OmniSource sued by scrap supplier

Aug 16, 2013 | 02:13 PM | Lisa Gordon

Tags  scrap metal, OmniSource, Husqvarna Consumer Outdoor Products, Steel Dynamics, lawsuit, breach of contract, steel dynamics, Lisa Gordon

PITTSBURGH — OmniSource Corp. is facing a lawsuit from an industrial scrap metal generator that alleges it was underpaid or not paid at all for some material over several years.

Husqvarna Consumer Outdoor Products NA Inc. filed the $8-million breach-of-contract suit against the subsidiary of Fort Wayne, Ind.-based Steel Dynamics Inc. in U.S. District Court in South Carolina.

Carolinas Recycling Group LLC (CRG) agreed in 2007 to buy scrap from two Husqvarna facilities based on AMM’s Chicago price for No. 1 busheling with no deductions, according to court documents. CRG, owned 50 percent by OmniSource, merged with Atlantic Scrap & Processing LLC later that year to form Recycle South LLC, and in June 2008 OmniSource acquired all the equity interest in Recycle South,....

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