BlueScope entered into a binding agreement to buy the ferrous scrap-steel recycling business of MetalX LLC, the leading supplier of scrap feed to BlueScope’s Ohio-based mini-mill business, North Star BlueScope Steel. BlueScope will pay $240 million to acquire two of MetalX’s operating sites in Indiana and in Ohio. The Ohio facility is immediately adjacent to the North Star facility in Delta. According to BlueScope, North Star will soon move from a capacity of 2 million metric tons per year to almost 3 million metric tons per year. The acquisition is expected to complete by the end of the year.
“As a steel-recycling electric-arc furnace (EAF) producer of hot-rolled coil utilizing low-emissions electricity, North Star is highly carbon efficient. This acquisition further enhances BlueScope’s sustainability profile by bringing in-house part of North Star’s scrap collection,” said Mark Vassella, BlueScope managing director and CEO. “The acquisition brings us a crucial presence and expertise in scrap processing to further secure our scrap needs – both prime and post-consumer (obsolete) scrap. Further, the MetalX ferrous acquisition will enable North Star to improve the quality and quantity of obsolete scrap it uses and reduce the mix of prime scrap.”