North American market sees further consolidation

Tuesday, 19 December 2006 02:50:55 (GMT+3)   |  
       

Two major North American steelmakers, Schnitzer Steel and Harris Steel, have both announced merger plans this week, while Brazilian steelmaker Companhia Siderugica Nacional SA (CSN) has officially rescinded its bid to acquire Wheeling-Pittsburgh Corp. Schnitzer Steel Industries Inc., one of the largest manufacturers and exporters of recycled ferrous metal products in the US, announced Monday that it has finalized the acquisition of metals recycler Advanced Recycling. Advanced Recycling handles about 250,000 tons of ferrous scrap metal annually, with four processing facilities located in New Hampshire. “This acquisition is consistent with our strategy of expanding our presence in New England and leveraging the infrastructure investments we have been making at our facilities in the area,” said John Carter, Schnitzer's president and CEO. Harris Steel Group Inc., a leading North American fabricator of rebar and wire products, has also confirmed merger plans: It has announced the signing of definitive agreements to acquire the wire and wire mesh manufacturing business and assets of Brantford, Ontario-based LEC Steel. The transaction is to be structured as an asset purchase, with an estimated purchase price of about CA$16.5 million (US$14 million). Paul Kelly, President of Harris Steel Group Inc., told press,:"We have known, respected and competed with LEC for the last 16 years. Their positioning in construction wire and mesh markets complements our strength. We are excited about welcoming the LEC employees to our team, and look forward to the opportunities that this transaction presents." In other merger news, nearly one month after Wheeling Pittsburgh shareholders voted to accept Esmark's bid to purchase the company, Wheeling-Pittsburgh has officially withdrawn its bid to acquire Wheeling-Pitt. Wheeling-Pitt chairman and CEO James Bouchard said that the company "appreciates the hard work and interest showed by CSN to improve the prospects of Wheeling-Pitt." He added: "CSN will continue to be a valuable customer and supplier of Wheeling-Pitt in the near term, and we believe will also be an important commercial partner to us as we achieve our vision for the future."

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