Furthermore, throughout our entire footprint, Cleveland-Cliffs also consumes a very significant amount of scrap in our EAFs and BOFs. As the largest supplier of flat rolled steel in North America, Cleveland-Cliffs is the main source of the steel that generates prime scrap in manufacturing facilities. With all the new flat-rolled EAF capacity coming online in our market over the next four years, prime scrap will only become more and more scarce. Even more importantly, FPT has a very meaningful presence in prime scrap. Lourenco Goncalves, Cleveland-Cliffs’ Chairman, President and CEO said, “Cleveland-Cliffs is entering the scrap business as a major player through the acquisition of a large scrap company.
FPT was Fastmarkets’ 2019 winner of Scrap Company of the Year. FPT already enjoys an outsized position in automotive and industrial scrap, which is expected to grow as part of Cleveland-Cliffs. In the trailing twelve months ended August 31, 2021, FPT generated EBITDA of approximately $100 million. FPT currently processes approximately three million tons of scrap per year, approximately half of which is prime grade.įPT operates 22 scrap processing facilities, with approximately 90% of revenues originating from its Midwest locations, primarily in Michigan and Ohio. Based in Detroit, FPT is among the largest processors and distributors of prime ferrous scrap in the United States, representing approximately 15% of the domestic merchant prime scrap market. (the “Company”) (NYSE: CLF) announced today that it has entered into a definitive agreement to acquire Ferrous Processing and Trading Company, including certain related entities (“FPT”), for a total enterprise value of approximately $775 million, on a cash-free, debt-free basis and subject to customary adjustment (“the FPT Acquisition”). CLEVELAND-( BUSINESS WIRE)-Cleveland-Cliffs Inc.
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