Nucor's recycling subsidiary David J Joseph (DJJ) sold its end-of-life vehicle business U-Pull-&-Pay to self-service used auto parts retail giant Pull-A-Part.
The sale includes 11 locations across seven states, increasing Atlanta-based Pull-A-Part's footprint to 36 locations in 16 states. Terms of the deal were not disclosed.
Locations include Colorado (Aurora, Colorado Springs, and Denver), Florida (West Palm Beach, Orlando, and Fort Myers), New Mexico (Albuquerque), Ohio (Cincinnati), Texas (Houston), Arizona (Phoenix) and Pennsylvania (Pittsburgh).
Nucor will retain ownership and operation of its two separate self-serve used auto parts locations in Indianapolis, Indiana, and Louisville, Kentucky.
Pull-A-Part intends to continue to operate U-Pull-&-Pay as a separate brand in its markets.
Self-service auto parts recyclers play an integral role in the automotive recycling supply chain by aggregating end-of-life vehicles and storing them, typically for 60-120 days during which used parts can be harvested for retail sale. After this period, the car bodies and remaining parts are processed, sold and shipped as the primary feed stock to automotive shredders.
Market sources indicated that the locations sold by DJJ were mostly outside Nucor's immediate steelmaking footprint.
Nucor did not immediately respond to a request for comment.
Pull-A-Part also sells used cars at 23 of its locations across the US.
DJJ operates over 70 facilities including at least 20 automobile shredders across the US.
Nucor posted a record second quarter profit of $2.56bn, up 70pc from a year earlier.
