Big River Steel (BRS) has entered an agreement with Koch Metallics, LLC (Koch), a subsidiary of Koch Minerals & Trading, LLC, under which Koch will act as the exclusive agent to Big River Steel for metallics procurement. This new strategic partnership will allow BRS to further improve metallics procurement by leveraging Koch’s networks, capabilities and potential for providing additional services in support of BRS’s growth initiatives.
“Koch is a significant investor in Big River Steel, and I look forward to broadening our relationship as we jointly advance in the metallics space,” said Dave Stickler, chief executive officer of Big River Steel. “Entering into this agreement will accelerate several initiatives Big River Steel has underway that provide alternatives to the ways metallics and flat-rolled steel have historically been bought and sold.”
Koch is a global supplier of bulk materials, supported by its parent Koch Resources with an S&P credit rating of AA-, and world class capabilities in vessel, barge, rail, and truck transportation, as well as bulk material handling. These capabilities position BRS for improved earnings by providing scale and efficiency gains, thereby reducing raw material costs.
Big River Steel currently operates a LEED (Leadership in Environmental and Energy Design) certified, technologically advanced scrap metal recycling and flat-rolled steel production facility in Osceola, Arkansas, USA. The company is in the process of doubling its annual steel production capacity from 1.65Mt to 3.3Mt. The capacity expansion continues ahead of schedule and is expected to be completed prior to the end of the year, more than two months ahead of expectations.
Martin Baker, Big River’s metallics procurement manager, will join the Koch team as metallics procurement and conversion manager. “Martin is a proven professional and I am fully confident that Martin joining the Koch team will lead to new and expanded relationships with forward thinking domestic and international metallics providers and steel consumers,” said Stickler.