O’Neal Acquires Ferguson Metals
O’Neal Steel, Birmingham, Ala., has purchased Ohio-based Ferguson Metals, a supplier and processor of specialty metals and high-temperature alloys. The transaction marks the third acquisition by O’Neal in the past year.

Founded in 1982 as Aerospace Alloys, Ferguson’s business has historically been niche-oriented, serving the aerospace industry from its inception with specialty stainless steels and premium heat-resistant alloys. The Hamilton, Ohio-based company provides extensive in-house processing services, including slitting, shearing, edging and leveling. The 106,000-square-foot operation is ISO 9001 registered, and has 80 employees. Ferguson Metals will operate as a wholly owned subsidiary of O’Neal Steel.

“Ferguson Metals is another great fit with the O’Neal family of companies,” says O’Neal Chairman Craft O’Neal. “The combination of Ferguson and our other specialty metals subsidiaries, Aerodyne Alloys and TW Metals, will enhance the service capabilities of all three companies, as we continue to expand our product expertise, inventory and capabilities directed at highly specialized markets.”

Wayne Ferguson, founder of the company, will continue as president through 2008. He sees his company’s sale to O’Neal as a big opportunity for the enterprise and its employees going forward. “I was looking for someone with the same philosophy and respect for the workers who got them there,” Ferguson says. “With O’Neal, I think we’ll have a good fit.”

In the only immediate management change, Charles O’Donnell, executive vice president, will retire Oct. 13.

Ferguson Metals recently completed a major upgrade at the facility, including the installation of a new cut-to-length line and 39,000 additional square feet of warehouse space.

Novamerican Installing
Temper Mill in Ontario
Novamerican Steel Inc., Montreal, will install a temper mill in a new facility on a recently acquired 22-acre property adjacent to its existing facility in Stoney Creek, Ont. The new line will be able to temper pass coil up to 5/8th-inch thick and 72 inches wide. The company plans to complete the facility in late 2007, at an estimated cost of $25 million (Canadian).

Rail siding was also introduced at the Stoney Creek facility, making Nova Steel Processing Centre the only independent pickling facility in Canada to have rail access.

Novamerican also announced the installation of a new pipe finishing facility at its Nova Tube and Steel operation in Morrisville, Pa. The new in-line capacity will add 50,000 tons of finished pipe production on Nova’s existing seven-inch structural tube mill.

“Our customers have been so pleased with the quality of our structural round tubing that it was a natural evolution for us to proceed with this investment into the pipe market,” says Novamerican’s President Scott Jones.
The project is estimated to cost $8.5 million (U.S.) and is scheduled for completion in late 2007.

The company also released its results for the third quarter, which ended Aug. 26. The company posted $211.3 million in net sales, a 10.5 percent increase from the same quarter in 2005. Net income increased 170.5 percent to $11.5 million during the quarter.

Heidtman to Build Strategic Facility
Near SeverCorr Mill
Heidtman Steel, Toledo, Ohio, will build a 240,000-square-foot processing facility in Columbia, Miss., near the new SeverCorr mill. The facility is expected to begin operations in mid-2007.

“We’re excited to welcome Heidtman to Columbus, both as a strategic partner for SeverCorr and as an employer for Mississippi,” says Michael Wagner, chief commercial officer of SeverCorr. “Our vision of a robust mega-site with multiple companies working closely together to produce the finest steel and steel products available is taking shape. The addition of Heidtman gets us one step closer to making that vision a reality.”

The Heidtman facility will have rail access and house several value-added-processing lines including stretcher leveling, sheeting, laser cutting technology and the SCS cleaning process. This precision equipment will be capable of processing hot-roll, cold-roll and coated products in gauges ranging from 0.014 inch through 0.500 inches by 72 inches wide, with a variety of strengths.

The Heidtman plant will be located on a portion of the 1,400-acre site that SeverCorr has set aside for business partners. “Heidtman Steel is proud to be chosen as a business partner by SeverCorr,” says John Bates, Heidtman CEO. “The opportunity to place a state-of-the-art processing facility on the same campus with a new world-class steel mill is exciting, and continues the mill-adjacent strategy that we have employed elsewhere.

“This plant will further increase our exposure to Southern markets and link the newest steelmaking technology with the growing demand for high-end processed sheet products in that market.”

Ryerson Forms Venture
with Chinese Company
Ryerson Inc., Chicago, will expand its service center business with a joint venture operation in China. Ryerson has signed an agreement with Van Shung Chong Holdings Ltd. and its subsidiary, CAMP BVI, to form a joint venture company, VSC Ryerson China Ltd.

VSC will own 60 percent of the joint venture at inception and will contribute its existing China metals service center network, which generated revenues of $140 million for the fiscal year ended March 31. Ryerson will contribute approximately $28.5 million in cash for its initial interest of 40 percent. The joint venture will use this cash to fund planned expansions to the service center network, in part to support Ryerson’s U.S.-based customers operating in China.

