CMA Corp. Ltd announced it will acquire Meretec Steel Recycling Plant, based in Chicago, from Meretec Corp. for around $7.7 million.
The acquisition follows CMA opening a Meretec plant at CMA's recycling facility in Ringwood, Victoria, Australia.
"This will be CMA's first foray into the US market, representing a major step forward for the Company giving us greater geographic diversity and a new revenue stream for the Group," said Peter Hatfull, CMA’s managing director.
"The Chicago based facility is in a location with a high concentration of buyers, traders and feedstock suppliers and will provide us with a scale entry into the buoyant US market.
The Chicago plant will continue to be managed by the existing senior management team.
Meretec Corp., established in 2000, is the developer of the metal recycling and de-zincing Meretec process used at CMA’s Ringwood plant.
Meretec's Chicago-based facilities use the same process to recycle galvanized steel to capture the zinc from the coatings and create a clean black 'Meretec Meltstock' feed for foundries.
The newly acquired facility will initially recycle 125,000 metric tons of galvanized steel a year to produce around 2,000 metric tons of a high grade zinc particulate and about 122,000 metric tons of black steel.