Annual Producers Outlook
January 2020
January2020
trend publishing metals group  Volume 76 Number 1
16
METAL PRODUCERS OUTLOOK
While industry oracles and observers rarely have clear sight, metals producers possess the vision to bet on the future
Large rolls of metal
Service Centers
Building and maintaining relationships is as important as growth by capital investments and acquisitions
Factory floor
Assembly line
Fabrication Equipment
Laser cutting
features
coil processing
Slitting, blanking and packaging lines built to supply high-strength materials efficiently and safely
coil coating
Asset acquisitions, growing product line, equipment investments help one company leap into the future
laser technology
Laser center addresses a wide variety of potential manufacturing bottlenecks
sawing / cutting
Uncommon requirements drive custom designs
Fabrication equipment
Metal fabrication
January2020
trend publishing metals group  Volume 76 Number 1
75 years of serving the metals industry
Large rolls of metal
16
METAL PRODUCERS OUTLOOK
While industry oracles and observers rarely have clear sight, metals producers possess the vision to bet on the future
Factory floor
Service Centers
Building and maintaining relationships is as important as growth by capital investments and acquisitions
features
Assembly line
coil processing
Slitting, blanking and packaging lines built to supply high-strength materials efficiently and safely
Fabrication Equipment
coil coating
Asset acquisitions, growing product line, equipment investments help one company leap into the future
Laser cutting
laser technology
Laser center addresses a wide variety of potential manufacturing bottlenecks
Fabrication equipment
sawing / cutting
Uncommon requirements drive custom designs
departments
Comprehensive industry coverage anytime, anywhere
7,000 square feet of 24-gauge steel
/steel
top service centers find pockets of demand growth
/servicecenters
major steelmaker bets on digital printing technology
/coatedcoil
Online
Features
modernmetals.com
/steel
7,000 square feet of 24-gauge steel PAC-CLAD Precision series tiles wrap a loading dock at the Minneapolis-St. Paul airport
modernmetals.com
/servicecenters
Previewing 2020’s book of business, top service centers find pockets of demand growth amid a bottoming out of carbon steel prices
modernmetals.com
/coatedcoil
Art meets science as major steelmaker bets on digital printing technology to take coil coating to a new level
Man welding
Morgan ditches steel platform for lighter aluminum design
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Morgan ditches steel platform for lighter aluminum design
Photo: Morgan Motor Company
A steel company and a city: How Armco and Middletown grew together
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Corinna Petry headshot
fromtheeditor
BY corinna petry
Moving Forward
T

he Metals Service Center Institute (MSCI) welcomed the signing in mid-December of the United States-Mexico-Canada Agreement (USMCA), negotiated by the U.S. and Mexican governments and agreed to by House Speaker Nancy Pelosi.

“MSCI represents more than 285 companies with approximately 2,300 locations across North America,” MSCI President and CEO M. Robert Weidner III said in a statement. “This trade pact is critical to these firms’ ability to compete on this continent, and globally.” The USMCA “will preserve well-established relationships and partnerships that have expanded exports, enhanced growth, and provided well-paying jobs to millions of North American metals workers.”

guesteditorial
BY DAVID GAUTHIER, PRINCIPAL CONSULTANT, STRATEGIST
Full Reward
The devil you know may be hindering your business, but there are ways to turn it into the friend you need
W

hen I ask someone if they like their company’s enterprise resource planning system, I rarely hear a positive answer. Most say something along the lines of, “It’s the devil that we know.”

Why do they feel this way? Possible reasons include that their organization selected the wrong product, implemented it incorrectly or the software is obsolete. 

For many companies, an ERP system is the most expensive and complex software that they will purchase. Implementing an ERP system is a growing company’s rite of passage with many promises: increased efficiency, the opportunity to scale up and a means to transform a company to higher levels of business maturity.

servicecenternews
McNichols opens Nashville branch
McNichols opens Nashville branch
, Tampa, Florida, has opened a service center in Nashville, which carries a dedicated stock of the company’s vast inventory of perforated metal, expanded metal and wire mesh, as well as bar, fiberglass and plank grating.
Toll processor invests in heavy-gauge CTL/leveler
Mississippi Steel Processing, Columbus, Mississippi, is installing a heavy-gauge cut-to-length line and stretcher leveling system from Red Bud Industries. The company expects to start up the line this spring. The increased productivity and capacity provided by the new hybrid system will enable MSP to expand its product line and improve delivery times throughout the South. The line will accept coils up to 40 tons, in gauges up to 0.625-inch thick and widths up to 84 inches.
tradetalk
Processing equipment builder reaches 60 years
2019 marks Red Bud Industries’ 60th anniversary
2019 marks Red Bud Industries’ 60th anniversary. In 1959, at just 23 years old, Ken Voges sold his prized 1955 Thunderbird to start a tool and die shop on his parents’ farm. The company is still family owned and has evolved into a designer and builder of coil processing systems with over 1,200 installations worldwide.
Eye On People
Michael Greathead has retired from Aviva Metals, Houston, after working more than 33 years with the company, the past 26 serving as president. He remains a member of its board of directors. Tom Bobish succeeds Greathead as president. Bobish has been with Aviva Metals for three years as the vice president of operations, having previously spent nearly 10 years with PMX Industries as senior vice president of sales.

