Steel Dynamics Inc. entered into a definitive agreement to acquire Zimmer, S.A. de C.V. as part of its raw-material procurement strategy to support its new Texas flat-roll steel mill, which is currently under construction and expected to begin operations in 2021. Zimmer is headquartered in Monterrey, Mexico, and operates a ferrous and nonferrous scrap metals recycling business. The company's primary operations are comprised of six scrap-processing facilities that currently ship approximately 500,000 gross tons of scrap annually and have an estimated annual processing capability of approximately 2 million gross tons. Zimmer also operates several third-party scrap-processing locations.

According to Steel Dynamics, the addition of Zimmer provides an expanded commercial presence in the region and strengthens its raw-material supply strategy, allowing for cost-effective ferrous scrap procurement for the Texas flat-roll steel mill.