Calling steel “the next precious metal”, Cleveland-Cliffs, a major producer of electrical steel for motors and transformers, has acquired Ferrous Processing & Trading Company. The scrap steel recycler adds a new dimension to the relentless pursuit of vertical integration by Cliffs which in 2020 acquired electrical steel maker AK Steel.
FPT is a leading prime ferrous scrap processor in the United States. It processes about three million tons of scrap per year, approximately half of which is prime grade, and operates 21 sites. Cliffs expects to grow its prime scrap presence through its existing relationships with industrial steel consumers.
“The way the scrap business historically worked has now changed for good. With our closing of the FPT acquisition, we are now immediately focused on amplifying the value of what we believe is the next precious metal,” said Lourenco Goncalves, CEO of Cliffs. “To drive this, we have already begun the dialogue with our steel customers with a focus on increasing our scrap offtake from them under a real closed-loop proposition. We are starting from a position of strength with the existing business that FPT has in place and are excited to expand upon this core using the FPT scalable footprint.”
Headquartered in Cleveland, Ohio and now employing more than 25,000 people, Cliffs is the largest flat-rolled steel producer in North America and the largest supplier of steel to the automotive industry in North America. See www.clevelandcliffs.com.