Ohio-based integrated steelmaker Cleveland-Cliffs has announced the signing of a definitive agreement to acquire Detroit-based Ferrous Processing and Trading Co (FPT) for approximately $775 million.
The company currently has 22 scrap processing facilities. In addition, FPT currently processes about 3 million tons of scrap per year, about half of which is top quality ferrous scrap.
In addition, the company has ranked as the ninth largest ferrous scrap processing company in North America and also the ninth largest non-ferrous processing company that also operates shredding plants. In addition, FPT has automated shredding locations in Florida, Michigan, Ohio and Ontario, Canada.
According to Cleveland-Cliffs, FPT is %22one of the largest processors and distributors of premium ferrous scrap in the United States, representing approximately 15 percent of the commercial premium scrap market.%22
%22Cleveland-Cliffs is entering the scrap business as a major player through the acquisition of a large scrap company,%22 states Lourenco Goncalves, president and CEO of Cleveland-Cliffs, adding that %22with all the new EAF rolled EAF capacity coming online in our market over the next four years, prime scrap will become increasingly scarce.
