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Article: Steel Dynamics buys recycler OmniSource to insure supply.
- Article from:
- Purchasing
- Article date:
- October 18, 2007
CopyrightCOPYRIGHT 2007 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Staff
Steel Dynamics of Fort Wayne, Ind., has agreed to purchase privately held scrap recycler OmniSource for slightly more than $1 billion, a move applauded by steel industry analysts for its cost-cutting potential. OmniSource accounts for roughly 8% of the North American ferrous scrap supply or approximately 5.3 million tons.
OmniSource will operate as a wholly owned subsidiary of Steel Dynamics and will continue its focus on the ferrous and nonferrous scrap processing, brokerage, and industrial scrap management needs of its customers. Steel Dynamics' existing scrap operations in Virginia and Tennessee will be consolidated into OmniSource, as will ...