Cleveland-Cliffs, the largest flat steel producer in North America, has announced its entry into the scrap metal market through the acquisition of a scrap recycling company in Detroit. The deal is expected to close in the fourth quarter of 2021, subject to regulatory approval and other normal closing conditions.
The company announced that it has entered into a definitive agreement to acquire Ferrous Processing and Trading Company (FTP) and its related companies for a total of approximately $ 775 million on a cashless and non-collateral basis.
FTP is one of the largest recyclers and distributors of premium ferrous scrap in the United States. It currently recycles about 3 million tonnes of scrap per year, of which almost 50% is premium scrap. A total of 22 scrap processing enterprises operate in the country. The company's EBITDA for the year ended August 31, 2021 was approximately $ 100 million. The company was selected by Fastmarkets as the winner of the 2019 Scrap Company of the Year competition.
The deal will help the company optimize performance at its existing EAF and converter furnaces. In addition to expanding our portfolio of high quality raw materials for ferrous metals, this will also help ensure significant access to first-class scrap metal.
North American flat steel maker invades scrap metal recycling business
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Azovpromstal® 13 October 2021 г. 09:38 |
