Mill-yard linkage key to steel-scrap ties

Nov 16, 2007 | 04:00 AM | Paul Schaffer

The potential headaches of a steel producer owning a recycling company can be avoided if the mill develops the right relationship with its independent scrap suppliers, Randy J. Ehret, manager of strategic sourcing at Timken Co., Canton, Ohio, said.

Ehret offered that view recently while sharing a podium with an executive from Steel Dynamics Inc. (SDI), the mini-mill that recently purchased scrap chain OmniSource Inc. The two speakers were at AMM's Scrap Conference in Scottsdale, Ariz.

"If your supply base is truly committed to insuring supply at a competitive price, and they're adding value, there may not be a need to backward integrate," Ehret said, adding that Timken's close liaison with suppliers includes rigorous monitoring.....

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