SDI Deepens Its Scrap Stream for Texas Mill
In a statement, SDI said its acquisition of Zimmer S.A. de C.V. will give it approximately 2 million gross tons of new scrap processing capacity. Zimmer currently ships about 500,000 tons of ferrous and nonferrous scrap annually, SDI said.
"We look forward to welcoming Zimmer to the Steel Dynamics family to further solidify our Southwest U.S. and Mexico growth strategy," said SDI president and chief executive Mark D. 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.”
SDI said Zimmer operates six processing facilities that are near high-volume industrial scrap sources in central and northern Mexico. Zimmer also operates several third-party scrap processing locations.
“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," Millett said.