Schnitzer Announces the Acquisition of Encore Recycling’s Operating Assets in the Atlanta Metro Area

Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) is pleased to announce that it has purchased the operating assets of Encore Recycling LLC (Encore) in the greater Atlanta Metro area. The acquisition closed on April 29^th and encompasses two full-service recycling facilities, including a metal shredding operation and recycled auto-parts center.

Founded in 2013, Encore has a well-established customer-focused business that purchases and processes end-of-life vehicles, appliances, and additional ferrous and nonferrous materials from local recycling companies and industrial, commercial, and individual customers. Encore sells its recycled products to steel mills and foundries throughout the Southeast, the fastest growing steel and industrial manufacturing region in the country.

The acquisition of Encore’s assets follows Schnitzer’s 2021 purchase of eight recycling facilities from Columbus Recycling and expands the Company’s Southeastern regional footprint to 24 recycling facilities across Alabama, Georgia, Kentucky, Mississippi, and Tennessee. The integration of the Encore assets into the Schnitzer operating model will enable the Company to provide additional products, services, and logistics solutions to customers and suppliers across the Southeast. In 2021, the Encore facilities processed approximately 90,000 ferrous tons, 14 million nonferrous pounds, and 20,000 end-of life vehicles. In furtherance of its commitment to sustainable operations, Schnitzer plans to make capital and other investments at the acquired facilities, including for environmental projects and programs such as a shredder enclosure and emission control system, stormwater infrastructure upgrades, and implementation of a U.S. Environmental Protection Agency approved refrigerant recovery management program.

Tamara Lundgren, Chairman and Chief Executive Officer of Schnitzer Steel Industries, stated, “The acquisition of Encore will expand our platform and offerings in the robust Southeast market by establishing our first shredding operation in the region with immediate scale and meaningful synergies. This purchase builds upon our recent strategic investments including our recently opened state-of-the-art heavy media plant in Macon, GA, and the purchase of eight recycling facilities from Columbus Recycling last October. The addition of the Encore assets is consistent with our growth strategy to expand metals recycling operations to meet anticipated increases in steel and nonferrous metals demand driven in part by the global transition to low carbon technologies. While a variety of solutions will be required as industries, communities, and governments actively pursue carbon reduction, the increased use of recycled metals is one path that is immediately achievable.”

Ms. Lundgren continued, “We look forward to welcoming the Encore team to the Schnitzer family, as we continue to grow our recycling operations responsibly and sustainably for our customers, suppliers, and the communities in which we operate.”

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled metal products in North America with operating facilities located in 25 states, Puerto Rico, and Western Canada. Schnitzer has seven deep water export facilities located on both the East and West Coasts and in Hawaii and Puerto Rico. The Company’s integrated operating platform also includes 50 stores which sell serviceable used auto parts from salvaged vehicles and receive over 4.3 million annual retail visits. The Company’s steel manufacturing operations produce finished steel products, including rebar, wire rod and other specialty products. The Company began operations in 1906 in Portland, Oregon.

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