Korea Zinc’s Subsidiary Pedalpoint Holdings Acquires Kataman Metals to Strengthen Global Scrap Metal Supply Chain

Pedalpoint Holdings, the U.S. subsidiary of Korea Zinc, has completed the acquisition of Kataman Metals, a distinguished global scrap metal trading company based in St. Louis, USA. The transaction, valued at USD 55 million, marks a strategic move to fortify Korea Zinc's resource recycling value chain and bolster its position in the global metal smelting and recycling industry.

Kataman Metals, recognized for its extensive experience and expertise in the recycling sector, trades approximately 300,000 tons of various scrap metals annually, with a strong emphasis on copper, aluminum, and iron. The company's proficiency in navigating the global market for scrap metal, coupled with its robust financial performance—averaging sales of USD 1.5 billion over the past three years—positions it as a pivotal player in the transition towards circular economies.

This acquisition is particularly timely as Korea Zinc is on the verge of completing the expansion of its copper production facilities at the Onsan Smelter by the first half of 2025. This expansion is anticipated to demand an additional 130,000 tons of copper scrap annually, aligning with Korea Zinc's commitment to reducing carbon emissions by utilizing secondary materials.

Korea Zinc's "Troika Drive" strategy, aimed at propelling the company's growth through recycling and resource circulation, is further solidified by this acquisition. By integrating Kataman Metals' network and expertise in scrap metal procurement with the existing operations of Igneo Holdings—an electronic waste recycling company previously acquired by Pedalpoint Holdings—Korea Zinc is poised to establish a comprehensive, circular value chain. This synergy promises to enhance the company's copper production to 150,000 tons annually, necessitating a steady supply of 300,000 tons of copper scrap.

The recent acquisition is viewed as a strategic completion of Korea Zinc's resource recycling value chain, connecting the dots from raw material procurement through electronic waste processing to final metal product manufacturing. Pedalpoint Holdings will focus on stabilizing and integrating the newly acquired business, aiming to reach a breakeven point with a positive operating profit by the end of 2024.