Steel Technologies Announces Consolidation of Mi-Tech Steel Joint Venture into Steel Technologies
Steel Technologies Inc. (“Steel Technologies” or the “Company”), today announced that it will integrate Mi-Tech Steel, Inc. (“Mi-Tech Steel”) a 50/50 joint venture with Mitsui & Co. (U.S.A.), Inc. (“Mitsui”), into Steel Technologies. Mitsui, the parent company of Steel Technologies, will contribute its 50% interest in Mi-Tech Steel to the Company to facilitate the consolidation. 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 a strong partnership that celebrated its twentieth anniversary earlier this year. A recognized leader in the steel processing segment, with a keen focus on “new domestic” automotive customers, it has projected revenue for 2007 in excess of $350 million. Today, Mi-Tech Steel operates six facilities, including its original operations in Murfreesboro, Tennessee; facilities in Greensburg, Indiana, Decatur, Alabama, and Madison, Mississippi; a Canadian plant in Cambridge, Ontario, which was purchased from Mitsui in January 2007; and a facility in Woodstock, Ontario, that is scheduled to open in early 2008.
The combination of Steel Technologies and Mi-Tech Steel will pull together two of the leading and fastest-growing steel processing companies in North America. Following the merger, the combined Company, which will continue to operate as Steel Technologies, 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 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, Chief Executive Officer 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, appliance, lawn and garden, office furniture, agriculture, construction, hardware, and consumer goods. Steel Technologies has 25 facilities, including its joint-venture operations, located throughout the United States, Canada and Mexico. More information about the Company may be found on the World Wide Web at www.steeltechnologies.com.