Schnitzer Acquiring Southeastern Scrap Dealer

Schnitzer Steel Industries, Inc.’s wholly owned subsidiary, RRC Acquisition LLC, signed a agreement to buy substantially all of the assets of Regional Recycling LLC for $65.5 million in cash and the assumption of certain liabilities.

Regional operates 10 metals recycling facilities. The Regional Recycling facilities include three locations in Atlanta, as well as Gainseville, Cartersville, Roosville and Bainbridge, all in Georgia; and three locations in Alabama: Birmingham, Attalla and Selma.

John D. Carter, Schnitzer’s president and CEO, said, "We are very pleased to add the Regional facilities and its employees to Schnitzer Steel. The Regional acquisition is our initial step in growing the East Coast businesses that we will receive upon closing of the separation agreement with Hugo Neu Corporation. The Regional franchise is well situated to continue to participate in the growing market for recycled metals in the southeastern U.S., which is home to many new automobile and auto parts manufacturers. During calendar 2004, Regional sold over 500,000 tons of ferrous metal and nearly 100 million pounds of non-ferrous metal, which resulted in $190.4 million in revenue and a significant operating margin. Regional sells its ferrous metal to domestic steel mills in its area, of which there are 23 today. Its non-ferrous metal is sold in both domestic and foreign markets."