OneSteel Ltd
(ASX:OST) has signed an agreement to acquire scrap metal recycler Metals Trading.
Currently a supplier to OneSteel’s recycling business, Metals Trading owns two scrap yards in Sydney and two in Melbourne, as well as regional yards in both NSW and Victoria.
The recycler collects about 120,000 tonnes of ferrous scrap and 30,000 tonnes of non-ferrous scrap each year.
The acquisition agreement remains subject to approval from the ACCC.
OneSteel Managing Director Geoff Plummer says Metals Trading is a good strategic fit for its recycling business because of the location of its sites and the increased confidence it provides over the sourcing of supply of scrap metal.
Along with its Australian manufacturing operations, the company has over 40 operating facilities in New Zealand, Asia and the Pacific.
It also operates eight facilities in the US.
OneSteel posted a profit of $229.5 million for the 2009 financial year.
