Feb 2 2006
Smorgon Steel Group Limited has acquired the operating assets of ITI, Inc. and Steelport of Florida, Inc. (together, ITI). ITI operates a metal recycling business in the USA with collection and processing facilities at Norfolk, Virginia and Tampa, Florida.
In announcing the acquisition, Smorgon Steel’s Managing Director and CEO, Ray Horsburgh, said “Our stated corporate strategy includes the expansion of our metal recycling business both within the Asia / Pacific region and into more mature markets. The ITI business meets our strategic criteria and represents our second major presence in metal recycling outside Australia.
He added “While acquisition of the ITI assets represents an important step towards achieving our strategic objectives, we continue to evaluate other metal recycling opportunities in targeted parts of the global market that fit our criteria.”
ITI presently handles approximately 100,000 tonnes of ferrous scrap annually. Shane Grice, Chief Executive of Smorgon Steel Recycling said “The ITI acquisition is attractive in its own right and we believe the longer term outlook for metal recycling globally, combined with our plans for the business, will increase returns over the next few years.
“Both Norfolk and Tampa operations are located close to high quality port facilities that enable ready access to export markets, which is an important element of our strategy”, Mr. Grice added.
The business will continue to be managed by the existing strong management team and will report to Shane Grice.
The acquisition, the price of which is not disclosed, will be funded using debt facilities and will contribute to earnings in the first year of ownership.