ArcelorMittal has acquired Scottish metal recycling business John Lawrie Metals Ltd as part of the company’s strategy of increasing the use of scrap steel to lower CO2
emissions from steelmaking.
The deal was completed on 28 February 2022 and the business will continue to be run by the current management team, including Dave Weston, Managing Director and Charlie Parker, CFO.
Dave Weston commented: “Over the last four years we have been pushing the boundaries of metal recycling and reuse, building strategic relationships with our customers and suppliers as we go with the aim of reducing carbon emissions and supporting sustainability goals.
“We are proud to be the first metal recycling business in Europe to be purchased by ArcelorMittal as part of their decarbonisation strategy. Our objectives are aligned, and we will continue to focus our drive on providing an end-to-end closed loop service to our suppliers for the removal, recycling and repurposing of industrial metals.”
John Lawrie Metals has unique access to diversified sources of high-quality scrap steel from the UK’s oil and gas industry.
The company sources around half its material from the oil and gas market; with decommissioning of oil and gas wells in the North Sea increasing due to the energy transition, supplies of scrap are expected to grow significantly over the next decade.
Geert Van Poelvoorde, CEO ArcelorMittal Europe said: “We have identified strong potential for growth in the ferrous scrap processing business, with demand growth in Europe facilitated by the European Union’s initiatives to achieve higher metal recycling rates, reduce CO2
emissions and underpin the EU’s net-zero ambitions.
"We are therefore very pleased to announce the acquisition of John Lawrie Metals, which represents a further step in our strategy to increase the use of scrap steel across our steelmaking sites.”
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 18 countries.
The company is chaired by Indian steel magnate Lakshmi Mittal, who has a net worth of over $18billion according to Forbes. He also owns a 20% stake in English Championship side Queens Park Rangers.
In 2019, ArcelorMittal had revenues of $70.6billion and crude steel production of 89.8million metric tonnes, while iron ore production reached 57.1million metric tonnes.