Schnitzer restarts Cascade steel production; to buy Southeast scrap recycler

Schnitzer Steel has restarted production at its Cascade Steel Rolling Mills division in Oregon and has entered into a definitive agreement with Columbus Recycling to acquire eight of its scrap facilities across the Southeast US, the company said Aug. 17.

The Cascade mini-mill unit restarted production the week of Aug. 15 following the "substantial completion" of replacement and repairs of property and equipment at the mill's melt shop, which had been lost or damaged by a fire May 22, the company said.

"Cascade has resumed operations with a full workforce several weeks ahead of schedule and is accepting orders for its full range of finished steel products based on the rolling schedule," Schnitzer Steel said in a statement. "Due to the timing of the restart and the ramp up in operations, Cascade is expected to complete a limited number of sales prior to the end of August, the close of Schnitzer's fiscal year."

Cascade, located in McMinnville, Oregon, produces rebar, coiled rebar, wire rod, merchant bar and other specialty long products.

Southeast recycling operations

In addition to the restart, Schnitzer said it entered into a definitive agreement with Columbus Recycling Aug. 12 to acquire eight operating facilities across several states in the Southeast, including Mississippi, Tennessee and Kentucky.

"Combined with Schnitzer's nine existing facilities in Georgia, Alabama, and Tennessee, the acquired operations will offer additional recycling products, services, and logistics solutions to customers and suppliers across the Southeast, a region that is expected to see a significant increase in electric arc furnace steelmaking capacity in the coming years," the company said.

In the 12 months through the end of May, Columbus has delivered annual ferrous scrap sales volumes of roughly 300,000 lt which, on a pro-forma basis, would increase Schnitzer's total ferrous volumes by approximately 7% over the same period, according to the company.

The transaction is expected to close during the first quarter of Schnitzer's 2022 fiscal year, which runs through Nov. 30, subject to regulatory approvals, the company said.

Schnitzer expects to announce preliminary consolidated financial results for its fiscal 2021 fourth quarter during the second half of September, including an update on the financial impact of the melt shop fire at its steel mill and the status of the related insurance recoveries, it said.