Grand Steel, a flat-rolled steel service center and distributor, has acquired and launched a new toll processing facility in Chattanooga, Tenn. This strategic expansion builds on the company’s already successful presence in Clinton, Tenn., and significantly strengthens Grand Steel’s capabilities in the Southern region.
The new Chattanooga facility, equipped with two 72-inch slitting and packaging lines and a multi-blanker, will primarily focus on toll processing. Its location is ideal for leveraging the area's thriving steel market dynamics, with nearby steel mills providing excellent access to raw materials and customers across multiple industries.
The 126,000-square-foot complex offers both rail and barge capabilities, allowing it to receive up to 40-ton coils via barge and 30-ton coils via rail, enhancing its operational flexibility and logistical reach.
"Expanding into Chattanooga is a natural progression for us," said Mike Barnett, president of Grand Steel. "The region is home to a booming industrial and manufacturing market, and having both rail and barge access along with an in-house trucking fleet allows us to better serve our customers with greater efficiency and lower transportation costs. We’ve seen tremendous success with our facility in Clinton, and we look forward to building on that momentum as we deepen our presence in the South."
“This new location in Chattanooga enhances our company’s toll processing capabilities, expanding Grand Steel’s ability to offer just-in-time delivery and more responsive services to its Southern U.S. customer base. By providing increased processing capacity with access to multi-modal transportation options, Grand Steel ensures that its customers will benefit from both cost savings and operational efficiency," said Grand’s Vice President of Operations Chuck Garavaglia.
The addition of the Chattanooga facility will enable Grand Steel to offer additional services to its Southern vendors and customers, particularly in the automotive and manufacturing sectors. This expansion is part of Grand Steel's broader strategy to grow its toll processing and distribution capabilities throughout the U.S., providing high-quality, customized steel solutions to its growing customer base.
FINNEA Group acted as financial advisor and Lewis Thomason, P.C. acted as legal advisor to Grand Steel on the transaction.