Mill services contracts total more than $266 million.
TMS International Corp., the parent company of the steel mill services company Tube City IMS Corp., has secured new mill services contracts totaling more than $266 million in revenue over the life of the contracts. That revenue level depends on expected production levels and commercial sales, with aggregate growth capital investments of about $52 million, according to the company.
A news release from TMS says the terms of the contracts and a new joint-venture vary and are for a variety of outsourced services at steel mills in Poland, Belgium, Malaysia and the United States.
TMS’ contract in Poland marks its first mill services operation at a steel plant in the country, according to the company. The long-term contract includes several services, including transportation, processing and sales of slag, as well as scrap handling, receiving, inventory control, loading and delivery to charge buckets.
Services under the contract are scheduled to be phased in beginning March 2013 with the processing and metal recovery from an existing slag bank. Full implementation of all services scheduled for the second quarter of 2014.
TMS also has contracted to provide additional services at steel mills in Belgium and the United States, expanding the company’s presence with existing customers in both countries.
“This new contract win in Poland further expands and solidifies TMS’s relationship with a leading global steel producer and reaffirms that steel producers globally are increasingly recognizing the benefits of outsourcing non-core services,” says Raymond Kalouche, TMS’ president and CEO. “We are pleased with these new contracts and look forward to continuing to support our customers with our world-class service globally. We will build on these successes by continuing to expand into new markets as we create value for our customers and shareholders.”
The company also announced that it has purchased a non-controlling interest in a joint venture that will provide mill services to one of Malaysia’s largest steelmakers. The services under a contract with the steelmaker include metal recovery, slag processing and slag sales.
“We are delighted to have established an initial presence in the growing and strategic Malaysian steel producing market and we look forward to working with our new partners to provide state-of-the-art service to our customer,” Kalouche says.
With the new contracts, TMS says it now provides mill services at 81 customer sites in 11 countries and operates 36 brokerage offices from which it buys and sells raw materials in five continents.