PITTSBURGH Toyota Tsusho Corp. will become a major investor in Scholz AG as part of its strategy to expand its recycling footprint.
The Tokyo-based company has agreed to purchase 39.1 percent of the scrap processor and brokers stock from the Scholz family for an undisclosed sum. The deal is expected to close during the second quarter.
Toyota noted in a press statement that the investment is part of its plan to expand in the recycling business. "We have always been the leading player in the automobile recycling market and have strived to develop the most innovative business model. Our investment in Scholz gives us access to the technology and know-how of Europe," it said.
Essingen, Germany-based Scholz, which posted revenue of $5.1 billion in 2013, claims to be the second-largest metal recycler in terms of volume behind Sims Metal Management Ltd., which posted $6.49 billion in revenue in its fiscal year ended June 30.
Scholz is in a joint venture with Phoenix-based Liberty Iron & Metal Holdings LLC. Liberty has operations in Arizona (Liberty Iron & Metal Southwest LLC, Southwest Metals LLC and We Buy Scrap Liberty LLC), New York (Diamond Hurwitz Scrap LLC in Buffalo and Premier Metals Group LLC in Rochester), Ohio (Niles Iron & Metal Co. LLC in Niles and Interstate Shredding LLC in Girard) and Pennsylvania (Liberty Iron & Metal LLC in Erie and Mercer Co. in Sharon). It also has a joint venture in Mexico, Kalischatarra S de RL de CV.
Scholz operates trading offices in Fort Lee, N.J., and Pleasanton, Calif., and is a partner with Santa Maria, N.M.-based Kalisch Iron & Metal LLC.
Editor's note: This story was updated April 17, 2014. Due to a reporting error, the headquarters location for Liberty Iron & Metal Holdings LLC was incorrect in the original version of this article.