Metals Chips
By Staff -- Purchasing, 8/16/2007
Reliance Steel & Aluminum of Los Angeles, the second-largest metals service center in North America, is buying Clayton Metals of Wood Dale, Ill. Clayton specializes in the processing and distribution of aluminum, stainless steel and red metal flat-rolled products, custom extrusions and aluminum circles at locations in Wood Dale, Ill.; Cerritos, Calif.; High Point, N.C. and Parsippany, N.J. Clayton Metal's net sales in 2006 were $123 million. By comparison, Reliance Steel had 2006 sales of $5.74 billion.
Namasco of Roswell, Ga., the 12th largest metals service center in North America, has expanded by acquiring Primary Steel of Middletown, Conn. and Premier Steel of Shreveport, La. Namasco, owned by German steel distribution group Klöckner & Co. Premier had $1.2 billion in sales in 2006, according to Purchasing's Top 100 Service Centers listing. Primary had sales of $509 million in 2006 while Premier Steel had sales of $30 million.
- Two major distributors of industrial and oilfield pipe, valves and fittings, Red Man Pipe & Supply of Tulsa, Okla., and McJunkin of Charleston, W.V., are merging into a to-be-named new company that will rank within the Top 10 of Purchasing's Top 100 Service Centers.
Steelmaker Steel Dynamics Inc. is spending $360 million to buy GalvTech, MetalTech and NexTech. Known together as "The Techs," these Pittsburgh-based firms have galvanizing capacity of 1 million tons/year, almost doubling SDI's hot-dip galvanizing capacity at Butler and Jeffersonville, Ind.
- Shelbyville, Ky.-based Ohio Valley Aluminum is closing its Niles, Ohio, secondary aluminum ingot plant because of soft demand excess capacity throughout the Midwest. The plant has been idled since last November when the company and union were unable to reach a new contract agreement.
- Management of Warren Steel Holdings now expects to begin shipping 8- to 12-inch round steel billets this month from the Warren, Ohio, plant that once was Copperweld Steel and then CSC before it closed in 2001.
Carpenter Technology has broken ground for a $115 million facility in Reading, Pa., to expand its melt capacity by 40% of premium-grade specialty alloys marketed for critical applications in the aerospace, energy, medical and automotive industries. The expansion of melt capacity and related infrastructure is expected to be completed by late 2009.
Alcoa has restarted a potline at its Alcoa, Tenn., aluminum smelter that had been idled due to a direct lightning strike in mid-April. Partially smelted alumina had to be dug out of each of the unit's 164 pots, which then had to be repaired. The potline produces approximately 107,000 metric tons/year. The company has also plans to restart operations during the fourth quarter at its Rockdale, Tex., smelter.
Algoma Steel of Sault Ste. Marie, Ontario, now is a wholly owned subsidiary of Essar Steel Holdings of India, which acquired the Canadian steelmaker for $1.74 billion. Denis Turcotte continues as CEO of Algoma Steel.
- Flat-rolled steel service centers Dayton Steel Service of Dayton, Ohio, and Thompson Steel of Canton, Mass., will merge into Thompson Dayton Steel Service. Thompson Steel will relocate its Franklin Park, Ill. inventory, equipment and sales specialists into the Dayton Steel facility to establish better efficiency in the Midwest. The combined firm and its estimated $135 million in annual sales should be listed in the middle range of Top 100 service centers next year.
- German steel producer ThyssenKrupp and Brazilian iron ore producer CVRD, or Companhia Vale do Rio Doce, will build a $4 billion steel complex in Brazil that will start operating by 2009. Brazil's National, Social and Economic Development Bank is financing around 18% of the total investment which will see the construction of a new 5 million metric ton/year steel mill in Santa Cruz, Rio de Janeiro state.
Kaiser Aluminum will spend $34 million on equipment to increase production capacity for heat-treated metal plate at the company's Trentwood rolling mill. The Spokane-area mill makes heat-treated sheet and plate products for aerospace, transportation and industrial uses. This plate-upgrade investment is in addition to $105 million in upgrades that are already underway at the mill by the Foothill Ranch, Calif.-based firm.
Alcoa's new Fjardaál aluminum smelter was opened in early June on Iceland's east coast near the 700-person town of Reydarfjordur. The smelter will be working at full capacity by the end of the year. Fjardaál means "aluminum of the fjords."
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