PITTSBURGH Gerdau Long
Steel North America has completed its acquisition of a Virginia
scrapyard chain as part of its strategy of owning assets near
its melting facilities.
The Tampa, Fla.-based steelmaker
finalized the deal Feb. 1 for Roanoke, Va.-headquartered Cycle
Systems Inc., which sources had suggested to AMM would
happen last summer (amm.com, Aug. 14). The terms of
the deal were not disclosed.
"This purchase supports our goal
to minimize billet cost by having scrap sources closer to our
steel mills," said Guilherme G. Johannpeter, president of
Gerdau Long Steel North America, a division of Brazilian
steelmaker Gerdau SA. "It will be a great advantage for our
mill in Petersburg, Va., and other nearby operations."
The Petersburg facility is
capable of melting 1.2 million tons and rolling 1.1 million
tons of structural steel products, including wide-flange beams,
annually. There is also a shredder at the Petersburg mill
operated by Sims Metal Management Ltd.
"We look forward to adding Cycle
Systems to our existing network of scrap processing locations.
In addition to supporting our sourcing strategy, it will also
grow our commitment to sustainability and the Petersburg
community," said Matt Yeatman, vice president of metallics and
raw materials at Gerdau Long Steel North America.
The assets will carry the Gerdau
name, and the company is evaluating the existing management
The purchase increases
Gerdaus presence in Virginia, where Cycle Systems has
nine locations: Charlottesville, Covington,
Harrisonburg/Broadway, Lynchburg, Martinsville, Pulaski,
Roanoke, South Boston and Stuarts Draft/Waynesboro.
Cycle Systems, which has a
shredder, processed 185,000 tons of scrap in 2011, according to