August 2005
Service Center News


National Tube Supply Launches Expansion
National Tube Supply Co. began construction on a $4.2 million expansion on its 25-acre site in University Park, Ill., just south of Chicago. The company is adding 90,000 square feet of warehouse space and 3,500 square feet of office space to the east side of its existing 160,000-square-foot facility. Completion is expected in late October.

NTS stocks hot-finished seamless carbon/alloy mechanical tubing, pipe, drawn-over-mandrel mechanical tubing, and cold-drawn seamless carbon tubing.
“With increasing production demands and growing needs for material storage, a significant expansion became imperative,” explains Gary Chess, president and CEO. “In addition to increased storage, another big change taking place is in our tube-cutting capabilities, both in diameter and volume.”

Four new band saws are being added to six existing saws—three for cutting 16-inch OD tubing and one for cutting 26-inch OD tubing. Officials are considering adding lathe-cutting capability next year.

NTS will also triple its upright storage system for DOM tubing in its cantilever rack positions. “We will be much more efficient and reliable in order filling as this change will allow us to fully utilize our DOM order processing station,” Chess says. “By expanding and increasing our storage capabilities in racks, we will be able to pull every order in a matter of minutes.”

Greater indoor storage will eliminate all outside storage of HFS tubing. The expansion will also allow for improved temperature control. The company is adding insulation and heat for winter control, and a series of rooftop exhaust fans for summer ventilation.

NTS will build an extra receiving truck lane and two shipping lanes, doubling shipping dock capacity. One new crane was already installed, and another outside crane has been moved indoors, making nine overhead cranes that can dual hoist up to 10 tons each.

Chess expects the expansion will better position NTS to pursue new customers and markets, both from a geographic and product perspective. Regional metals service centers use NTS as a depot for their inventories. NTS also serves as a supplier for companies that make metal parts for a myriad of applications. Primary markets are construction, agricultural, mining and drilling equipment, and fluid power.

Norfolk Iron, Steel Warehouse
Create JV Processing Firm

Norfolk Iron and Metal Co., Norfolk, Neb., and Steel Warehouse Co., South Bend, Ind., have formed a new joint venture company named Steel Processing Center LLC (SPC). The enterprise began operating in August in Rock Island, Ill., where Steel Warehouse has its Quad Cities branch.

The SPC flat-rolled processing line features an in-tandem flattener and leveler to accommodate the temper-passed sheet and plate needs of customers. The temper mill and leveling line will cut to length steel from 0.06- to 0.50-inch thick, 22 to 72 inches wide at lengths from 2 to 50 feet.

The line uses a continuous double bow-tie rotary shear to provide close tolerances, an unblemished cut and a high-quality, value-added product for trouble-free processing.

Having the CTL shear in line with the temper pass helps eliminates coil memory, improves surface finish and allows for closer gauge, flatness and shape tolerances, according to company officials.

Edgen Acquires Alloy Pipe Distributor
Edgen Canada Inc., a subsidiary of Edgen Corp., Baton Rouge, La., has acquired the common stock of Western Flow Products Inc., Edmonton, Alberta.

“We are excited about the Western Flow acquisition and the opportunity for geographical expansion into the Canadian marketplace,” says Dan O’Leary, Edgen’s president and CEO. “This acquisition brings outstanding personnel to our organization and allows us to broaden the products available to our Canadian customers.”

Western Flow is a specialty alloy pipe and components distributor primarily to the oil and gas, processing and power generation industries. The operations of Western Flow are being merged into Edgen Canada Inc.

Red Man Pipe Acquires Majority
of Canadian Service Center Chain

Red Man Pipe & Supply Co. has purchased the majority ownership of Midfield Supply Ltd., a privately held corporation based in Brooks, Alberta.

Midfield has 44 locations in Alberta, 11 in Saskatchewan, and two in British Columbia, all serving the energy industry in Central and Western Canada. In addition to the Canadian locations, Midfield operates one branch in Montana. The company will operate under the name of Midfield Supply Company in Canada.

Craig Ketchum, president and CEO of Red Man Pipe, says Midfield will enhance Red Man’s strength in North America, providing energy, gas transmission and distribution industries with its extensive product base and experienced personnel.

Midfield broadens the geographic base for Red Man. Its wide range of products and services include comprehensive lines of pipe, valves, fittings and other products used in the energy industry. The company also manufactures process equipment and tanks, and offers installation, reconditioning and consulting services in addition to warehousing functions.

