Sanmar Group acquires Matrix Metals

Recyclingtoday.com reported that integrated industrial, shipping and engineering firm Sanmar Group has successfully acquired Matrix Metals LLC from Jefferies Capital Partners. The acquisition of Matrix Metals follows Sanmar's acquisition of a German alloy castings producer Eisenwerk Erla GmbH in 2007. 

Matrix Metals operates one of the largest steel casting businesses in North America. Sanmar Group has a steel casting capacity of 60,000 tonnes and about 50,000 tonnes of capacity for premium iron alloy castings. Matrix has foundries in Keokuk, Iowa, Richmond, Texas and San Juan del Rio, Mexico, which focus on castings for flow control, locomotive, mining, farm equipment, heavy construction and oilfield equipment sectors. According to news reports the 3 facilities have a combined capacity of 30,000 tons a year.

Following the merger, Mr B Natraj corporate director of Sanmar Group will relocate to the United States and serve as executive vice chairman of Matrix Metals.

Mr Roger Courtney CEO of Matrix Metals said that "Combining Sanmar's expanding foundry capacity with ours will enable us to meet almost any North American customer's casting requirements and create new business opportunities across the combined companies." 

The Sanmar Group is in the middle of a capital expenditure program in India. The group is investing more than USD 26 million to expand the capacity of the steel foundry from 10,000 tonnes to 30,000 tonnes a year by adding three automated lines for sand castings.