Cleveland-Cliffs Completes Acquisition of Ferrous Processing and Trading Company
November 18 2021 - 6:26AM
Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) announced today that it
has successfully completed the acquisition of Ferrous Processing
and Trading Company, including certain related entities (“FPT”).
The final necessary regulatory clearances in connection with the
transaction were obtained on November 17. FPT is now a wholly owned
subsidiary of Cleveland-Cliffs Inc.
FPT, which was recently awarded Fastmarkets’ 2021 Scrap Company
of the Year, is a leading prime ferrous scrap processor in the
United States. FPT currently processes approximately three million
tons of scrap per year, approximately half of which is prime grade.
Cliffs expects to grow its prime scrap presence through its
existing relationships with industrial steel consumers.
Lourenco Goncalves, Chairman, President and CEO, said, “The way
the scrap business historically worked has now changed for good.
With our closing of the FPT acquisition today, we are now
immediately focused on amplifying the value of what we believe is
the next precious metal. To drive this, we have already begun the
dialogue with our steel customers with a focus on increasing our
scrap offtake from them under a real closed-loop proposition. We
are starting from a position of strength with the existing business
that FPT has in place, and are excited to expand upon this core
using the FPT scalable footprint.”
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in
North America. Founded in 1847 as a mine operator, Cliffs also is
the largest manufacturer of iron ore pellets in North America. The
Company is vertically integrated from mined raw materials and
direct reduced iron to primary steelmaking and downstream
finishing, stamping, tooling, and tubing. The Company serves a
diverse range of markets due to its comprehensive offering of
flat-rolled steel products and is the largest supplier of steel to
the automotive industry in North America. Headquartered in
Cleveland, Ohio, Cleveland-Cliffs employs approximately 25,000
people across its mining, steel and downstream manufacturing
operations in the United States and Canada. For more information,
visit www.clevelandcliffs.com.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. All statements other than historical facts,
including, without limitation, statements regarding our current
expectations, estimates and projections about our industry or our
businesses, are forward-looking statements. We caution investors
that any forward-looking statements are subject to risks and
uncertainties that may cause actual results and future trends to
differ materially from those matters expressed in or implied by
such forward-looking statements. Investors are cautioned not to
place undue reliance on forward-looking statements. Among the risks
and uncertainties that could cause actual results to differ from
those described in forward-looking statements are the following:
continued volatility of steel and iron ore market prices, which
directly and indirectly impact the prices of the products that we
sell to our customers; uncertainties associated with the highly
competitive and cyclical steel industry and our reliance on the
demand for steel from the automotive industry, which has been
experiencing a trend toward light weighting and supply chain
disruptions, such as the microchip shortage, that could result in
lower steel volumes being consumed; potential weaknesses and
uncertainties in global economic conditions, excess global
steelmaking capacity, oversupply of iron ore, prevalence of steel
imports and reduced market demand, including as a result of the
COVID-19 pandemic; supply chain disruptions or changes in the cost
or quality of energy sources or critical raw materials and
supplies, including iron ore, industrial gases, graphite
electrodes, scrap, chrome, zinc, coke and coal; our ability to
successfully diversify our product mix and add new customers; and
our ability to realize the anticipated synergies and benefits of
the FPT acquisition and to successfully integrate the business of
FPT into our existing businesses. We undertake no obligation to
publicly update forward-looking statements, whether as a result of
new information, future events or otherwise.
For additional factors affecting our business, refer to Part I –
Item 1A. Risk Factors of our Annual Report on Form 10-K for the
year ended December 31, 2020, and our other filings with the
SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20211118005701/en/
MEDIA CONTACT: Patricia Persico Director, Corporate
Communications (216) 694-5316
INVESTOR CONTACT: James Kerr Manager, Investor Relations
(216) 694-7719
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