thyssenkrupp Materials Services has opened a new steel service center in Texas. The company's facility in Sinton will be its fourth in the United States.
The new facility will focus on steel processing and supply chain management for manufacturing companies across multiple markets in the region and neighboring Mexico, which previously relied on materials with long transportation routes due to their geographic location. Additionally, investments of more than $32 million will create more capacity for increasing demand in the region.
Due to its geographic location, the Sinton site is an important strategic addition to the three existing steel service centers in Richburg, S.C.; Woodstock, Ala.; and Detroit. The move continues thyssenkrupp Materials Services' expansion in North America, where the company has invested more than $100 million in the past two years.
"North America is an important growth market for us, which is why we are continuously expanding our position as a strategic partner to the automotive industry," said Martin Stillger, CEO of thyssenkrupp Materials Services. "With our new steel service center in Sinton, we are ensuring the flexible and reliable supply of high-quality materials to existing and new customers. In line with our 'Materials as a Service' strategy, we take over the efficient and secure management of supply chains, while our customers can concentrate on their core business."
The new service center is located on the premises of Steel Dynamics Inc., one of the largest steel producers in the U.S. "The logistically favorable location – including direct rail and port access – in Sinton allows us to bridge the gap to markets that were dependent on distant suppliers. We are expanding our geographic reach in high-growth markets with a high demand for steel," said Steve McGee, COO of thyssenkrupp Steel Services. The customers, primarily in automotive, HVAC and construction markets, will have beneficial access to the materials and can thus secure competitive advantages."
The facility includes slitting and cut-to-length lines. The operation can process advanced high-strength steel and other grades rarely found in the United States, the company claimed.
The steel service center uses wind and solar power as well as electric forklifts to deliver on the company’s corporate commitment to reduce carbon emissions. The site spans nearly 33 acres and has adequate space for several future expansions.