The Timken Company (NYSE:TKR) has snapped up “substantially all” of the assets of Ohio based City Scrap and Savlage, one of the company’s long term suppliers of ferrous scrap for its steelmaking operations.
The manufacturer of power transmission and friction management products stated that the acquisition was in keeping with its history of maintaining reliable resources required for its business. “In fact, the founding of Timken's steel business in 1917 traces back to the company's need for a dependable steel supply for its bearing business,” Timken’s noted to investors today.
Timken’s currently sources nearly all of its steel from recycled materials, hence the importance of ensuring one of its key suppliers continues to supply material.
The acquisition will be executed by Timken’s subsidiary TSB Metal Recycling LLC.
"For our plants, steel scrap sources are essential as we continue to expand our business," said William P. Bryan, director of supply chain and supply chain economics for Timken's steel group. "Acquiring City Scrap further ensures we have the resources needed to serve our customers now and in the future."
City Scrap had revenues of approximately $17 million in 2010.