OneSteel purchases scrap metal business ,collects 30,000 tonnes of non-ferrous scrap each year.

OneSteel Ltd has signed an agreement to acquire a scrap metal recycler with operations in New South Wales and Victoria.

OneSteel said on Monday the agreement would see its recycling business purchase Metals Trading, which collects about 120,000 tonnes of ferrous scrap and 30,000 tonnes of non-ferrous scrap each year.

Metals Trading owns two scrap yards in Sydney and two in Melbourne, as well as a regional yard in each state.

It is currently a supplier of OneSteel's recycling business.

The acquisition agreement remains subject to approval from the Australian Competition and Consumer Commission.

"Metals Trading is a good strategic fit for our recycling business because of the location of its sites as well as the increased confidence it provides us over the sourcing of supply of scrap metal," OneSteel managing director Mr Geoff Plummer said.