Schuff Buys Kansas Fabricator
Schuff Steel Co. has purchased a steel fabrication plant and certain other assets of Kansas City, Mo.-based Havens Steel Co. for $4.5 million in cash. The 153,600-square-foot facility in Ottawa, Kan., has an annual capacity of more than 30,000 tons of specialty fabricated steel. Schuff hired more than 100 former Havens Steel employees to work at the plant.

“The Ottawa facility will expand Schuff’s capacity, allowing us to better service our growing customer base, especially in the Southwest, Colorado and southern California. The Midwest location opens up new markets for us,” says Scott A. Schuff, president and CEO.

As the sole qualifying bidder in a Chapter 11 auction, Schuff received approval of the purchase July 15 from the U.S. Bankruptcy Court. As part of a lease agreement previously approved by the court, Schuff agreed to complete certain fabrication services for the Phoenix Convention Center’s expansion project, honoring Havens Steel’s existing contract.

Briefs
Reliance Steel & Aluminum Co. completed its acquisition July 5 of Chapel Steel Corp., Spring House, Pa. Reliance paid $94.2 million in cash and assumed about $16.8 million of debt for all of the outstanding common stock of Chapel, a privately held metal center operator founded in 1972. Existing managers and employees remain in place, with James R. Sutow serving as president and chief operating officer. Reliance CEO David H. Hannah says Chapel will help Reliance broaden and strengthen its product offerings, add new customers and fit well with existing domestic operations.

McNichols Co., Tampa, Fla., opened its newest—and first international—steel service center in the Santa Catarina area of Monterrey, Mexico. The 18,000-square-foot branch will supply hole products to industries such as oil and gas, automotive, power generation, civil construction, architecture, electronics, maintenance and repair and other distributors. President Herb Goetschius says the company has had a local sales office in Monterrey since 2003, but the new full-service facility “will allow us to bring our inventory, fabrication services and same-day shipping guarantee to the growing Mexican market.”

Metal Supermarkets, Brampton, Ontario, celebrates its 20th anniversary this year. Founded in 1985, the convenience mart-style service center chain specializes in small-quantity orders and cut-to-order service for all kinds of customers, even walk-ins. Since it began franchising in 1987, Metal Supermarkets has grown to 83 locations worldwide, with 43 stores in the United States, 28 in Canada, plus stores in England, Scotland, Austria and the United Arab Emirates. Systemwide sales reached $75 million in 2004. Metal Supermarkets plans to open two corporate-owned stores in the Chicago area this year and four to five franchised locations in the U.S. within 12 months.

United Steelworkers Local 8782 ratified a new, three-year collective agreement with the Nelson Steel metal processing plant owned by Samuel Manu-Tech Inc. The agreement boosts wages by $1.75 an hour over three years, bringing the average hourly wage to $26 by the end of the contract period. The contract includes an improved pension base rate, increases in short-term disability coverage and a long-term disability plan, among other benefits.

Gibraltar Industries’ strip steel manufacturing facility in Cleveland is now operating on the Axiom Enterprise Resource Management System from AXIS Computer Systems Inc., which makes ERP software solutions for the metals industry. The plant produces cold-rolled strip steel used in applications that demand precise widths, improved surface conditions and tight gauge tolerances. Cleveland is the largest of three facilities that make up Gibraltar’s Processed Metals Group, all of which are scheduled to be live on the new system this year.

Russel Metals declared a dividend of Cdn 25 cents per common share, payable Sept. 15 to shareholders of record by Aug. 9.

MAS Industries, Wallingford, Conn., has won a $70 million, 10-year contract to supply more than 250 marine and aviation insulation items for Shore Immediate Maintenance Activity (SIMA)/ Fleet Industrial Supply. The contract was awarded by DOD’s Defense Supply Center in Columbus, Ohio. MAS will supply thermal and acoustic insulation and related items for naval bases through government and private shipyards from seven locations. MAS also distributes specially welded plate, sheet and extrusion products for shipbuilding.

Douglas Steel, a Vernon, Calif., service center, has installed a second high-speed multi-cut blanking line from Red Bud Industries. The 60-inch-wide, 0.25-inch line consists of a coil car, uncoiler, Bradbury hydraulic leveler with Flat Trak system, inspection table, dual-action grip feed, expandable arbor slitter, single-point adjustable shear, and a combination drop/strip/air flotation stacker with a pallet loader and discharge conveyors.

Servilamina Summit Mexicana S.A. de C.V., Queretaro, Mexico, has installed a new single-loop Braner/Loopco coil slitting line and automatic slit-coil packaging line. The slitting line can process 25-ton coils at 60 inches wide in material thickness from 0.25 to 0.024-inch.

