Metso Outotec to sell its Metal Recycling business line to Mimir affiliate
Helsinki-based Metso Outotec says it has signed an agreement to divest its Metal Recycling business line to an affiliate of Mimir, an investment company based in Stockholm, with the transaction expected to close in the first half of the year. The parties have decided not to disclose the value of the transaction, with Metso Outotec adding that the divestment will not have a material impact on its financial results.
The Metal Recycling business that Mimir purchased includes the Lindemann and Texas Shredder brands. The business will change its name in conjunction with the divestment and operate globally as Lindemann, with headquarters in Düsseldorf, Germany. The business unit’s nearly 160 employees will transfer to the new company in connection with the transaction. Its 2020 net sales totaled 77 million euros (nearly $87.4 million).
Metso Outotec announced its intention to divest its metals and waste recycling businesses in late October 2020. These businesses have since been reported as part of discontinued operations in Metso Outotec’s financial statements. The divestment of the company’s Waste Recycling business to Helsinki-based Ahlström Capital’s fully owned investment company, Ahlstrom Capital BV, was completed in early December 2021.
Piia Karhu, senior vice president, Business Development and Metal Recycling business line, at Metso Outotec, says, “We are delighted that, going forward, the Metal Recycling business will continue to implement its strategy together with the new owner, Mimir. As an established standalone company, its full focus will be on the metal recycling markets and customers.”
“This is a great opportunity for Metal Recycling to take the next step in our development,” says Ioannis Giouvanitskas, vice president of Metso Outotec Metal Recycling. “Mimir has the resources to quickly expand our leading market position and to be able to provide our products and services to a growing, global customer base,” he adds.
Joakim Notö, managing partner and group chairman at Mimir Invest, says, “We warmly welcome Metso Outotec Metal Recycling to Mimir and look forward to driving growth for this attractive business together with its employees.”
He adds, “Metso Outotec Metal Recycling is a typical Mimir investment, being carved out from a large corporation with leading technology and engineering expertise that positions it among the premium brands in its markets.”
Mimir is a global investment firm acquiring noncore business units of large corporations as well as private companies that need operationally oriented ownership. The Mimir group has operations in 20 countries worldwide, employing 1,200 people.
Company Wrench announces opening of Florida branch
Company Wrench, headquartered in Carroll, Ohio, has announced the opening of its Jacksonville, Florida, branch, which offers new and used equipment for sale and rent in the general construction, demolition, scrap and recycling markets.
This branch is equipped with full parts and service departments, the company says. It also allows Company Wrench to expand its Kobelco dealership to northeast Florida and southeast Georgia. Kobelco named Company Wrench the official dealer for central Florida in 2020.
“Our Lakeland branch has proudly served Florida for over 10 years,” says Cam Gabbard, Company Wrench president. “Opening the Jacksonville location provides a tremendous opportunity to serve new customers in another thriving market.
“This is also a significant development in Company Wrench’s partnership with Kobelco,” he adds. “The expansion of Company Wrench’s territory means even more customers will enjoy the benefits of the outstanding Kobelco product.”
The new branch is on Phillips Highway in Jacksonville. Customers can contact Larry Hunt for service at firstname.lastname@example.org, Clay Bentley for parts at c.bentley@ companywrench.com and Brian Baum for sales and rentals at email@example.com.
US Steel part of gondola car fabrication effort
Pittsburgh-based U.S. Steel Corp. has formed an alliance with Norfolk Southern Corp. and Oregon-based equipment fabricator Greenbrier Cos. Inc. to design what they call a new, more sustainable steel gondola rail car.
The cars will use high-strength, lighter weight steel developed by U.S. Steel, reducing the weight of each car by up to 15,000 pounds compared with conventional models. Norfolk Southern initially will acquire 800 of the Greenbrier engineered gondolas, according to a news release prepared by the three companies.
Scrap processors are likely to call for a greater number than that, as for several years shippers in the ferrous scrap sector have pointed to a lack of gondola cars and long waits for them.
The three companies refer to a “recognition that North America’s aging gondola fleet will soon require substantial replacement with a more sustainable design.”
Regarding the new model, U.S. Steel President and CEO David B. Burritt says, “This remarkable collaboration with our partners at Norfolk Southern and Greenbrier is helping realize the full potential of U.S. Steel’s continued product innovations as sustainable solutions for the steel and transportation industries. This joint initiative proves that point with an innovative rail car that is stronger, lighter and more capable, with the planet being the ultimate beneficiary.”
James A. Squires, chairman and CEO of Norfolk Southern, adds, “The use of lightweight, high-strength steel is a real revolution for rail cars. Not only will each gondola carry more material, they will do so by using less energy, making our operations, and our customers’ operations, even more environmentally friendly.”
“The work done by U.S. Steel, Norfolk Southern and Greenbrier promises significant benefits to all three companies and the freight transportation industry as a whole,” says William A. Furman, Greenbrier chairman and CEO. “The three partners on this next generation transportation equipment have deep roots in industrial America. Together, we are leading the way to a net-zero carbon economy. I look forward to our continued partnership.”
In addition to sustainability and increased capacity benefits, the three companies say the new car should have an extended life cycle, “potentially extending the useful life of each gondola to 50 years.”
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