NEW YORK American Iron & Metal Co. Inc. (AIM) is acquiring OneSteel Recycling Inc.s operations in Maine, AMM has learned.
AIM president and chief executive officer Herb Black confirmed that his company has acquired OneSteel Recyclings facilities in Maine and said the deal is being finalized.
"We bought the five locations OneSteel has in Maine. Its in the process," he said.
Once completed, the acquisition will mark Montreal-based AIMs first foray into New England, a move that Black said fits well with his companys structure.
"Its just an intelligent purchase because we have our operations in St. John (New Brunswick), and that material can move as easily to St. John as it can to the East Coast," he said.
Sydney, Australia-based Arrium Ltd., OneSteels parent company, announced this past summer that it would offer its U.S. recycling business for sale (amm.com, July 5).
OneSteel owns and operates five facilities in Florida, five in Maine and one in Virginia.
"We have a priority to reduce the companys overall level of debt. Todays announcement reflects initiatives in our steel and recycling businesses, with our focus on improving earnings and cash generation," Arrium managing director and chief executive officer Andrew Roberts said at the time.
OneSteel did not respond to a request for comment, and there was no news yet regarding market interest for its Florida and Virginia operations.
One market source said the sale of the companys Florida assets would prove to be the most challenging due to competition.
"Thats a very tough market to find margins in. The competition is too intense," he said.