Sims Metal Management (SMM), the Australia-based recycling firm, has announced the sale of several scrap recycling facilities in the southeastern United States to Steel Dynamics Inc. (SDI), a steelmaker based in Fort Wayne, Indiana, that also operates OmniSource as its scrap processing subsidiary.
The sale is related principally to several metals recycling facilities in Tennessee and Mississippi. SMM, according to its website, had been operating just one location in Tennessee, which is in Memphis and has an auto shredding plant and river barge access. The company lists five locations in Mississippi: Bryam, Elliott, Greenville, Greenwood and Sherman. The Greenville yard has an auto shredding plant and also has river barge access.
“The sale of our metals recycling operations in the central region represents a significant step in our initiatives to divest non-core assets and reallocate capital to our key markets," says Galdino Claro, SMM’s group CEO. "The divestment, in line with our strategy, will allow management to focus on our core operations. We are confident that service will continue to be delivered with the best outcomes for our employees, suppliers and customers for years to come.”
“We believe these assets, located in Memphis, Tennessee and throughout Mississippi, are well positioned to support our Columbus Flat Roll Division, as we work towards greater raw material self-sufficiency in the region,” says Russell Rinn, executive vice president of metals recycling for SDI. “We enthusiastically welcome the 90 employees to the Steel Dynamics family.”
SDI is one of the largest domestic steel producers and metals recyclers in the United States. The company operates six electric arc furnace steel mills, 10 steel coating lines, an iron production facility, eight steel fabrication plants and about 75 metals recycling locations operated through OmniSource, its wholly owned subsidiary.