The deal for the British Metals Recycling Association (BMRA) member forms part of ArcelorMittal’s “decarbonisation strategy” and was completed on 28 February.
John Lawrie Metals Ltd will continue to be run by its current management team including managing director Dave Weston and CFO Charlie Parker.
The move is part of ArcelorMittal’s initiative to lower CO2 emissions from steelmaking by increasing the use of scrap metal.
‘Aligned objectives’
According to Mr Weston, the metal recycling company has been “pushing the boundaries of recycling and reuse with the aim of reducing carbon emission and supporting sustainability goals”.
He added: “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 sources around half of its material from the UK’s oil and gas market, giving it unique access to diversified sources of high-quality scrap steel.
As a result of increased decommissioning of oil and gas wells in the North Sea due to the energy transition, supplies of scrap are expected to grow significantly over the next decade.
On its website, Jon Lawrie Metals says it is the largest metal recycler in the North-East of Scotland, handling around 200,000 tonnes of metal annually, across three sites in Scotland.
‘Net-zero ambitions’
Geert Van Poelvoorde, CEO at ArcelorMittal Europe, said “there is strong potential for growth in the ferrous scrap processing business”.
The growing demand in Europe is facilitated by the European Union’s initiatives to increase metal recycling rates as well as reduce CO2 emissions and underpin the EU’s net-zero ambitions, he concluded.
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