The Global Institute of Logistics recently recognized ADS Logistics, Homewood, Ill., as the leading provider of specialist logistics services for 2005. The institute’s research department examines providers operating in the logistics sector and establishes its choice of the leading third-party logistics services. This is the first year the institute awarded a prize for a specialist. ADS focuses on the metals industry and the expertise it has developed marks the company out in that sector. ADS handles 5 million tons of steel and aluminum a year, over 300,000 transport (truck, rail, water, rail) movements and has the only temperature- and humidity-controlled, rail-served national warehouse network. The company also offers a proprietary software/Internet system, LoMAS, used to manage integrated supply chains.

Standard Metals Inc., Hartford, Conn., celebrated its 25th anniversary June 30. Founder and owner A. Stephen Buzash thanked past and current customers, suppliers and employees for their loyalty.

Marmon/Keystone Corp. recognized four suppliers for achieving perfect performance for on-time delivery, zero defects and outstanding service: TEKTube in Tulsa, Okla., Nucor Steel in Plymouth, Utah, Southland Tube Inc. in Birmingham, Ala., and Gibson Tube in North Branch, N.J.

Formtek Metal Forming Inc., a provider of roll forming and tooling solutions, has acquired the operating assets of Tishken Products Co., Detroit, which makes roll-forming machines, edge conditioning machines, strip thickness sizing machines, carbide saw-mill machines, cutoff presses, roll form tooling and dies. This addition expands Formtek’s product offering, including service and aftermarket support of the equipment.

Red Bud Industries’ Tech Support will host a coil processing workshop Sept. 20 at the Sheraton St. Louis City Center Hotel & Suites, St. Louis, Mo., for service center shop operators. Topics include close tolerance blanking and multi-blanking, slitting, “SCS to Replace P&O and CRS Material,” and advances in processing equipment. Speakers will include consultant Eric Theis, formally of Herr-Voss, and Harold Kerns, a slitting and shearing expert.

People
Bill Bennett has resigned as senior vice president of Metals USA Inc. and as president of the Plates & Shapes Group, but will remain with the company as assistant to the CEO, Lourenço Goncalves, until the company is acquired by Apollo Management later this quarter. Joe Longo was appointed president of Plates & Shapes-East, and David Martens was named president of Plates & Shapes-West. Longo and Martens have each held leadership posts within the company during the past several years and each has more than 20 years of industry experience.

H. Wayne Ferguson, founder and president of Ferguson Metals, was named 2005 Small Business Person of the Year by the Greater Hamilton (Ohio) Chamber of Commerce. Recipients are chosen based on their contribution to the community and role in making Hamilton a great place to live and work. Ferguson employs 77 people in Butler County. He sits on the advisory board of Butler Technology Career and Development Schools. The company sponsors community events and enrolls senior managers in a program that helps local business leaders become familiar withlocal government.

O’Neal Steel appointed Craig Colyer to national product manager for aluminum and stainless steel. He will develop and coordinate marketing and sales initiatives for all of O’Neal’s aluminum and stainless products. Colyer has 22 years of experience in the service center industry.

Novamerican Steel Inc., Montreal, elected Robert Panet-Raymond to a seat on the board of directors. He was a senior officer with the Canadian Imperial Bank of Commerce for 13 years.

Totten Tubes Inc. appointed Tracy N. Totten as president, succeeding David M. Totten, who was named chairman. Jeffrey A. Totten continues as vice president and treasurer. Tracy Totten has been with the company for 29 years, having served as sales manager for many years.

James D. Cottrill has joined Marmon/Keystone Corp. as an account manager with the Chicago (Bolingbrook) service center, calling on customers in southeast Wisconsin. He has steel industry experience in sales, inventory control and account management. James Kelley joined the company as an inside salesman in the New Castle, Del., service center. He previously held jobs in sales and customer service in the manufacturing, facilities management and information technology sectors.

Almetals Co., Wixom, Mich., honored employees for their service recently. Accounting manager Jackie Sawle was recognized for 20 years; J.W. Chain, for 10 years. Chain works in purchasing, inside sales and as a marketing manager. Production associate Dale Shaw was also honored for 10 years of service.

Marmon/Keystone Corp. re-ports that 10 of its truck drivers were awarded for meeting the requirements of the company’s Driver Safety Awareness Program for 2004. They are Thomas Campbell, Patrick Buzzard, James Henry and Joe Morter, all at East Butler, Pa.; Steve Holliday, Birmingham; Craig Marsh and Chris Faulkner, Salt Lake City; Ken Gillen, Temperance, Mich.; Dave Brower, New Castle, Del.; and Art Regalado, Los Angeles.

 

 

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