BlueScope finalizes MetalX acquisition

Australia-based steelmaker BlueScope has completed the acquisition of the ferrous scrap steel recycling business of Waterloo, Indiana-based MetalX LLC. MetalX serves as a supplier of scrap feed to BlueScope’s Delta, Ohio, electric arc furnace steel minimill, North Star BlueScope Steel.

According to a news release from BlueScope, the transaction was completed on terms entered into and announced Nov. 5. BlueScope says the newly acquired business will operate under the name BlueScope Recycling and Materials.

MetalX had operated four facilities—one in Delta, which exclusively handles ferrous scrap; one in Waterloo, which handles ferrous and nonferrous scrap; one in Auburn, Indiana, which exclusively handles nonferrous scrap; and a small community recycling facility in Fort Wayne, Indiana. BlueScope reported that it would pay $240 million to acquire two of MetalX’s operating sites—the Delta and Waterloo facilities.

Mark Vassella, BlueScope’s managing director and CEO, reported in November that the U.S. “is a key focus for BlueScope’s future growth.”

He said, “The MetalX ferrous acquisition adds to BlueScope’s extensive U.S. asset footprint of over $3 billion, which spans steelmaking, steel coating and painting, engineered building systems and industrial property development. And we have current and intended expansion projects totaling up to $1.5 billion, including the NorthStar expansion project.”

Danny Rifkin, founder of MetalX, reported in November that BlueScope had only purchased the ferrous scrap steel recycling business assets from MetalX. He added that his company intends to continue to grow its nonferrous business.

“BlueScope has agreed to buy our ferrous business, which would include all of the assets and facilities related to the buying and selling of ferrous scrap. The people that have been in our ferrous organization are becoming BlueScope employees,” Rifkin told Recycling Today in November.

He said, “Our plan is to execute a growth strategy focused as a nonferrous company. MetalX will no longer be in the ferrous business. We’re splitting the ferrous business out and continuing on as a nonferrous business.”