Following the appointment of CEO Klaus Keysberg to the executive board of thyssenkrupp AG, Duisburg, Germany, the board of the thyssenkrupp Materials Services business area is being partly restructured. Martin Stillger will succeed Keysberg as chairman of the executive board of Materials Services. Keysberg oversees the businesses of Steel Europe and Materials Services. COO Ilse Henne is taking on a new position of chief transformation officer. The role of COO will no longer be filled.

Miller Fabrication Solutions, Brookville, Pennsylvania, named Paul Sorek as director of business processes. He succeeds Rich Steel, who was named director of lean manufacturing. Sorek oversees automation, engineering, process development and quality control. He spent the previous 15 years at a lumber company, including the last eight as its president.

Omar Chavez is now manufacturer’s representative for Heyco Metals, Reading, Pennsylvania, in Mexico. Chavez has experience marketing products such as clad metal, nickel products and cold-rolled steel.

Kevin Ramirez has joined SigmaTEK Systems, Cincinnati, as vice president of sales for North America. Ramirez has more than 20 years of production, cutting machinery and software experience, working in diverse roles such as CNC operator, support and service engineer and technical sales and account manager.

newproducts
The LT8.20 laser tube cutting system
Tube cutting system offers choices
The LT8.20 laser tube cutting system allows users to choose their preferred laser source, loader/unloader style and positioning of the peripheral equipment to maximize floor space. The LT8.20 can handle cutting diameters up to 9.5 in. and bar weight up to 27 pounds per foot. Featuring a 3D tilt cutting head, the LT8.20 performs high-precision angular cuts in round, square, triangular, l-beam and other special shapes.
BLM Group, Novi, Michigan, 248/560-0080, www.blmgroup.com.
Aluminum alloy coils await shipment at Arconic’s Davenport, Iowa, rolling mill.
Carpe Diem
While industry oracles and observers rarely have clear sight, metals producers possess the vision to bet on the future
BY corinna petry
T

hroughout North America and worldwide, economic and demand trends in 2020 may prove unpredictable (as usual), but there remains sufficient confidence among the producers of steel and aluminum to engage in mergers and put money into long-term growth projects. Modern Metals has tapped into discussions by CEOs from mining to finished flat-rolled and long products.

Let’s first look at announced mergers.

1. Cleveland-Cliffs Inc. and AK Steel Holding Corp. have agreed to a transaction under which Cliffs will acquire all shares of AK Steel common stock. The deal will combine Cliffs, North America’s largest producer of iron ore pellets, with AK Steel, which produces flat-rolled carbon, stainless and electrical steel products, to create a vertically integrated producer of iron and steel products.

servicecenters
Staying nimble
Building and maintaining relationships is as important as growth by capital investments and acquisitions
BY corinna petry
The company automated the packaging line associated with the slitter because the existing equipment created a bottleneck. The complete packaging line features a fully automatic banding and stretch wrapping system.
L

apham-Hickey Steel Corp. began creating its brand over 93 years ago in Chicago, and its reputation has grown alongside its 10 branches—four of which became part of the company less than two years ago.

Will Hickey, chief commercial officer for the fourth-generation, family owned service center chain, says continuing to offer excellent service to customers plays a paramount role in Lapham-Hickey’s strategic decisions. He cites a series of capital expenditures over the past three years.

coilprocessing
Rock steady
Slitting, blanking and packaging lines built to supply high-strength materials efficiently and safely
BY corinna petry
Calstrip Industries specializes in processing surface-critical applications.
Braner/Loopco’s slitting line at Calstrip Blytheville processes high-strength bare, prepainted and galvanized steel.
KEVIN software prepares slitter tooling setups and verifies that actual gauge and slit width tolerances are within customer order specifications.
A

utomatic for the People,” released by REM in 1992, was one of the most worn-out CDs I ever owned. There is not a bad song on that record. Calstrip Industries, likewise, is humming along with its extensively automated new coil processing plant in Blytheville, Arkansas.

Calstrip was founded in 1939 near Los Angeles as a strip producer with narrow rolling mills and annealing furnaces. In 1999, the company entered a new era by building a new slitting and sheeting facility in Santa Teresa, New Mexico, which is near both El Paso, Texas, and Juarez, Mexico, says Calstrip Chief Operating Officer Ed Camden.

coilcoating

Ambitions realized
Asset acquisitions, growing product line, equipment investments help one company leap into the future
BY corinna petry
S

upersize, modernize and optimize—these seem to be the connected goals for Vorteq Coil Finishers LLC. The coil coater recently closed on a major acquisition, the second inside of two years; has rebuilt a major operation in Tennessee; and is automating functions where it makes the most sense.