VSC Ryerson China Ltd. will be headquartered in Hong Kong and have processing and service center operations in Guangzhou, Dongguan, Kunshan and Tianjin, a minority interest in a processing facility in Nansha, and sales offices in Beijing, Shanghai, Wuxi and Shenzen.

“This investment allows Ryerson to participate directly in the rapidly growing Chinese market, the largest metals consuming market in the world,” says Neil S. Novich, Ryerson chairman, president and CEO. “Additionally, it provides an immediately operational platform with an experienced management team to serve the growing needs of our U.S. customers who have established a presence in China.”

The transaction is expected to close during the fourth quarter.

Leeco Opens New
Facility in Wisconsin
Leeco Steel, Darien, Ill., has opened a new warehouse and processing center in Oshkosh, Wis. The 78,000-square-foot facility carries plate steel, including carbon/HSLA extra-high-strength and abrasion-resistant grades. The operation is also equipped for full blasting and burning capabilities, as well as easy rail and truck access.

Equally important for customers in the upper Midwest, the new central location will allow next-day deliveries to Wisconsin, Iowa, Minnesota and Michigan’s Upper Peninsula.

“The opening of this facility is another indication of our commitment to our customers,” says Bob Pepoff, Leeco president and CEO. Chad Schuh is general manager at the new facility, which replaces a Leeco building in Manitowac, Wis.

McNichols Adds Spanish
Site to Web Address
McNichols Co., Tampa, Fla., has launched a Spanish language version of its web site. The site, which contains many of the same features as its English counterpart, was developed to serve McNichols’ growing domestic Hispanic and international customer base in South America, Central America and Mexico, where the company opened a new metals service center last year in Monterrey.
The web site address is http://www.mc-nichols.com/spanish. The site is also available from McNichols’ main English web site at http://www.mcnichols.com by clicking on the “En Español” link.

The web site features information on McNichols complete Hole Product lines and available fabrication services, as well as product application photos. Visitors to the site can view a downloadable Spanish catalog in PDF format and essential company background and contact information.

Briefs
The American Welding Society will hold a free session covering the new Occupational Safety and Health Administration regulations pertaining to hexavalent chromium exposure at 10:30 a.m., Nov. 1, at the FabTech International and AWS Welding Show in Atlanta. Final implementation of OSHA’s new Cr(VI) permissible exposure limits requirement, which went into effect at the end of May, is scheduled for Nov. 27.

Klein Steel, Rochester, N.Y., has selected Invera to install STRATIX software at its facility. Klein will implement a full complement of STRATIX features such as metal price book, saw and burning pricing, shop floor production recording, warehouse receiving, and WiFi functions.

Greer Steel, Dover, Ohio, has upgraded its Bliss 30-inch breakdown reversing mill by adding two I2S gamma ray gaugers and an I2S automatic gauge control system. The new AGC system, which uses a feed forward design, interprets exit gauge and allows greater correction control.

A.M. Castle & Co., Franklin Park, Ill., has completed the acquisition of Torrance, Calif.-based Transtar Metals, a distributor of high-performance alloys to the aerospace and defense industries worldwide. The closing purchase price was $173.3 million subject to final adjustments.

Brown Metals Co., Rancho Cucamonga, Calif., has added a new 28-inch Coil Pro slitting line to its warehouse of seven full-size slitters. The new slitting line can run materials from 0.0005 inches through 0.035 inches thick at up to 500 feet per minute. It is capable of slitting material as narrow as 0.060 inches and handling coil IDs from 2.750 inches through 20 inches.

People
Joseph A. Kaczka was hired as chief financial officer for Republic Engineered Products Inc., Fairlawn, Ohio. He had been the company’s vice president of finance.

Lawrence J. Bogner has been named vice president of operations for Kenwal Steel Corp., Dearborn, Mich. Bogner, who has 30 years experience in the steel industry, had been serving as general manager of Kenwal Pickling.

The Steel Supply Co., Rolling Meadows, Ill., has announced five changes to its sales force. Teresa Dorsey is the new senior buyer for bar products; Colleen Ossler is a senior inside sales representative; Melissa Ewing was hired as purchasing assistant; and Jorge Chilian and Adam Barrons were appointed to inside sales positions.

Service Center Metals, Prince George, Va., has announced three appointments: Bob Ramage as director of quality and technical services; Dennis Walker as shipping manager and plant industrial engineer; and Pam Argast to customer service manager.

Jim Ellis has been hired as director of operations at Vulcanium Metals Inc., a global distributor of titanium mill products. Ellis, whose family owned Ellis Steel in Detroit, has more than 20 years in the metals distribution business.