Company says revenue will be more than $179 million over the length of the contracts.
TMS International Corp. has secured two new mill services contracts with steel companies in the United States and Mexico. The two contracts, expected to total more than $179 million over the length of the contracts, vary between 10 and 15 years and are for a variety of outsourced services with customers at steel mills in the Unites States and Mexico.
TMS, based in Pittsburgh, says both contracts are at Greenfield sites and expand the company’s presence in the United States, where the company has on-site mill services operations in 57 of the United States’ 115 steel producing mills. The company also has seen its business in the Latin America region grow significantly.
Services under TMS’ new contract in Alabama include slag pot transportation, metallic recovery, stainless slag processing, aggregate marketing, revert cutting, melt shop cleaning and other auxiliary services.
In Mexico, the company has contracted to commence a new agreement with a regional steel company. Services under the contract in Mexico include slag pot transportation, metallic recovery, slag processing, melt shop cleaning, tundish cutting and other auxiliary services. This contract marks the company’s sixth operation in Latin America, complementing its existing mill services operations in Mexico, Trinidad and its procurement office in Monterrey, Mexico.
Services for both contracts are expected to begin in the fourth quarter of 2012 and are anticipated to reach projected capacities in 12 to 18 months.
“These new contracts reinforce the global scale of our business and highlight our continuing success in meeting the needs of growing markets," Mill Services Group president and COO Raymond Kalouche, says. "They also confirm the continued confidence that the leading steel companies around the globe have in our outstanding services, our skilled workforce and our exceptional performance."