News Releases
Schnitzer Steel Industries Acquires Puerto Rico Metals Recycler
PORTLAND, Ore., Feb 02, 2009 (BUSINESS WIRE) -- Schnitzer Steel Industries, Inc. (NASDAQ:SCHN), announced today that it
has acquired Ponce Resources, Inc., 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.
Commenting on the transaction, Don Hamaker, President of Schnitzer's
Metals Recycling Business, said, "We are pleased 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, and we are pleased to welcome Tjerk
Spijkerman, who will continue as Regional Manager, to the Schnitzer
team."
Tamara Lundgren, Schnitzer's President and CEO, 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 41 operating facilities located in 12 states throughout the
country, including seven export facilities located on both the East and
West Coasts and in Hawaii and Puerto Rico. 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.
SOURCE: Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc.
Investor Relations: Rob Stone, 503-224-9900)
Press Relations: Tom Zelenka, 503-323-2821
ir@schn.com
www.schnitzersteel.com