FORT
WAYNE, Ind., May 16, 2022
/PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today
announced that as part of its North American raw material
procurement strategy, the company has entered into a definitive
agreement to acquire the equity interest of ROCA ACERO S.A. de C.V.
("ROCA") to be funded with available cash. ROCA is
headquartered in Monterrey, Mexico
and operates a ferrous and nonferrous scrap metals recycling
business. ROCA's primary operations are comprised of four
scrap processing facilities, strategically positioned near
high-volume industrial scrap sources located throughout Central and
Northern Mexico. These
combined facilities currently ship approximately 575,000 gross tons
of scrap annually and have an estimated annual processing
capability of approximately 850,000 gross tons.
"We look forward to adding ROCA to the Steel Dynamics family to
further solidify our Southwest U.S. and Mexico growth strategy," said Mark D. Millett, Chairman, President and Chief
Executive Officer. "Combined with our existing North American
metals recycling facilities, the addition of ROCA significantly
strengthens our raw material procurement strategy in the region.
After closing the ROCA transaction and fully integrating our
Mexican metals recycling operations, we believe our Mexican scrap
facilities will provide an even more meaningful competitive
advantage to our U.S. electric-arc-furnace steel operations, while
also providing a high-quality, customer centered option for our
outside scrap customers. We are very excited to welcome and learn
from the entire ROCA team."
This transaction is subject to customary closing conditions and
receipt of required regulatory approvals.
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 marketplaces, 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)
domestic and global economic factors; (2) global steelmaking
overcapacity and imports of steel, together with increased scrap
prices; (3) pandemics, epidemics, widespread illness or other
health issues, such as the COVID-19 pandemic; (4) the cyclical
nature of the steel industry and the industries we serve; (5)
volatility and major fluctuations in prices and availability of
scrap metal, scrap substitutes, and our potential inability to pass
higher costs on to our customers; (6) cost and availability of
electricity, natural gas, oil, or other energy resources are
subject to volatile market conditions; (7) increased environmental,
greenhouse gas emissions and sustainability considerations or
regulations; (8) compliance with and changes in environmental and
remediation requirements; (9) significant price and other forms of
competition from other steel producers, scrap processors and
alternative materials; (10) availability of an adequate source of
supply of scrap for our metals recycling operations; (11)
cybersecurity threats and risks to the security of our sensitive
data and information technology; (12) the implementation of our
growth strategy; (13) litigation and legal compliance, (14)
unexpected equipment downtime or shutdowns; (15) governmental
agencies may refuse to grant or renew some of our licenses and
permits required to operate our businesses; (16) our senior
unsecured credit facility contains, and any future financing
agreements may contain, restrictive covenants that may limit our
flexibility; and (17) the impact of impairment charges.
More specifically, refer 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
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.