PITTSBURGH Sims Metal Management Ltd. has sold its Colorado holdings to Evraz Recycling and divested its interest in a joint venture in the Southeast.
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 facility."
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 offered employment.
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 Inc.