October 2005
Service Center News


Ports of Houston,
New Orleans Reopen

The Port of Houston Authority reopened Sept. 27 for commercial trucks assigned to transport cargo in or out of the facilities, but PHA was waiting until the U.S. Coast Guard opened the Houston Ship Channel before receiving commercial vessels and barges.

A preliminary assessment shows the port facilities sustained minimal damage from Hurricane Rita.

The Port of New Orleans reopened Sept. 26, a day after the Mississippi River was reopened following the latest Category 3 hurricane.

Several ships carrying steel and aluminum cargo had arrived in New Orleans the previous week and stayed in port during the storm. Port workers began loading and unloading ship cargoes on Sept. 26.

“Hurricane Rita caused us to lose a few days of work and some of the momentum that we had gained since Hurricane Katrina,” Port President and CEO Gary LaGrange says. “Despite this minor setback, we are still on track to have this port operating at 80 to 100 percent of our normal activity before March 2006.”

Gibraltar Further Diversifies With
3 Major Acquisitions

Gibraltar Industries Inc. announced the purchase of two companies and building product assets during September.

First, the company spent $240 million to acquire Alabama Metal Industries Corp. (Amico), a well-known manufacturer of products that go into the industrial and building markets, from CGW Southeast Partners, a private equity investment firm in Atlanta, and other investors. The transaction closed Oct. 3.

Founded in 1939, Amico had sales of $285 million last year. It operates 19 manufacturing and distribution facilities in 12 states and Canada, and has 900 employees. Amico makes metal bar grating, expanded and perforated metal, metal lathe, fiberglass and safety/plank grating, and other products that are used in industrial and construction applications.

Amico’s senior managers will continue to run the company day to day as a wholly owned Gibraltar subsidiary within its Building Products group.

“The steel-based manufacturing technologies of Amico are directly linked to our core manufacturing competencies, so we are confident in our ability to integrate and manage Amico,” says Brian J. Lipke, Gibraltar’s chairman and chief executive officer.

Second, Gibraltar has acquired a manufacturing facility in Suzhou, China, (about 60 miles west of Shanghai) that produces copper and copper alloy-based powder metal products. The facility will operate as part of Gibraltar’s SCM Metal Products affiliate. Terms of the acquisition were withheld.

The Suzhou facility, built only a year ago, will be able to support sales of about $20 million by 2007. Its products are primarily sold to the powder metallurgy and thermal management industries.

The acquisition gives Gibraltar an “on-the-ground presence in the center of the rapidly growing Chinese industrial market. It is an excellent complement to our existing SCM operations,” says Carl Spezio, group president, Gibraltar Thermal Processing.

Lastly, Gibraltar acquired the Gutter Helmet product line from Hart & Cooley, for an undisclosed price. It will become part of Gibraltar Building Products. Gutter Helmet, whose sales reached $16 million last year, complements Gibraltar’s Weather Guard products, acquired in 1999.

Macsteel USA Acquires
Alpha Processing

Macsteel Service Centers USA, Newport Beach, Calif., has purchased the business and assets of Alpha Processing Inc., Chicago, from Paul H. Athens and other investors. Terms of the sale were withheld.

Alpha Processing gives Macsteel the ability to offer shot blasting and cut-to-length services on heavy-gauge steels.

Macsteel just purchased Alpha Steel, Hammond, Ind., also owned by then-President and CEO Athens and his investor group, in April. Alpha Steel distributes hot-rolled plate, structural shapes and pipe. When that acquisition took place, Athens joined Macsteel as president of its Midwest Division.

Alpha Processing retains its name and management team under the Midwest Division.

“Adding Alpha Processing to our Midwest operations rounds out our processing capabilities in the region and moves the company to full service. It is a perfect complement to our existing business and to Alpha Steel,” says Michael Hoffman, president and CEO of Macsteel.

EMJ Expands in Toronto
Earle M. Jorgensen Co., Lynwood, Calif., has completed the expansion of its Toronto, Ontario, facility. The company determined that the 5-year-old warehouse and office facility was ready to support increased operations.

The original 62,000-square-foot warehouse was expanded by about 50 percent. The finished 92,000-square-foot facility includes 87,000 square feet of warehouse space.

William Gertin, director of EMJ’s Canadian Operations, says Ontario “is the center for half of all manufacturing activity in Canada, and we are adding more than just extra space to serve its diversified customer base. We are installing processing equipment and 60 percent more racking at a cost of $1.5 million (Canadian).”

