Steel Dynamics, Inc. (SDI) announced that it will commence operations at its auto scrap shredding facilities located in Memphis, Tennessee in Q2 2017. The company acquired the scrap yards, along with scrap facilities throughout Mississippi, from Sims Metal Management in August 2016.
The acquisitions are considered well-positioned to support SDI’s Columbus, Ohio, flat-rolled division with raw material. According to SDI’s annual report, 61 percent of ferrous shipments were internally shipped to SDI mills in 2016.
The regional feeder yards are expected to adequately help supply the auto shredder, especially, at a time of high demand for the ferrous raw material as capacity utilization at many US mills has increased.