The acquisition of Western Metal Decorating, Rancho Cucamonga, California, closed in October 2019. This followed the May 2018 acquisition of Wheeling Service & Supply Inc. and the October 2016 purchase of Prior Coated Metals Inc. With seven facilities and nine coating lines, Vorteq now has the broadest geographical reach of any independent coil coater in North America.

lasertechnology
Flexible Harmony
Laser center addresses a wide variety of potential manufacturing bottlenecks
BY Lauren Duensing
F

lexible factory setups allow manufacturers to use automation to create a fully connected, smart production line. According to research from Deloitte Insights, “Smart factories go beyond simple automation. The smart factory is a flexible system that can self-optimize performance across a broader network; self-adapt to, and learn from, new conditions in real or near-real time; and autonomously run entire production processes.”

“Automation and autonomous processes have been a major growth point in the industry for several years,” says Ryan Welcome, who works for machinery manufacturer Trumpf Inc. as a TruConnect specialist for the TruLaser Center 7030. Companies are taking a “deeper look into total throughput of processing sheet metal parts,” he notes. “To really evaluate the process chain, we need to look at more than just linear cutting times.”

sawing/cutting
Engineering edge
Uncommon requirements drive custom designs
BY Paul Beha ,
HE&M Products Manager
O

ver the 55 years that HE&M has manufactured band saws, its team frequently becomes involved in sawing applications where a standard model just won’t do for the task. So the company has built numerous custom saws. This proved challenging but not insurmountable for the design and engineering staff because each of these builds had unique requirements, which made the results all the more rewarding.

Radioactive

In the early 1990s, a facility that had produced plutonium for nuclear ordnance since the 1950s was decommissioned in Colorado. During deconstruction, over 800 structures were demolished and 21 tons of weapons-grade material was removed. The demolition resulted in 1.3 million cubic meters of waste. Much of that waste was compressed into 3-foot cubes and buried.

All of Trend Publishing titles
All of Trend Publishing titles

partingshot

Shinjuku Miyabi Residence
Tokyo, Japan
 Located near central Tokyo, the Shinjuku Miyabi Residence hotel by Himematsu Architecture stands out from its surroundings due to its laser-cut façade of hemp leaf patterns. Made of 2-mm-thick aluminum, the panels are particularly evident at night. Set in the 150-mm space between the exterior wall and the hemp leaf façade, lighting brings out the the pattern. “Hemp has a very strong growing force and rapid growth speed as seen in nature,” says Himematsu Architecture. “Traditionally, the hemp leaf pattern has been used for clothes for newborn babies in Japan. This hotel has the hemp leaf pattern on its façade for the same meaning—we wish this hotel will grow and develop among the many travelers who enjoy Japanese culture.”

partingshot

Shinjuku Miyabi Residence
Tokyo, Japan
 Located near central Tokyo, the Shinjuku Miyabi Residence hotel by Himematsu Architecture stands out from its surroundings due to its laser-cut façade of hemp leaf patterns. Made of 2-mm-thick aluminum, the panels are particularly evident at night. Set in the 150-mm space between the exterior wall and the hemp leaf façade, lighting brings out the the pattern. “Hemp has a very strong growing force and rapid growth speed as seen in nature,” says Himematsu Architecture. “Traditionally, the hemp leaf pattern has been used for clothes for newborn babies in Japan. This hotel has the hemp leaf pattern on its façade for the same meaning—we wish this hotel will grow and develop among the many travelers who enjoy Japanese culture.”
ModernMetals
President/Publisher Michael D’Alexander
Editorial
Editor-in-Chief
Corinna Petry
Senior Editor
Gretchen Salois
Senior Editor
Lynn Stanley
Senior Contributing Editor
J. Neiland Pennington
Contributing Editor
Lauren Duensing
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Modern Metals® (ISSN 0026-8127, USPS 357-640) January 2020, Vol. 76, No. 1 is a registered trademark of Trend Publishing Inc. Modern Metals® is published 11 times a year by Trend Publishing Inc., with its publishing office lo­cated at 123 W. Madison St., Suite 950, Chicago, Illinois 60602, 312/654-2300; fax 312/654-2323. Michael J. D’Alexander, President, Trend Publishing Inc. Copyright 2018 by Trend Publishing Inc. All rights reserved under the United States, International, and Pan-American Copyright Conventions. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means—mechanical, photocopying, electronic recording or otherwise—without the prior written permission of Trend Publishing Inc. This publication is sent free of charge to qualified subscribers. Single copies $14. Paid subscriptions in the U.S. $125/year. Canada, $145/year. Foreign subscriptions, $180/year surface mail and $260/year air mail. If interested in a free subscription go to www.modernmetals.com to see if you qualify. Periodicals postage paid at Chicago and additional mailing offices. POSTMASTER: Send address changes to Modern Metals® c/o Creative Data Services, Inc., 440 Quadrangle Drive Suite E, Bolingbrook, IL 60440. Printed in the USA.
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