Home News SMM Sells Assets in Colorado, JV Stake in Tennessee

SMM Sells Assets in Colorado, JV Stake in Tennessee

Ferrous

Evraz acquires Sims Metal Management’s Colorado assets.

Recycling Today Staff October 1, 2012

New York City-based Sims Metal Management Ltd. (SMM), through its North American metals recycling division, has sold the assets of its Colorado facilities to Evraz Inc. NA, the North American affiliate of the global steel producer Evraz Group S.A. SMM will continue to own its Utah facility.

SMM also sold its joint venture stake in Metal Management Nashville LLC and two small scrap yards that in Bowling Green, Ky., and Owensboro, Ky., to its joint venture partner Houchens Industries. The Kentucky facilities operated under the name Southern Recycling.

Evraz is the primary consumer of the scrap metal produced at the Colorado locations. The Colorado assets included one shredding yard in Denver and a full-service facility in Colorado Springs.

Bob Kelman, president of SMM North America, says, “We’re pleased that we have found the best fit for these two businesses and their valued employees. As we looked at our geographic footprint and the opportunities that await our company, it made sense for us to act decisively and redeploy precious capital to those markets with the greatest near- and long-term return and strategic characteristics, as evidenced by our recent acquisitions and by the formation of our new Gulf Coast and New England subregions. We are committed to growing and strengthening our business, and if that entails exiting a region, we are prepared to do so, as we build the best and strongest platform from which to operate.”  

Reflecting its renewed focus in the Gulf Coast area, SMM says in late August it acquired Dave’s Auto Shredding, a metal recycler with a shredding facility in Mobile, Ala., and additional full-service facilities in Biloxi, Pascagoula and Picayune, Miss.

Evraz N.A, operates steel manufacturing facilities in Portland, Ore.; Regina, Saskatchewan; Pueblo, Colo.; Claymont, Del.; Calgary, Camrose and Red Deer, Alberta; and Surrey, B.C. The company says it is the largest producer of No. 1 large diameter pipe and the largest producer of rail steel.

Evraz says the acquired scrap yards will become part of Evraz Recycling, a division of Evraz North America.

“This acquisition will support our long-term strategic goal to optimize Evraz steel mill input costs,” says John Zanieski, president of Evraz Recycling. “In conjunction with several other suppliers in the Colorado ferrous scrap market, these new assets will expand our ability to meet the scrap requirements of the Evraz Pueblo facility.”


 

Sponsors

Current Issue

Follow us on Twitter
Follow us on LinkedIn