News Releases
Schnitzer Steel Industries Acquires Puerto Rico Metals Recycler
PORTLAND, Ore.--(BUSINESS WIRE)--Sept. 18, 2008--Schnitzer Steel
Industries, Inc. (NASDAQ: SCHN) announced today that it has signed a
definitive agreement to acquire Ponce Resources of Salinas, Puerto
Rico ("Ponce"). Ponce is engaged in the business of collecting,
processing, and selling ferrous and nonferrous scrap metal and
operates at four locations in the Commonwealth of Puerto Rico. The
acquisition is expected to close during Schnitzer's fiscal first
quarter of 2009.
Commenting on the agreement, John Carter, President and CEO of
Schnitzer said, "We are pleased to be able to acquire these
facilities, which will allow us to enter the Puerto Rico recycling
market with the premier operator in the Commonwealth. The government
and people of Puerto Rico have demonstrated a commitment to metals
recycling, and we look forward to working together to further expand
these activities."
"Ponce Resources has a long history of strong supplier and
customer relationships," said Johannes Schoo and Tjerk Spijkerman, who
along with Lennox Garden Investments are the sellers of the business.
"This enables us to join forces with a company that has a 100-year
history in the metals recycling business and is one of the largest
metals recyclers in the world."
Carter added, "This acquisition demonstrates our continued
confidence in the positive long-term fundamentals supporting our
Metals Recycling Business and the general public's desire for and
support of environmentally sustainable business activities, and is
consistent with our strategic objective of acquiring companies with an
established presence in their local markets, access to water-based
transportation and an experienced management team. We will continue to
seek opportunities to expand our metals recycling footprint, both in
existing markets and in new areas that meet these strategic
objectives."
Terms of the transaction were not announced.
Schnitzer Steel Industries, Inc. is one of the largest
manufacturers and exporters of recycled ferrous metal products in the
United States with 39 operating facilities located in 12 states
throughout the country, including six export facilities located on
both the East and West Coasts and in Hawaii. The Company's vertically
integrated operating platform also includes its auto parts and steel
manufacturing businesses. The Company's auto parts business sells used
auto parts through its 38 self-service facilities and 18 full-service
facilities located in 16 states and in western Canada. With an annual
production capacity of approximately 800,000 tons, the Company's steel
manufacturing business produces finished steel products, including
rebar, wire rod and other specialty products. The Company commenced
its 103rd year of operations in fiscal 2009.
This news release contains forward-looking statements, within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, (the "Exchange Act") which are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include, without limitation,
statements regarding the Company's outlook for the business. Such
statements can generally be identified because they contain "expect,"
"believe," "anticipate," "estimate" and other words that convey a
similar meaning. One can also identify these statements as statements
that do not relate strictly to historical or current facts. Examples
of factors affecting the Company that could cause actual results to
differ materially from current expectations are the following:
volatile supply and demand conditions affecting prices and volumes in
the markets for both the Company's products and the raw materials it
purchases; world economic conditions; world political conditions;
changes in federal and state income tax laws; government regulations
and environmental matters; impact of pending or new laws and
regulations regarding imports and exports into the United States and
other foreign countries; foreign currency fluctuations; competition;
seasonality, including weather; energy supplies; freight rates and
availability of transportation; loss of key personnel; expectations
regarding the Company's compliance program; the inability to obtain
sufficient quantities of scrap metal to support current orders;
purchase price estimates made during acquisitions; business
integration issues relating to acquisitions of businesses; new
accounting pronouncements; availability of capital resources;
creditworthiness of suppliers and customers; and business disruptions
resulting from installation or replacement of major capital assets, as
discussed in more detail in "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the Company's most
recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q.
One should understand that it is not possible to predict or identify
all factors that could cause actual results to differ from the
Company's forward-looking statements. Consequently, the reader should
not consider any such list to be a complete statement of all potential
risks or uncertainties. The Company does not assume any obligation to
update any forward-looking statement.
CONTACT: Schnitzer Steel Industries, Inc.
Media Contact
Tom Zelenka, 503-323-2821
or
Investor Relations
Rob Stone, 503-224-9900
www.schnitzersteel.com
SOURCE: Schnitzer Steel Industries, Inc.