Steel Technologies Inc.
Steel Technologies is a supplier of steel to the automotive industry. The company was founded in 1985 by Merwin Ray and has 31 facilities in North America. Its largest market is automobile supply. Its competitors include Loparex, Kloeckner Metals, Eastern Metal Supply, Mactac North America, and Biery Cheese.
Automobile supply is the largest market for steel technologies
Steel is a primary component of automobile body structures and chassis. Its high strength and high fuel efficiency means that it is a strong, versatile material that will remain a mainstay of the automobile industry even as we transition to more fuel-efficient electric vehicles. As we continue to improve the performance of these vehicles and reduce their weight, we will continue to see new uses for steel. Advancements in battery technology, lightweighting, and energy efficiency are allowing us to achieve our light-weighting goals more economically.
The automotive steel market is split by vehicle type. These include light commercial vehicles, passenger cars, heavy commercial vehicles, and two-wheelers. Among these segments, the passenger vehicles segment captured the largest market share in 2016, and is expected to continue to hold a large share through 2030, driven by an increase in the sales of passenger cars.
The automotive industry is one of the largest markets for steel technologies. Although the automotive industry is fragmented, there are a few major players in the market. ArcelorMittal, ThyssenKrupp, Nippon Steel, and Hyundai Steel are among the most significant participants. However, there is a high degree of competition among these companies.
Steel Technologies’ primary market is the automotive supply industry, accounting for nearly forty-three percent of the company’s total revenue. The company’s other major markets include the agricultural/lawn and garden industry and the appliance/HVAC industry. The automotive direct market represents about eight percent of the company’s sales. The company has 21 manufacturing facilities strategically located across the United States and Mexico.
As the automotive industry grows, demand for stainless steel increases. Its high strength and corrosion resistance make it a great material for different automotive parts. The World Steel Organization predicts that stainless steel will become the standard for catalytic converters, suspension, and bodywork. Increasing demand for environmentally friendly materials will further fuel the stainless steel alloy market in the automotive industry.
Merwin Ray founded the company in 1985
In 1985, Merwin Ray founded a company called Steel Technologies. At the time, the company’s plant was located in Madison Heights, Michigan. Later, it relocated to Canton Township, Michigan, where it now produces automotive steel products such as door locks, steering column components, and safety-belt buckles. Under the leadership of Ray the elder, Steel Technologies achieved profitability for 29 straight years.
The company went public in 1985
In 1985, Southern Strip Steel changed its name to Steel Technologies and went public. By the end of the year, the company generated over $50 million in annual sales. The company was headquartered in Louisville and operated manufacturing facilities in Eminence, Peru, and Madison Heights. At the time, Merwin was the president and CEO. He was succeeded by his son, Bradford, who became vice chairman.
After going public, the company expanded its manufacturing operations and added new plants. In Michigan, a plant was opened to process automotive steel. The company had sales of $85.9 million in 1987. However, sales dropped to $129 million in 1990 due to the recession and a slowdown in the auto industry. Despite this dip in sales, the company remained profitable. It posted a net income of $3.5 million in 1991. In addition, it continued to invest $50 million in new plants.
Steel Technologies Inc.’s largest market is the automotive supply industry, which accounts for more than 43 percent of total revenue. Other markets include appliance/HVAC and the agricultural/lawn and garden industries. The company has 21 plants located in strategic locations in the United States and Mexico. However, a decline in the steel market forced the company to close a pickle line in Decatur, Alabama.
Today, steel production in the United States is increasing. The steel industry has also undergone many mergers and acquisitions in the past several decades. The United States Steel Corporation, for instance, was founded in the early 1900s and merged with other steel companies by the mid-1960s. It also became the world’s largest recycler of scrap steel.
It has 31 facilities in North America
Steel Technologies is a steel producer, intermediate steel processor, and manufacturer of automotive component parts with operations in North America. The company has 31 facilities across the United States and Canada and sells its products primarily to industrial customers. The company operates as a single reportable segment, and its investments in unconsolidated affiliates are accounted for using the equity method based on a percentage of common ownership.
The company is Louisville-based, with offices in Portage and Mishawaka. It employs around 1,850 people in the U.S., Canada, and Mexico. Its Crawfordsville facility is expected to be fully operational by the end of next year. It has other Indiana facilities in Greensburg, Mishawaka, and Portage. It offers additional incentives to prospective employees, including a $100,000 tax credit contingent on hiring plans.
The deal also involves Nucor’s plans to build a greenfield flat rolled processing facility in Monterrey, Mexico. The project will also include slitting, pickling, and cut-to-length capabilities. It is not clear yet how many jobs will be created by the partnership.
The company uses a variety of advanced technologies to cut and shape steel. For example, the company uses a multi-head slitting machine to produce multiple widths and lengths. The steel is then heated in a 100% hydrogen furnace, which softens the material. Once the steel has been softened, it is then shaped to exact specifications. Blanking, which creates flat, slit shapes, is another process Steel Technologies uses. This process involves precision tools and dies.
It manufactures flat-rolled steel products
Steel Technologies manufactures and sells a wide variety of flat-rolled steel products. Its products include cold-rolled strip, hot-rolled sheet, and pickled and oiled sheet. It also offers specialty coated steel products. It serves customers around the world. The company is headquartered in Louisville, Kentucky.
Steel Technologies’ largest market is the automotive supply industry, which accounts for 43 percent of its overall revenues. Other markets include the appliance and HVAC markets and the agricultural and lawn and garden markets. The company has 21 strategically located facilities in the United States and Mexico. Despite its growth, the company is facing challenges, including a weakened steel market.
Steel Technologies expanded its operations in the mid-1990s, adding a presence in Mexico. In June 1994, it acquired 80 percent of the common stock of Transformadora y Comercializadora de Metalels, S.A. de C.V. (TCM), which later became known as Steel Technologies de Mexico. This acquisition included a plant in Monterrey, Mexico. After establishing a presence in Mexico, the company began adding equipment to its plant. It was also looking to expand its reach and serve long-standing customers that were taking advantage of cheap labor in Mexico.
The recent growth of the flat-steel industry has brought significant changes to the industry. New technologies have allowed production costs to be lowered and product quality improved. The recent consolidation of the industry has also helped share technological innovations between plants. Mitsui de Mexico is taking advantage of its existing infrastructure and established market in Mexico by channeling their efforts toward selling steel to the oil extraction and energy generation industries.
A countervailing duty order was issued on certain countries’ imports of certain types of flat-rolled steel products. Some countries, including Brazil, India, and the Republic of Korea, have received countervailing duty orders on these products.