The expanded facility and new equipment became fully operational Sept. 15.

Correction
PMP LLC, a joint venture between Heidtman Steel Products of Toledo, Ohio, and The Material Works of Red Bud, Ill., is now operating the industry’s first SCS coil line, housed in TMW’s Red Bud plant. An item in MCN’s September issue erroneously stated that Red Bud Industries had been contracted to build the line in Toledo. SCS is a patented process developed by TMW that takes hot-rolled black material through a simple brushing process to remove scale and give the material a cold-rolled-like finish.

Briefs
Yarde Metals Inc., Southington, Conn., signed a promotional agreement with Orange County Choppers Inc., builders of custom motorcycles. Yarde will supply OCC with aluminum and stainless bar products for its new precision machining center. The material will be stocked in a custom-built rack designed by Yarde employees. “The Yarde” has 35 slots to hold 17,500 pounds of product. It is adorned with diamond plate, airbrushed flames and the new Yarde Metals corporate logo. Orange County Choppers is the subject of “American Chopper,” a show on the Discovery Channel.

Bohler-Uddeholm Corp., a manufacture and distributor of tool steels, opened a Steel Store in Santa Fe Springs, Calif., which sells premium and standard tool, die and mold steels with a focus on cold work tool steels. Steel Stores are located in areas with a high penetration of tool-and-die customers. They fill small or large orders for same-day pickup or shipped per customers’ preferred delivery method.

Marmon/Keystone Corp. has signed a 10-year lease for a 150,000-square-foot industrial distribution facility in Bucyrus, Ohio. “It’s the ideal location for the distribution of material to our multi-plant U.S. facilities,” says Bob Kaniecki, executive vice president. The plant started up with 15 warehouse and clerical employees in September.

SteelSalvor, a metals auction site, has added an “Instant Purchase” option online. The feature gives buyers and sellers on the site the opportunity to move quickly on desired lots of secondary and excess steel and to lock out their competition. Every category of steel possible is available from galvanized coils to rebar, from stainless pipe to hot-rolled plate. Buyers at SteelSalvor can choose the pre-set price and instantly take the desired lot off of auction, or they can bid on the metal as they had done in the past.

Cleveland Motion Controls Inc. has launched its newly designed Web site. The site, www.cmccontrols.com, has updated design, navigation and content. Visitors can search by brand, market or specific product, and can locate datasheets, manuals and product news.

Millennium Steel Service is using Northrop Grumman Corp.’s OpenTrac software and e-commerce system to assist with its expansion to San Antonio, Texas. Under a five-year contract, Northrop Grumman is providing supply-chain management capabilities for better transaction communication between Millennium’s suppliers and customers. Metal Express, a nationwide cut-to-order metal distributor, recently relocated one of its stores from Addison to Villa Park, Ill. Due to increased demand in the Chicago area, Metal Express moved to a larger facility in Villa Park. The new store has additional office and warehouse space. Bernie McCallum, vice president of sales and marketing, says the larger facility makes it possible to expand inventory.

Sandmeyer Steel Co., Philadelphia, has added Alloy 330 to its line of heat-resistant stainless steel and nickel alloy plate products. Alloy 330-an austenitic nickel-iron-chromium alloy-resists carburizing and oxidizing atmospheres at elevated temperatures. The addition of A330 will enable SSC to better service the thermal processing, chemical and petrochemical, and power generation industries.

Metals USA Inc., Houston, will hold a special meeting of stockholders Oct. 19, to vote on a proposed merger with Flag Holdings Corp. and Flag Acquisition Corp. The company filed a proxy statement with the Securities and Exchange Commission.

Daymond Aluminum, a supplier of extruded components and assemblies, has ordered a Granco Clark PCS-824-21 precision sawing system for its plant in Chatham, Ontario. The system will provide the company with extremely close cutting tolerances and precision quality finishes, as well as a high volume of capacity. The system will complement the company’s existing services, such as mitering, notching, piercing, forming, bending, drilling, tapping and mechanical assembly and welding.

Marmon/Keystone Corp. held its 14th annual Quality Renewal day in September, benefiting employees who met safety, delivery and other goals. Through September, the company had on-time deliveries at 99.1 percent, returned merchandise of 0.2 percent, and exceeded all safety goals. Over the past five years, employees have been awarded more than $500,000 for submitting quality improvement suggestions.

