Consolidation to return to copper sector: ABC

Apr 12, 2013 | 12:08 PM | Barbara O'Donovan

Tags  copper, service centers, Copper and Brass Servicenter Association, Daniel Kendall, ABC Metals, consolidation, housing, auto Barbara O'Donovan

AMELIA ISLAND, Fla. — Consolidation in the copper service center industry is likely to pick up over the next few years, ABC Metals Inc. president Daniel Kendall told AMM.

There will be opportunities for consolidation as baby boomers begin to retire without heirs willing to take over their businesses, Kendall said April 12 on the sidelines of the Copper and Brass Servicenter Association’s annual convention in Amelia Island. "If they don’t have a line of succession ... between now and 2025, I see consolidation in copper metal fabrication growing."

Unlike previous eras of consolidation, when service centers bought other service centers, Kendall sees future consolidations differently, with mills doing the buying. "Start thinking of consolidation in 3-D rather than 2-D," he said.

Copper and brass mills might choose to vertically integrate—securing their supply chains—should service centers be available for acquisition, Kendall said. It’s not the current strategy at ABC Metals, but "it does affect how we plan things."....

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