Steel Technologies Inc. has announced plans to integrate Mi-Tech Steel, Inc., its 50/50 joint venture with Mitsui & Co. (U.S.A.), Inc., into Steel Technologies.
To facilitate the consolidation, Mitsui, the parent company of Steel Technologies, will contribute its 50% interest in Mi-Tech Steel. Steel Technologies expects to complete the Mi-Tech merger by the end of the first calendar quarter 2008.
Mi-Tech Steel, established in 1987, has thrived as a result of the strong 20-year partnership. A recognized leader in the steel processing segment, with a keen focus on “new domestic” automotive customers, Mi-Tech has projected revenue for 2007 in excess of $350 million. In addition to its original operations in Murfreesboro, Tenn., Mi-Tech Steel operates facilities in Greensburg, Ind.; Decatur, Ala.; Madison, Miss.; and a Canadian plant in Cambridge, Ont., which was purchased from Mitsui in January 2007. Mi-Tech also has a sixth facility in Woodstock, Ont., which is scheduled to open in early 2008.
Following the merger of Steel Technologies and Mi-Tech Steel, the combined company will continue to operate as Steel Technologies. It will be strategically positioned across the continent with a total network of 25 facilities (22 wholly owned and three joint-venture operations) in the U.S., Canada and Mexico. The company’s projected annual revenue will be approximately $1.4 billion, with annual shipments, including those by its joint-ventures, of approximately 3.5 million tons.
“We are very pleased to bring our Mi-Tech Steel partnership company under the name of Steel Technologies, which will create a much stronger and more dynamic company in the future,” said Bradford Ray, CEO of Steel Technologies. “This combination will help streamline our approach to the array of markets we serve, and places us in a strong competitive position to offer enhanced logistics and a broader product range to our customers. Our strategy is to be a consolidator in the steel processing sector, and we plan to continue in this direction.
“We are very excited about the combination of our companies and the prospects this combination provides for the future,” added Stuart Ray, Mi-Tech Steel’s President and Chief Operating Officer. “The merger between Steel Technologies and Mitsui earlier this year was a catalyst for us to bring these two organizations together as one, and we expect it will create new benefits for our customers and expand the opportunities available to our suppliers and employees.”
Steel Technologies Inc., a wholly owned subsidiary of Mitsui & Co. (U.S.A.), Inc. processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for automotive and a wide variety of other applications. Steel Technologies has 25 facilities, including its joint-venture operations, located throughout the United States, Canada, and Mexico.