FORT WAYNE — Steel Dynamics Inc. on Monday announced that the company has entered into a definitive agreement to acquire 100% of the equity interest of Zimmer, S.A. de C.V., to be funded entirely with available cash.

SDI said the acquisition is part of its raw material procurement strategy to support its new Texas flat roll steel mill.

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.

Zimmer’s combined facilities currently ship approximately 500,000 gross tons of scrap annually and have an estimated annual processing capability of approximately 2 million gross tons.

“We look forward to welcoming Zimmer to the Steel Dynamics family to further solidify our Southwest U.S. and Mexico growth strategy,” said Mark D. Millett of Auburn, president and chief executive officer of Steel Dynamics.

“Combined with our existing metals recycling presence in Mexico, the addition of Zimmer provides an expanded 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,” Millett said. “Zimmer provides a platform to grow our metals recycling presence in Mexico, representing a meaningful achievement in our raw material sourcing strategy for our Texas steel mill, which is currently under construction and expected to begin operations mid-year 2021.”

Steel Dynamics operates a steel mill and New Millennium Building Systems plant southwest of Butler and an OmniSource metals recycling station in Auburn.
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