on Monday, Aug. 30.
Goncalves used the same term at the steel summit on Monday, Aug. 23, when he said that the company would expand in scrap “very soon” because prime scrap in particular had become a “precious metal.”
Celso Goncalves – son of Lourenco Goncalves – has been promoted to replace Koci as CFO. The younger Goncalves previously worked as treasurer of the company.
Also promoted was Clifford T. Smith, previously chief operating officer of Cliffs. He is now president of Cleveland-Cliffs Steel – a segment that includes steelmaking, tooling-and-stamping, and tubular operations, the company said.
“I plan to be in this seat for the long term, and the collaboration of these three executives and their work with me are paramount to the continued success of our company,” the elder Goncalves said.
Smith, who led the integration of the former AK Steel and the former ArcelorMittal USA, will continue to be his “second in command.”
Cliffs became the largest flat-rolled steelmaker in the U.S. following the 2020 acquisitions of AK Steel and ArcelorMittal USA. The deals consolidated the industry and resulted in there being only two integrated steelmakers in the U.S.: Cliffs and U.S. Steel.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
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