Schuff International Inc., a family of companies providing fully integrated steel construction services, will sell its Schuff Steel-Pacific fabrication facility in National City, Calif., and consolidate the operations into expanded fabrication facilities near Phoenix, in an effort to provide improved operational effectiveness. The move should be completed during the fourth quarter. About 80 employees will be laid off at National City. Schuff Steel will continue to have a presence in the San Diego area, consisting of sales and marketing teams as well as estimators and project managers for new and existing projects, says Scott A. Schuff, president and CEO.

Obituary: Carl V. Liebovich
Carl V. Liebovich, 88, founder of Liebovich Brothers Inc., Rockford, Ill., died Sept. 3. Born Oct. 12, 1916, in Rockford, he married Nelle Cassioppi in 1939, the same year he founded the steel scrap company that would later become a highly successful service center.

In 1939, Liebovich Steel consisted of a city lot used to store scrap iron. Mr. Liebovich was joined by his two brothers, Al and Joe, in the mid-1940s, and after World War II, the company was renamed Liebovich Brothers. By the late ‘40s, they began selling new steel to customers throughout northern Illinois and southern Wisconsin.

Liebovich Brothers built its first warehouse in 1952, consisting of 7,000 square feet with a saw, burning machine and storage racks. In 1958, Liebovich began selling fabricated metal products. The first jobs consisted of columns and roof beams for houses and garages. By the 1970s and ‘80s, the company was supplying fabricated structural steel for projects as large as 22-story buildings and hangars to house Boeing 747 jets for United Airlines at O’Hare Airport.

The structural fabricating business was closed in the early 1990s, however, based on declining long-range market conditions.

In 1981, Carl, Al and Joe transferred ownership of the business to their sons, but until recently Carl could still frequently be found in his office running a separate machinery business.

In 1999, Liebovich Bros. Inc. was acquired by Reliance Steel & Aluminum Co., Los Angeles, but the operation is still run independently by more than 500 employees in Rockford and Peoria; Grand Rapids, Mich.; and Cedar Rapids, Iowa.

Mr. Liebovich belonged to Ohave Shalom Synagogue. He was past president and Man of the Year of West End Businessmen’s Association, a past member of SwedishAmerican Health Systems’ board of directors, a member of B’nai Brith, a member and past president of Mauh-Nah-Tee-See Country Club and a past president of Philip Behr Jewish Community Center. Last year, Mr. Liebovich received a National Founders award from the Metals Service Center Institute.

An avid golfer, Mr. Liebovich held the course record at Ingersoll Golf Course for eight years with his score of 64. He also recorded eight holes-in-one. He was a professional 3-cushion billiards player, as well, and loved to fish.

He is survived by his wife, Nelle; daughter, Carole (James) Levi; sons, Gregory (Gail) Liebovich and Larry (Barbara) Liebovich; brother, Theodore Liebovich, nine grandchildren, three great-grandchildren, and many nieces and nephews. Mr. Liebovich was preceded in death by his two brothers and a sister, Alice Maso.

People
Robert Mowry has been appointed vice president of purchasing for Worthington Industries Inc. He spent nearly 20 years at Honda of America Manufacturing in various corporate leadership roles, most recently as assistant vice president-purchasing, North America.

James Schumacher has been promoted to vice president of purchasing at Howard Precision Metals Inc., Milwaukee. He joined the company in 1994 as an inside sales manager and was promoted to purchasing manager in 1996. Before that, he worked at Carpenter Technologies, Banner Service and Independent Metals. Also promoted was Kimberly A. Anderson to vice president of sales and marketing. She joined the company in 1996 as inside sales manager and was promoted to sales manger in 1998. She previously worked in several sales positions at Ryerson Tull Inc.

Wally Walstrom has joined Chicago Tube and Iron Co. as assistant director of marketing-pipe, valves and fittings. He will help to increase PVF sales from CTI’s St. Paul office. Walstrom has more than 30 years of experience in the PVF industry, in product and account management, as well as purchasing.

Almetals Inc., Wixom, Mich., has promoted Sherri Hoover to customer service manager. She has been with the company four years as an inside sales agent.

Ferguson Metals has hired three new employees: Mark Harrod as business analyst/developer; Brandon Wiedeman as project engineer; and Michael Barker as a programming intern. Harrod was manager of Java development at Rippe & Kingston Systems. Wiedeman previously worked at Batesville Casket and Wash Pro. Barker is a junior at Miami University, Oxford, Ohio.

Bryan Danks has been appointed as an accountant and sales trainee at Specialty Pipe & Tube Inc., Mineral Ridge, Ohio. Danks previously worked at Astro Shapes, and as an accountant at a CPA firm.

 

 

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