Nucor Plans Processing Facility
“Not Service Center,” in Mexico
Nucor Corp, one of North America’s largest steelmakers, has announced plans for a steel processing operation in Mexico. Though a final site determination has not been made, the company is focusing on the Monterrey area.

Nucor will construct a 500,000-ton capacity sheet and coiled plate processing center, in a location still to be determined, at a cost of $115 million to $125 million. The operation will include equipment for a variety of value-added processing operations including pickling, slitting, cut-to-length and blanking.

Nucor officials, who have repeatedly stated that the company has no desire to enter the service center business, say the Mexican operation is not a service center.

“It’s definitely focused more on processing than distribution,” says John Ferriola, Nucor’s chief operating officer of steelmaking operations.

In addition to producing carbon and alloy steel in bars, beams, sheet and plate, the company also maintains several downstream operations in the building products line. This will mark its first processing operation in North America.

“Mexico is a very important market to Nucor," says Dan DiMicco, Nucor's chairman, president and CEO. "We have many customers in Mexico, and it is important for us to be able to better service those existing customers and to expand our presence in the growing Mexican economy. We are very excited about this opportunity."

O’Neal Steel Acquires
TAD Metals Locations
O’Neal Steel Inc., Birmingham, Ala., has acquired the assets of TAD Metals Inc.’s Northeastern, Southwestern and Canadian regional operations, including six metals service centers and one sales office.

Since 1997, TAD Metals has specialized in the processing and distribution of stainless steel and aluminum for use in a wide range of applications. In addition to flat-rolled material, the company also has developed a full line of long products (pipe, tube and bar) and an integrated system for distribution.

The locations acquired by O’Neal are in Monroe Township, N.J.; Norwell, Mass.; Dallas, Houston, Laredo and San Marcos, Texas; and Mississauga, Ont. The facilities will continue to operate under the name TAD Metals, as a wholly owned subsidiary of O’Neal. TAD’s two southeastern locations, which were not part of the transaction, will continue to be operated by the seller and be known as AP Specialty Metals.

“TAD enhances our expertise and growing strength in non-ferrous product distribution and processing, while expanding our geographical reach and further diversifying our product offering,” says Chairman Craft O’Neal.

Chicago Tube & Iron Building
North Carolina Fab Center
Chicago Tube and Iron Company, Romeoville, Ill., will construct a fabrication center in Locust, N.C. The $10.8 million investment will produce a 130,000-square-foot facility as part of CTI’s power division.

“Our North Carolina power division is responsible for sophisticated engineering and exotic welding of high-pressure components for the utility industry,” says Donald McNeeley, CTI president. “It is imperative to invest in geographic areas of high-quality workmanship. We have found such in North Carolina and are pleased to be making this investment.”

The power division is part of Chicago Tube and Iron’s engineered products group, reporting to Vice President Ron Romanski. Veteran local management of Gerry Osborne, Lionel Hahn and Johnny Foreman will continue to lead the North Carolina operation.

“The utility outlook is bullish, as the nation’s demand for power continues to increase. The aforementioned workmanship combined with excellent local management rendered this a good decision for our future,” McNeeley says.

National Bronze Opens French Sales Office
National Bronze & Metals Inc., Houston, has opened its newest sales division in Paris, France. The new venture will be named National Bronze & Metals (Europe), SAS.

Although NBM regularly does business with companies in Europe, the new venture is intended to further broaden the channels for the supply of material into this market. In the near future, the company plans to open a distribution center in southern France where inventories will be stocked and processing will take place to service customers’ requirements.

Gregoire Aubry will manage NBM’s operations in France. He had been in charge of sales operations and marketing at LeBronze Industriel. “It is a great honor to join such a good team of talented people,” Aubry says.

“We are truly looking forward to this new challenge,” says Norman Lazarus, senior vice-president. “We know and see the potential available to us in the European marketplace and have every confidence that Aubry is the right man to develop it for us, especially now that we are expanding our foundry in Lorain, Ohio.”

Private Equity Firm Acquires Camalloy
Republic Private Equity, a Denver-based private equity investment firm, has acquired Camalloy Inc., Washington, Pa. Camalloy is a service center focused on stainless steel sheet and plate and other complementary industrial products.

The Camalloy acquisition marks the second investment in the service center sector by RPE. The firm previously acquired Clinton Aluminum & Stainless Steel, Clinton, Ohio.

RPE is providing capital and will partner with the existing Camalloy management team to further grow and enhance the business. 

“Camalloy has a strong reputation in the marketplace based on its customer-centric culture and its unyielding dedication to quality control and timely delivery,” says Bill Haan, president of Republic Financial’s private equity group. “Camalloy’s customers are seeing an increased demand for stainless steel products in a global marketplace, and we believe there are many other additional opportunities for Camalloy to grow.”

Camalloy was founded by John Campbell in 1969 when he merged three metal service centers. In 1993, the company specialized in stainless steel. 

Sullivan Steel Expands Product Offerings
Sullivan Steel Service, Pennington, N.J., is expanding its product offerings to include vacuum-melted M50 and vacuum-melted 52100 steel. The company has long supplied 52100 steel tube and bar to the bearing industry.

Bob Trainer, general manager of Sullivan Steel Service, believes the aerospace industry will provide most of the demand for the vacuum-melted steel, plus other industries demanding improved bearing quality and reliability such as oil drilling ,  gas refining and wind turbines. “We don’t make snap judgments about our inventory,” Turner says. “Once we commit to a new program, we stock both in breadth and depth.”

Marmon/Keystone Opens Facility in Texas
Marmon/Keystone Corp. has opened a warehouse facility in Fort Worth, Texas. The new facility, which opened in February, is a 54,000-square-foot satellite of the company’s Houston service center. Tom Chelton, Houston branch manager, will oversee both locations.

“Our presence in the northwestern portion of Texas will give us the advantage of serving many of our present customers more conveniently,” Chelton says.

The Fort Worth facility, located off Route I-36West, contains five overhead cranes, two Amada saws with cutting capability of 13 inches and 20 inches, and two tractor-trailers.