FORT WAYNE, Ind., Aug. 3, 2020 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today announced the completion of the
acquisition of Zimmer, S.A. de C.V. ("Zimmer"), as part of its raw
material procurement strategy to support its new Texas flat roll steel mill, which is planned
to begin operations mid-year 2021. The transaction was funded with
available cash.
Zimmer is headquartered in Monterrey,
Mexico and operates a ferrous and nonferrous scrap metals
recycling business. Zimmer's primary operations are comprised of
six scrap processing facilities strategically positioned near
high-volume industrial scrap sources located throughout Central and
Northern Mexico. The company also
operates several third-party scrap processing locations. These
combined facilities currently ship approximately 500,000 gross tons
of scrap annually and have an estimated annual processing
capability of two million gross tons.
"We sincerely welcome the Zimmer team into the Steel Dynamics
family," stated Mark D. Millett,
President and Chief Executive Officer. "Combined with our existing
metals recycling presence in Mexico, the acquisition of Zimmer expands our
commercial presence in the region and strengthens our raw material
supply strategy, allowing for cost-effective ferrous scrap
procurement for our new Texas flat
roll steel mill. Zimmer provides a platform to grow our
metals recycling presence in Mexico and represents a meaningful achievement
in our raw material sourcing strategy for our Texas flat roll steel mill."
About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers
and metals recyclers in the United
States based on estimated annual steelmaking and metals
recycling capability, with facilities located throughout
the United States, and in
Mexico. Steel Dynamics produces
steel products, including hot roll, cold roll, and coated sheet
steel, structural steel beams and shapes, rail, engineered
special-bar-quality steel, cold finished steel, merchant bar
products, specialty steel sections and steel joists and deck. In
addition, the company produces liquid pig iron and processes and
sells ferrous and nonferrous scrap.
Forward-Looking Statements
This press release contains some predictive statements about
future events, including statements related to conditions in
domestic or global economies, conditions in steel and recycled
metals market places, Steel Dynamics' revenues, costs of purchased
materials, future profitability and earnings, and the operation of
new, existing or planned facilities. These statements, which we
generally precede or accompany by such typical conditional words as
"anticipate", "intend", "believe", "estimate", "plan", "seek",
"project", or "expect", or by the words "may", "will", or "should",
are intended to be made as "forward-looking," subject to many risks
and uncertainties, within the safe harbor protections of the
Private Securities Litigation Reform Act of 1995. These statements
speak only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not a guarantee of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
the effects of uncertain economic conditions; (2) the effects of
pandemics or other health issues, such as the recent novel
coronavirus outbreak (COVID-19); (3) cyclical and changing
industrial demand; (4) changes in conditions in any of the steel or
scrap-consuming sectors of the economy which affect demand for our
products, including the strength of the non-residential and
residential construction, automotive, manufacturing, appliance,
energy, and other steel-consuming industries; (5) fluctuations in
the cost of key raw materials and supplies (including steel scrap,
iron units, zinc, graphite electrodes, and energy costs) and our
ability to pass on any cost increases; (6) the impact of domestic
and foreign imports, including trade policy, restrictions, or
agreements; (7) unanticipated difficulties in integrating or
starting up new, acquired or planned businesses or assets; (8)
risks and uncertainties involving product and/or technology
development; and (9) occurrences of unexpected plant outages or
equipment failures.
More specifically, we refer you to Steel Dynamics' more detailed
explanation of these and other factors and risks that may cause
such predictive statements to turn out differently, as set forth in
our most recent Annual Report on Form 10-K under the headings
Special Note Regarding Forward-Looking Statements and Risk Factors,
in our quarterly reports on Form 10-Q, or in other reports which we
from time to time file with the Securities and Exchange Commission.
These are available publicly on the Securities and Exchange
Commission website, www.sec.gov, and on the Steel Dynamics website,
www.steeldynamics.com under "Investors — SEC Filings".
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SOURCE Steel Dynamics, Inc.