Mining and materials group Arrium Ltd., based in Australia, has announced details on changes it is planning for its steel and recycling business.
As part of its restructuring, Arrium has announced it will put up for sale its non-integrated merchandising businesses (previously part of the steel distribution segment) and its U.S. recycling business.
Arrium’s OneSteel Recycling unit operates from more than 40 locations in the United States, Australia, New Zealand, China, Thailand and India. The U.S. locations are in Florida, Maine and Virginia.
“We have a priority to reduce the company’s overall level of debt,” says Roberts. “Our announcement reflects initiatives in our steel and recycling businesses, with our focus on improving earnings and cash generation.”
The announcement follows a statement earlier this year by Andrew Roberts, Arrium’s managing director and CEO, who said the company plans to focus on cash generation through improved earnings from cost reductions, driving down working capital and divesting “non-integrated steel businesses and properties.”
That announcement included combining the company’s steel manufacturing and distribution businesses to form a single steel business. Arrium also announced in February 2013 that it was progressing in the sale of its Australian Tube Mills business.