Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/a2735b4ad255aa4be3c13350a7e6dbc8.jpg)
SDI Completes Purchase of Mexican Recycler Roca Acero
Written by David Schollaert
October 4, 2022
Steel Dynamics Inc. (SDI) has completed its acquisition of Mexican ferrous and nonferrous scrap recycler Roca Acero SA de CV.
The Fort Wayne, Ind.-based EAF steelmaker did not disclose the purchase price but said the deal was paid for in cash.
“Combined with our existing metals recycling facilities in Mexico, the addition of Roca significantly strengthens our ferrous and nonferrous raw material procurement strategy in the region,” SDI chairman, president, and CEO Mark D. Millett said in a statement on Tuesday, Oct. 4.
“We believe our Mexican metals recycling facilities will provide a meaningful advantage to our electric-arc-furnace steel operations and planned aluminum flat-rolled products operations, while also providing a high-quality, customer-centric option for our customers in Mexico and the US,” he said.
Roca Acero, a Monterrey, Mexico-based metals recycler, operates five ferrous and nonferrous scrap metal recycling facilities “strategically positioned near high-volume industrial scrap sources” in central and northern Mexico, according to SDI.
Roca currently ships approximately 575,000 gross tons of scrap annually. It has an annual processing capability of roughly 850,000 gross tons per year, the company said.
The acquisition of Roca Acero is SDI’s second acquisition in the Mexican scrap market. The steelmaker in August 2020 closed a deal for Monterrey-based scrap recycler Zimmer SA de CV.
With the two Mexican metals recycling businesses, SDI estimates its annual ferrous and nonferrous scrap processing capability within Mexico will be over 2.5 million gross tons.
The scrap will help feed SDI’s new EAF sheet mill in Sinton, Texas. The new mill, which officially started up in the first quarter of this year, cost $1.9 billion and has a steelmaking capacity of 3 million tons per year.
Like all EAFs, its primary feedstock is scrap, and SDI’s latest move helps ensure it has enough feedstock for its mills.
The Sinton mill is near Corpus Christi, a port city in southern Texas, and is approximately 300 miles from Monterrey — Mexico’s traditional industrial heartland.
By David Schollaert, David@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_DS_headshot.png-150x150.jpg)
David Schollaert
Read more from David SchollaertLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Cliffs_logo2.2.png)
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.