Steel Technologies Expands in Mexico
Operations have begun at Steel Technologies’ new $8.5 million facility in Juarez, Mexico. The facility opened with slitting and warehousing services. Louisville, Ky.-based Steel Technologies also plans to add rail service and a new multi-blanking line to the Juarez plant.
“We are extremely pleased with the start-up and the strong customer reception of our new, world-class steel processing center that has begun serving customers in the fast-growing manufacturing base in the Juarez area,” says Carlos von Rossum, G., general director for Steel Technologies de Mexico.
The Juarez site expands the company’s Mexican platform to six facilities. Steel Technologies now operates processing centers in Monterrey, Matamoros and Juarez, and distribution centers in Queretaro, Puebla and Saltillo. Steel Technologies entered the Mexico market in 1994 and has continued to grow through greenfield expansion.
“We intend to continue to build strategically upon our North American platform of operations to best serve our customers and view the Mexico expansion as a key part of this strategy,” says Brad Ray, CEO of Steel Technologies.
Goncalves Sees Value in Mill
Ownership of Service Centers
Houston-based Metals USA is not getting the kind of attention from investors it had hoped, though President and CEO Lorenco Goncalves believes it’s only a matter of time before companies like his are the target of a different kind of bidder.
Metals USA announced the indefinite postponement of its planned public offering at the company’s quarterly conference call last month, where during a Q&A session with analysts Goncalves predicted that mills will eventually begin acquiring service centers.
“Major players in the industry will stake new positions up and down the supply chain-and that is good. But the real reason for doing so is somewhat different than what you would expect. It is not to capture a secure source of supply or to ensure a steady stream of demand,” Goncalves said, when asked about Metals USA’s expansion plans.
“Major mills will take these positions for two reasons: First, moving up and down the chain will give them a better view of the playing field and allow them to make faster and smarter decisions regarding demand and prices. Second, these forward thinkers will be able to capture more of the values and profits generated throughout the supply chain,” he said.
“Mills need more visibility. They don’t know where demand is going; they are too far removed from the customers. Service centers can bring that to them. At the end of the day, they don’t have to give away as much as they give to some [distributors]. They are leaving money on the table by not owning service centers, in my opinion. I believe this is the next important trend you will see.”
Azco Plans Facility
Next to Nucor-Yamato
Azco Steel, a division of Bushwick Metals, has purchased 53 acres adjacent to Nucor-Yamato in Blytheville, Ark., for the purpose of opening a service center at the location. The location will stock hard-to-find Azco Steel products. The new facility is expected to be operational by February 2008.
“Our intent is to service our customers in North America from a more centralized location,” says David Maslin, who will be in charge of the new facility. “From this point, we can more easily penetrate the area west of the Mississippi.”
Azco, headquartered in South Plainfield, N.J., specializes in the distribution of structural steel products.
Torrington Acquired by Rolled Metal Products
Rolled Metal Products Inc., Alsip, Ill., has acquired Torrington Brass & Steel from the Interwire Group. Torrington Brass & Steel operates a 52,000-square-foot plant in Torrington, Conn.
Torrington serves customers primarily in New England with slit and edge-conditioned stainless and high carbon steel, as well as copper and brass wire and coil.
“Torrington adds a new dimension to our organization by allowing us to better serve national accounts that prefer the convenience of suppliers with multiple plant locations,” says Peter McGuire, general manager of Rolled Metal Products’ Torrington plant. “It also allows us to expand deeper into the Northeast and New England markets while adding copper and brass wire and coil to our product line.”
The Torrington plant was opened in 1965 by Robert Brigham. In 1983, ownership passed to Tom Desjardins and John Murphy in an executive buyout. The plant became part of Interwire in 1997.
“The core group of manufacturing personnel have continued with the company over the years so that our experience level is high,” says McGuire.
Rolled Metal Products also operates service centers in Alsip and Bensalem, Pa. The company specializes in stocking and processing stainless steel and aluminum coil products.
ThyssenKrupp Buys UK’s Apollo Metals
ThyssenKrupp Services AG, headquartered in Duesseldorf, Germany, is expanding its aerospace materials services activities by acquiring a 100 percent stake in United Kingdom-based Apollo Metals Ltd. from Murray International Holdings.
Terms of the transaction, which includes Aviation Metals, were not disclosed.
Apollo provides high-grade production materials such as aluminum, stainless steel and nonferrous metals with value-added processing services predominantly for aerospace manufacturers and their supply chains.
Apollo’s CEO Stuart Wilkins will serve as president of the new division, which will be named ThyssenKrupp Aerospace.
“This acquisition secures us worldwide access to all the major aircraft manufacturers and their key suppliers,” says Joachim Limberg, executive board member at ThyssenKrupp Services. “This is a key milestone for us as an internationally recognized supplier of materials and services to the aerospace industry.”
Burgon Tool Steel Expands into Southeast
Burgon Tool Steel Inc., Portsmouth, N.H., has undertaken its first expansion outside New England with the opening of a distribution center in Tennessee. The company’s 20,000-square-foot plant near Nashville is a full-service facility stocking the company’s line of plate and bar products, flats and rounds.
“This new distribution facility will enable Burgon to provide just-in-time service to our rapidly expanding Southeastern U.S. customer base,” says David Hughes, CEO of Burgon Tool Steel.
The facility, equipped with new CNC steel processing equipment and staffed with veteran tool steel professionals, is located in LaVergne, Tenn. It began shipping material in early November.
The company’s main facility is a 120,000-square-foot operation in Portsmouth, housing more than six millions pounds of inventory.
“Our strategic plan is to expand Burgon nationally in the U.S., and the plan calls for additional logistics points in the Midwest and on the West Coast,” Hughes says.
People
Stephen Saunders has been named general manager of O’Neal Steel’s Atlanta District. Saunders, a native of Ireland, has been working in the U.S. service center industry since 2000.
Marmon/Keystone has filled two positions at its Los Angeles (Pomona) service center. Destine “Dusty” Stark has been named western regional credit manager and Bruce Strong has been named western region purchasing manager.
Doug Everhart has been hired as director of sales and market development by Loeffel Steel Products. Everhart has more than 35 years experience in the steel industry, and is a past president of the Association of Steel Distributors.
Obituaries
Joseph J. Briggeman, a veteran of the red metals industry, died in July at the age of 87. Briggeman worked for more than 50 years in the industry, including the last 11 at National Bronze & Metals, Houston, before retiring in 1999.
After serving in the U.S. Navy during World War II, Briggeman began a career in the metals industry that included stops at Chicago Extruded, Scovill, Century Brass and JM Tull before moving on to NBM.
He is survived by his wife Nancy and children Denise Cihlar, Christie Gruen and son Stephen Briggeman, who followed his father into the metals business. Stephen Briggeman is manager of the Knoxville office of Houston-based Triple S Steel.
Edwin Alan Reynolds, who spent more than 40 years in the metals distribution business, died Nov. 13 in Indianapolis. A graduate of the University of Virginia and a veteran of the U.S. Army, he spent more than four decades with the Reynolds Metals Co. in the company’s metals distribution segment.
Reynolds rose through the company ranks to become Reynolds Aluminum Supply Co.’s vice president of sales before retiring to become president of Edgecomb Metals, Non-Ferrous, Indianapolis.
He retired from the metals business in 2003 to develop and promote software programs to address literacy and teach English. His wife Sharon and three daughters survive him.
