2007 Service Center News

Steel Technologies to be Acquired
by Partner Mitsui & Co.

The longstanding relationship between Mitsui & Co. and Steel Technologies will strengthen with Mitsui’s decision to purchase all the shares of the nation’s 16th largest service center company.

Steel Technologies, Louisville, Ky., operates 25 steel processing facilities, including its joint venture operations, throughout the United States, Canada and Mexico. Its largest joint venture, Mi-Tech Steel, is a 50-50 partnership between Steel Technologies and Mitsui.

“As a result of our 20-year strategic partnership, Mitsui USA and Steel Technologies know each other’s strengths quite well,” says Ichizo Kutsukake, senior vice president of Mitsui USA’s Iron and Steel Products Division. “We intend to leverage Mitsui USA’s investment and logistics capabilities to position Steel Technologies as an important element in implementing our North American business strategy. Steel Tech nologies will enable us to effi ciently meet our customers’ ever-increasing de mands and expectations.”

Upon completion of the merger, Steel Technologies will operate as a separate, wholly owned subsidiary with the current management team maintaining responsibility for the company’s performance and growth.

The all-cash transaction, valued at approximately $532 million, including retained debt of $136 million, is subject to shareholder approval and regulatory review, and is expected to close by the end of June.

“Going forward, our partnership with Mitsui offers new and attractive opportunities for us to build our business. Mitsui brings significant resources to the table that will enhance our market presence, competitive position and product capabilities,” says Steel Technologies Chairman and CEO Bradford T. Ray.

O’Neal Steel Forms High-Performance Metals Group
O’Neal Steel, Birmingham, Ala., has announced the formation of a new entity specifically focused on high-performance high-temperature metals.

Five of O’Neal’s separate and independently operated business units currently serving the aerospace and other high-performance metals markets will now closely coordinate their operational activities and customer services, and will selectively integrate and share stocking and processing facilities. While continuing to do business individually, the five companies will form a new cooperative and synergistic body known as O’Neal-HPMG (High-Performance Metals Group). The companies involved are: TW Metals, Aerodyne Alloys, Ferguson Metals, AIM Inter na tional, and Supply Dynamics.

“The formation of this group is simply a means of harnessing the best of each company’s capabilities, skills and resources to maximize the value O’Neal brings to its customers and suppliers,” says Craft O’Neal, chairman of O’Neal Steel.

From small-lot orders to complete supply chain management solutions, he adds, the objective is to ensure that O’Neal-HPMG is the only global source a customer will ever need to service its raw material and related supply chain needs.

Southern Aluminum Finishing
Opens California Operation
Southern Aluminum Finish ing Co., Atlanta, will open a western plant operation in Shasta County, Calif., The facility will mirror its Atlanta capabilities for distribution and fabrication of aluminum sheet and extrusions for the commercial construction market.

In addition to expanding the company’s national distribution and production services, the new 20,000-square-foot facility will augment the company’s Western Division sales office in San Diego.

Shasta County, which is located on Interstate 5 between Seattle and Los Angeles, provides a welcoming business environment to locate Southern Aluminum Finishing, according to project manager, Jim McClatchey.

“We have seen tremendous construction growth throughout the West,” says McClatchey. “From this Northern California location on Interstate 5, a major transportation artery, we will be able to offer overnight delivery of anodized and mill finish aluminum to most of the West Coast.”

Cargill Purchases Tennessee
Service Center Olympic Metals
Cargill has agreed to purchase the assets of Olympic Metals in Loudon, Tenn, through its steel service center business. Terms of the transaction were not disclosed.

Olympic is a single location steel service center that offers stretcher-leveled cut-to-length sheets, blanking and coil-slitting capabilities. The plant is located in eastern Tennessee, about 30 miles southwest of Knoxville.

“This facility will allow us to expand our market area in the Mid-Atlantic and Southeastern states,” says Mike Taylor, president of Cargill’s Steel Service Centers. “It allows us to build on our existing strength in cut-to-length steel, in addition to adding a new technology to our portfolio. This is a perfect strategic fit for us.”

Cargill currently operates six flat-rolled steel service centers with over 225 employees, focusing on hot-rolled band, pickled and oiled, cold-rolled and tin mill products. Locations include East Chicago, Ind.; Houston; Tulsa, Okla.; Memphis and Nashville, Tenn; and Panama City, Fla.

Bushwick Acquires Koons Steel
Bushwick Metals Inc., Bridgeport, Connecticut, has acquired Koons Steel Inc. The new company will be called Bushwick-Koons Steel.

Koons Steel is a general-line steel service center located 40 miles west of Philadelphia, in Parker Ford, Pa. It serves customers primarily in the Pennsylvania, Delaware, and southern New Jersey region. Its extensive inventory includes wide-flange beams, pipe, tubing and flat-roll products, plus numerous galvanized minimill products. Value-added services include saw cutting, shearing, flame cutting, cambering and bending.

Frank Koons III will continue to manage the operations at the company’s 150,000-square-foot facility.

“Adding our services and relationships to Bushwick’s inventory, capital and marketing expertise creates a formidable company,” Koons says. “Our primary focus will continue to be quality and service. The benefits of this union for our valued customers and employees will be seen immediately.”

