John Lawrie Metals bought by steel giant ArcelorMittal

Aberdeen-based metal recycling business John Lawrie Metals has been bought by steel giant ArcelorMittal for an undisclosed sum.

ArcelorMittal said it had acquired the Scottish firm as part of a drive to increase the use of scrap steel to lower CO2 emissions from steelmaking.

John Lawrie will continue to be run by its current management team.

The company sources about half of 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.

Managing director Dave Weston said: "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."

Geert Van Poelvoorde, chief executive of 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."