An Indian multibillionaire who was once ranked third richest person in the world now owns more than one-third of Aberdeen firm John Lawrie Metals (JLM).
Lakshmi Mittal’s interest in the metal recycling business is thanks to his family’s large stake in multinational steel-making giant ArcelorMittal.
It has just acquired JLM from private equity company Rubicon Partners for an undisclosed sum.
JLM’s green credentials were a key driver for the takeover, with Luxembourg-headquartered ArcelorMittal keen to fast-track a reduction of its own carbon footprint.
Founded in the 1930s by metal merchant John Lawrie, JLM is a consolidator of ferrous scrap metal, exporting to steel producers mainly in western Europe.
The company sources about half its material from the oil and gas market.
Supplies of scrap are expected to grow significantly over the next decade, due to a growing number of infrastructure decommissioning projects in the North Sea.
As part of ArcelorMittal, JLM will continue to be run by its existing management team.
This is led by managing director Dave Weston and chief financial officer Charlie Parker.
Mr 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.
“Our objectives are aligned, and we will continue to focus our drive on providing an end-to-end closed loop service to our suppliers for the removal, recycling and repurposing of industrial metals.”
A spokeswoman for JLM, which is building an oil and gas infrastructure decommissioning facility in Montrose, said it would be business as usual for the company and its 43-strong workforce.
ArcelorMittal Europe chief executive Geert Van Poelvoorde 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.
“We are, therefore, very pleased to announce the acquisition of John Lawrie Metals, which represents a further step in our strategy to increase the use of scrap steel across our steelmaking sites.”
ArcelorMittal employs about 168,000 employees across steel-making operations in 17 countries.
Mr Mittal, 71, is its executive chairman, and his son, Aditya, is chief executive.
Aditya’s sister, Vanisha Mittal Bhatia, is also on ArcelorMittal’s board as a non-independent director.
She and her husband, Amit Bhatia, broke records with their lavish wedding in 2004.
Their nuptials were worth an estimated £45m, with the bride’s wedding dress among the most expensive on record.
Six days of wedding festivities in France included a private performance by Kylie Minogue and an Eiffel Tower fireworks display.
ArcelorMittal’s septuagenarian chairman has also broken a few records with his property purchases over the years.
In 2004 he bought a home in Kensington Palace Gardens, London, for £67m.
It was previously owned by Formula One boss Bernie Ecclestone and its price tag at the time of sale made it the world’s most expensive house.
He later went on to build the most expensive mansion in Scotland – at a cost of about £15m – next to Gleneagles golf resort in Perthshire.
Richest of the rich
Mr Mittal, who owned a majority stake in his former Mittal business, spent many years at the top of the annual Sunday Times Rich List of the UK’s wealthiest people.
He and his family are currently ranked fifth on the list, with an estimated fortune of £14.68 billion.
As well as JLM, the multibillionaire’s business interests include a 20% stake in London football club Queens Park Rangers. His son-in-law is the club’s chairman.
