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.