Tube City IMS Lands $84 Million in Contracts

The mill services company Tube City IMS, a subsidiary of TMS International Corp., Pittsburgh, has secured two new contracts totaling more than $84 million in revenue over the life of the contracts at expected production levels.

The contracts are for outsourced services at steel mills in Dunkerque, France and Abu Dhabi, United Arab Emirates.

Services under the seven-year oxycutting contract in Dunkerque, which began July 1, 2011, include handling, preparation and sizing of revert scrap, using Tube City IMS’ New Cut process, where scrap is processed to charging size in an enclosed environment to capture emissions from the cutting operation. The contract is the second mill services contract TMS has implemented at the mill site this year.

In Abu Dhabi, TMS has contracted to begin a seven-year material handling and waste management agreement through its joint venture entity Tube City IMS Middle East Holding. The contract marks the company’s first mill services operation in the Middle East/North African region. Services under the contract are scheduled to begin September 1, 2011, and will include material handling, hot pit furnace slag excavation, metal reclamation, scrap management, DRI handling, billet transportation and logistics and a number of other auxiliary services.

“We believe the steel industry in the Middle East/North African region will continue to grow at strong rates over the coming years. These new contract wins demonstrate the company’s global breadth and depth and illustrate the continuing confidence our customers place in us and our outstanding service. We are excited to be able to serve both of these important customers in these regions,” says Raymond Kalouche, COO and president of TMS’s Mill Services Group.

Kalouche adds, “This is an exciting time for the company. Including these contracts, we have won a total of six new contracts to date in 2011, representing more than $147 million of cumulative revenue. As the outsourced steel services market continues to expand globally, TMS is well positioned to service these new markets with a diverse team that has significant international experience and delivers the outstanding performance that our customers and shareholders expect.”