“Koons brings us a very talented group of employees, strong leadership and a solid reputation within their marketplace,” says Rick Perlen, Bushwick president. “Their recently constructed facility is perfectly located to expand our presence into the southern New Jersey, Pennsylvania and Delaware markets. Combining Koons’ competencies with the additional product lines of Bushwick and AZCO will create a superior resource for steel consumers in this territory.”

Bushwick Metals is a subsidiary of Marmon/Keystone Corp., a leading wholesale distributor of carbon, stainless steel and aluminum tubular and bar products, with corporate headquarters in Butler, Pa.

Feralloy Purchases SCS System from Layhill
Feralloy Corp., Chicago, will purchase the SCS sheet-to-sheet cleaning system from Layhill Processing LLC, Loudin, Tenn., for installation at the Feralloy Charleston Division in Berkeley County, S.C.

The line will be operational around April 1 and will complement the currently operational Butech leveling system.

The SCS system is designed to clean hot-roll for painting and substantially increase laser-cutting speeds. The line has the capability of cleaning hot-rolled sheets in thicknesses from 0.056 to 0.500 inch in widths from 24 to 72 inches.

OBITUARY

Atlas Steel Products Vice President Patrick J. Hanrahan, 47, of University Heights, Ohio, died Saturday, Feb. 17, after a 2 1/2-year battle with melanoma.

Atlas President Lawrence “Bo” Burr says Hanrahan’s contributions extended beyond the professional successes he helped develop at Atlas.

“Pat really helped drive our company forward, but just as importantly, he brought a high level of enthusiasm and professionalism to our business,” Burr adds. “He was a fighter to the end. He inspired all of his fellow associates to address the challenges of the future and the many uncertainties we face, both professionally and personally.”

Hanrahan was active in many capacities with the Metals Service Center Institute.

He is survived by his wife Sandra, son Patrick and daughters Kelly and Kerry.

PEOPLE

Mark A. Russell has been named the president of the Worthington Steel Co., part of Worthington Industries, Columbus, Ohio. Russell had been CEO of aluminum products company Indalex.

Joe Wolf has been promoted to president of Precision Strip, following the retirement of Tom Compton. Wolf had been vice president of operations for Precision Strip, a subsidiary of Reliance Steel & Aluminum Co. Don Bornhorst, director of northern operations, replaces Wolf as operations vice president.

Mike Tieri has been hired as outside sales manager for the Chicago Division by Chicago Tube and Iron Co. Tieri has 15 years in the steel distribution industry, previously working as sales manager at M.C. Steel in Wheeling, W.Va.

BRIEFS

American Steel, Portland, Ore., has chosen Bayern Software’s STEEL PLUS Imaging for mill test report tracking and document management needs. American Steel is a subsidiary of Reliance Steel & Aluminum Co.

Flatrolled Steel Inc. of Houston, Texas, has begun processing metal with its newly installed high-speed multi-cut blanking line from Red Bud Industries, Red Bud, Ill. The line is capable of processing 72-inch-wide 0.135-gauge coils up to 60,000 pounds at 400 fpm.

Main Steel Polishing Co., Tinton Falls, N.J., has announced the addition of a new 20,000-square-foot bay at its Atlanta plant. The space will be used mainly for coil storage and finished goods. The addition will increase the location’s capacity to 64,000 square feet and allow for easier access to stored product, as well and free up more room for operations within the plant.

Jemison Demsey Metals will receive its third Red Bud multi-cut blanking line later this year. The 0.135-gauge line with the dual motor grip-feed system will be installed at Jemison Demsey’s Sumter, S.C, service center.

National Tube Supply Co., University Park, Ill., has chosen Verticent ERP Plus software for its enterprise solution. The program provides National Tube with increased automation, greater efficiency and better reporting capabilities.

Reliance Steel & Aluminum Co., Los Angeles, has completed its acquisition of Encore Group, Edmonton, Alberta. The group consists of Encore Metals, Encore Metals USA, Encore Coils and Team Tube in Canada.

Superior Supply & Steel, Houston, will open a facility in Mobile, Ala., to stock a full range of plate products for the shipbuilding and offshore rig businesses. Superior now maintains 11 locations.

Rolled Alloys, Temperance, Mich., has announced the opening of Rolled Alloys Suzhou Co. Ltd., with a new warehousing and processing facility in the Suzhou Industrial Park, China. The 30,000-square-foot facility includes shearing, sawing and plasma cutting capabilities.

Globe Stainless Inc. has installed a 10-gauge precision blanking line from Red Bud Industries at its Los Angeles service center. The line is capable of running coils up to 60 inches wide with weights up to 23,000 pounds and comes equipped with the grip feed system delivering 0.005-inch length tolerances.

Willbanks Metals, Fort Worth, Texas, will implement enterprise software from Verticent Inc. Willbanks opted for Verticent ERP software based on its flexibility and Verticent’s knowledge of the metals industry, the company claims.

H & D Steel Service Inc., Cleveland, has completed installation of a 14-gauge precision blanking line from Red Bud Industries, Red Bud, Ill. The line, which offers precision blanks with 0.005-inch length tolerances and production speeds up to 120 fpm, will be used to process mark-free stainless steel and aluminum blanks.