ArcelorMittal continues scrap recycler acquisition spree
ArcelorMittal has agreed to acquire Polish scrap recycler Zlomex as it seeks to expand its global scrap procurement and processing infrastructure, Kallanish notes.
This was the fourth scrap merchant in Europe the steelmaker contracted to acquire in 2022 after Riwald Recycling, certain Alba International facilities, and John Lawrie Metals. The Polish transaction closing is subject to customary regulatory approvals and is expected during the first half of 2023.
Zlomex operates scrap yards in Krakow and Warsaw which last year processed and shipped almost 400,000 tonnes of ferrous scrap metal. ArcelorMittal’s Warszawa electric arc furnace mini-mill also based in Poland’s capital city uses predominantly scrap as feedstock.
Zlomex supplies a range of steel mills and has also been a long-standing supplier to ArcelorMittal’s steel plants in Dabrowa Gornicza and Warsaw. Zlomex is focused on ferrous scrap metal and in 2022 expanded its Krakow operations with the installation of a new shredder and separation equipment, and invested into an enlargement of its Warsaw yard.
“We have worked hard this year to secure greater access to the input materials we need for lowcarbon emissions steelmaking. Acquiring four specialist scrap metal recyclers during the year is a very positive development and will play an important role in enhancing our ability to deliver lowcarbon emissions steel,” ArcelorMittal Europe chief executive Geert Van Poelvoorde said in a note last week.