SDI to Acquire Mexican Scrap Recycler

Steel Dynamics has agreed to acquire 100 percent of the equity interest of ferrous and nonferrous scrap metal recycler Zimmer, S.A. de C.V. The Monterrey, Mexico, operations will support raw material procurement for Steel Dynamics’ new Texas flat rolled mill.

Zimmer operations consist of six scrap processing facilities located near scrap-rich industrial areas in Central and Northern Mexico, as well as several third-party scrap processing locations. The combined facilities ship 500,000 gross tons of scrap annually with an estimated annual processing capability of 2 million gross tons.

“We look forward to welcoming Zimmer to the Steel Dynamics family to further solidify our Southwest U.S. and Mexico growth strategy,” said President and CEO Mark Millett. “Combined with our existing metals recycling presence in Mexico, the addition of Zimmer provides an expanded 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. Zimmer provides a platform to grow our metals recycling presence in Mexico, representing a meaningful achievement in our raw material sourcing strategy for our Texas steel mill, which is currently under construction and expected to begin operations mid-year 2021.”