Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) is pleased to
announce the successful restart of production at its Cascade Steel
Rolling Mills in McMinnville, OR. The Company is also pleased to
announce that it has entered into an agreement to purchase the
assets of Columbus Recycling in the Southeast region of the United
States.
Cascade Steel Rolling Mills Restart
Earlier this week, Cascade restarted production following the
substantial completion of replacement and repairs of property and
equipment at the mill’s melt shop that had been lost or damaged by
a fire on May 22, 2021. Cascade has resumed operations with a full
workforce several weeks ahead of schedule and is accepting orders
for its full range of finished steel products based on the rolling
schedule. Due to the timing of the restart and the ramp up in
operations, Cascade is expected to complete a limited number of
sales prior to the end of August, the close of Schnitzer’s fiscal
year.
Tamara Lundgren, Chairman and Chief Executive Officer of
Schnitzer Steel Industries, stated, "I am proud of our team’s
exceptional efforts to bring the mill back into production ahead of
schedule, enabling us to support our customers with high quality
finished steel products. Cascade is powered by electricity that is
more than 95% carbon-free. Combined with the use of recycled metal
as its primary raw material, the steel made in our electric arc
furnace steel mill has an exceptionally low carbon impact as
compared to the industry average."
Agreement to Acquire Columbus Recycling
On August 12, Schnitzer entered into a definitive agreement with
Columbus Recycling, a leading provider of ferrous and non-ferrous
metal recycling products and services, to acquire eight operating
facilities across several states in the Southeast, including
Mississippi, Tennessee, and Kentucky. The transaction is expected
to close during the first quarter of Schnitzer’s 2022 fiscal year,
subject to regulatory approvals.
Founded in 1956, Columbus Recycling has a well-established
customer-focused business that purchases and processes scrap metal
from industrial manufacturers, local recycling companies, and
individuals, and sells the recycled products to regional foundries
and steel mills. Combined with Schnitzer’s nine existing facilities
in Georgia, Alabama, and Tennessee, the acquired operations will
offer additional recycling products, services, and logistics
solutions to customers and suppliers across the Southeast, a region
that is expected to see a significant increase in electric arc
furnace steelmaking capacity in the coming years. In the twelve
months through the end of May 2021, Columbus has delivered annual
sales volumes of approximately 300,000 ferrous tons which, on a
pro-forma basis, would increase Schnitzer’s total ferrous volumes
by approximately 7% over the same period.
Tamara Lundgren, Chairman and Chief Executive Officer of
Schnitzer Steel Industries, stated, “The acquisition of Columbus
Recycling will expand our platform and offerings in a robust
regional market with immediate scale and meaningful synergies. The
transaction is consistent with our growth strategy to expand metals
recycling operations to meet anticipated increases in steel and
nonferrous metals demand driven in part by the global transition to
low carbon technologies. While a variety of solutions will be
required as industries, communities, and governments actively
pursue carbon reduction, the increased use of recycled metals is
one path that is immediately achievable.”
Ms. Lundgren continued, “We look forward to welcoming the
Columbus Recycling team to the Schnitzer family, as both
organizations have fostered cultures focused on operating
responsibly and sustainably for their customers and the communities
in which they operate.”
Preliminary Fourth Quarter Results
The Company expects to announce preliminary consolidated
financial results for its fiscal 2021 fourth quarter during the
second half of September, including an update on the financial
impact of the melt shop fire at its steel mill and the status of
the related insurance recoveries.
About Schnitzer Steel
Schnitzer Steel Industries, Inc. is one of the largest
manufacturers and exporters of recycled metal products in North
America with operating facilities located in 23 states, Puerto Rico
and Western Canada. Schnitzer has seven deep water export
facilities located on both the East and West Coasts and in Hawaii
and Puerto Rico. The Company’s integrated operating platform also
includes 50 stores which sell serviceable used auto parts from
salvaged vehicles and receive approximately 5 million annual retail
visits. The Company’s steel manufacturing operations produce
finished steel products, including rebar, wire rod and other
specialty products. The Company began operations in 1906 in
Portland, Oregon.
Forward Looking Statements
Statements and information included in this press release that
are not purely historical are forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934 and
are made pursuant to the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Except as noted herein or
as the context may otherwise require, all references in this press
release to “we,” “our,” “us,” “the Company” and “SSI” refer to
Schnitzer Steel Industries, Inc. and its consolidated
subsidiaries.
Forward-looking statements in this press release include
statements regarding future events or our expectations, intentions,
beliefs and strategies regarding the future, which may include
statements regarding the impact of pandemics, epidemics or other
public health emergencies, such as the coronavirus disease 2019
(“COVID-19”) pandemic; the impact of equipment upgrades, equipment
failures and facility damage on production, including timing of
repairs and resumption of operations; the realization of insurance
recoveries; the Company’s outlook, growth initiatives or expected
results or objectives, including pricing, margins, sales volumes
and profitability; completion of acquisitions and integration of
acquired businesses; liquidity positions; our ability to generate
cash from continuing operations; trends, cyclicality and changes in
the markets we sell into; strategic direction or goals; targets;
changes to manufacturing and production processes; and planned
capital expenditures.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, and often contain words such
as “outlook,” “target,” “aim,” “believes,” “expects,”
“anticipates,” “intends,” “assumes,” “estimates,” “evaluates,”
“may,” “will,” “should,” “could,” “opinions,” “forecasts,”
“projects,” “plans,” “future,” “forward,” “potential,” “probable,”
and similar expressions. However, the absence of these words or
similar expressions does not mean that a statement is not
forward-looking.
We may make other forward-looking statements from time to time,
including in reports filed with the Securities and Exchange
Commission, press releases, presentations and on public conference
calls. All forward-looking statements we make are based on
information available to us at the time the statements are made,
and we assume no obligation to update any forward-looking
statements, except as may be required by law. Our business is
subject to the effects of changes in domestic and global economic
conditions and a number of other risks and uncertainties that could
cause actual results to differ materially from those included in,
or implied by, such forward-looking statements.
Some of these risks and uncertainties are discussed in “Item 1A.
Risk Factors” of Part I of our most recent Annual Report on Form
10-K, as supplemented by our subsequently filed Quarterly Reports
on Form 10-Q. Examples of these risks include: the impact of
pandemics, epidemics or other public health emergencies, such as
the COVID-19 pandemic; the impact of equipment upgrades, equipment
failures and facility damage on production; difficulties associated
with acquisitions and integration of acquired businesses; the
cyclicality and impact of general economic conditions; changing
conditions in global markets including the impact of sanctions and
tariffs, quotas and other trade actions and import restrictions;
volatile supply and demand conditions affecting prices and volumes
in the markets for raw materials and other inputs we purchase;
significant decreases in scrap metal prices; imbalances in supply
and demand conditions in the global steel industry; reliance on
third party shipping companies, including with respect to freight
rates and the availability of transportation; inability to obtain
or renew business licenses and permits; the impact of goodwill
impairment charges; the impact of long-lived asset and equity
investment impairment charges; failure to realize or delays in
realizing expected benefits from investments in processing and
manufacturing technology improvements; inability to achieve or
sustain the benefits from productivity, cost savings and
restructuring initiatives; inability to renew facility leases;
customer fulfillment of their contractual obligations; the impact
of consolidation in the steel industry; environmental compliance
costs and potential environmental liabilities; and compliance with
climate change and greenhouse gas emission laws and
regulations.
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version on businesswire.com: https://www.businesswire.com/news/home/20210817005270/en/
Investor Relations Michael Bennett (503) 323-2811
mcbennett@schn.com
Company Info: www.schnitzersteel.com ir@schn.com
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