Robinson, Cargill Create Joint Venture: Granite City Plant to Benefit From Deal
By Will Buss, Belleville News-Democrat, Ill.
Aug. 25–EAST CHICAGO, Ind. — An iron and steel processor and distributor that operates a plant in Granite City has joined a leading global trader, processor and distributor of iron and steel.
Robinson Steel, which has a 100,000-square-foot steel mill at 2325 North St., has partnered with Minneapolis-based Cargill to produce and distribute Robinson Processing System Sheet and Plate under a license.
Robinson Processing System is a process Robinson Steel created 10 years ago to allow manufacturers, for the first time, to obtain steel sheet and plate that remained flat throughout the entire manufacturing process. The companies’ new joint venture will have an initial capacity of 200,000 tons per year of cold-reduced, cut-to-length and hot-rolled steel.
Cargill will provide all of the sales and marketing, while Robinson will manage and operate the production of the factories. Cargill will have access to production from Robinson Steel’s Granite City and East Chicago, Ind. plants. Officials expect to close the deal within the next 45 days. Terms were not disclosed.
“We’re thrilled about this opportunity and thrilled about this joint venture,” said Robinson Steel spokeswoman Sharon Moore. “We couldn’t be happier that Cargill selected (Robinson Processing System).”
In a statement released from the steel company’s corporate headquarters in East Chicago, Robinson Steel President and Chief Executive Officer Paul Labriola said this opportunity will bundle the steel company’s resources with Cargill’s global iron and steel supply chain and risk management capabilities.
Cargill Steel Service Centers President Mike Taylor said the partnership will allow Cargill to immediately increase its product offerings to meet customers’ growing demands for panel flat sheets and plates, which has become the standard recognized throughout the industry.
In addition to Granite City, Robinson Steel operates plants in Pomona, Mo.; Davenport, Iowa; Arlington, Texas; Statesville, N.C.; Opelika, Ala.; and East Chicago.
Cargill acquired Loudon, Tenn.-based Olympic Metals in April and co-operates seven flat rolled steel service centers with over 245 employees in East Chicago; Houston; Tulsa, Okla.; Memphis, Tenn.; and Panama City, Fla. These plants also produce hot-rolled band, pickled and oiled, cold-rolled and tin mill products.
Contact reporter Will Buss at wbuss@bnd.com or 345-7822, ext. 24.
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