Optima seeks captive supply from KES
Nov 26, 2012 | 10:49 AM
| Michael Cowden
CHICAGO Optima Specialty Steel Inc.s planned acquisition of Kentucky Electric Steel LLC (KES) should give the company better control over its supply chain as it tweaks the Ashland, Ky., facility to add special bar quality (SBQ) round capacity to the mills capabilities, the companys top executive said.
SBQ rounds are used as feedstock for both the seamless tubular products manufactured by Michigan Seamless Tube LLC and the cold-finished bar products made by Niagara LaSalle Corp., the two companies that were brought together to form Optima Specialty Steel, company president and chief executive officer Kevin Stevick told AMM in an exclusive interview following the announcement of the acquisition (amm.com, Nov. 20).
The certainty of having a captive SBQ supply should give Optima Specialty Steel a competitive advantage that it didnt have when it had to go out on the open market to buy feedstock for Niagara LaSallethe biggest single customer of KESand Michigan Seamless, Stevick said, noting that Optima combined the two companies in part to more efficiently purchase SBQ bar.....
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