PITTSBURGH Sims Metal
Management Ltd. has sold its Colorado holdings to Evraz
Recycling and divested its interest in a joint venture in
Evraz Recycling, a division of
Chicago-based Evraz North America Inc., has purchased
Sims Denver shredder plant and its Colorado Springs
location for an undisclosed price. Evraz indicated that it made
the purchases to become more vertically integrated.
"This acquisition will support
our long-term strategic goal to optimize Evraz steel mill input
costs," Evraz Recycling president John Zanieski said. "In
conjunction with several other suppliers in the Colorado
ferrous scrap market, these new assets will expand our ability
to meet the scrap requirements of the Evraz Pueblo
The Colorado Springs location is
522,750 square feet; the Denver location is 392,040 square feet
and has an automobile shredder, according to regulatory
filings. Evraz was the primary consumer of scrap from these
yards, and all 45 employees at the two locations are being
Evrazs Pueblo steelmaking
facility employs 1,200 people and makes rail, seamless pipe,
rod and coiled reinforcing bar.
Sims has also sold its interest
in a southeastern joint venture to Houchens Industries Inc.
These assets include facilities in Bowling Green and Owensboro,
Ky.; and Nashville, Tenn.
"We are committed to growing and
strengthening our business, and if that entails exiting a
region, we are prepared to do so," Sims' North America Metals
president Bob Kelman said.
"As we looked at our geographic
footprint and the opportunities that await our company, it made
sense for us to act decisively and redeploy precious capital to
those markets with the greatest near- and long-term return and
strategic characteristics," he added.
Editor's note: This story was updated on Oct. 2,
2012. Due to a reporting error, it was
incorrectly stated that Sims Metal Management Ltd. sold its
interest in Southern Recycling LLC, a joint venture with
European Metal Recycling Ltd. Sims actually sold its
joint-venture interest in facilities in Bowling Green and
Owensboro, Ky., and Nashville, Tenn., to Houchens Industries