CHICAGO Alliance Steel LLC plans to open a service center in Decatur, Ala., to strengthen its presence in the region.
The Chicago-based distributor of sheet products has formed a subsidiary, Nexus AG Holdings LLC, which is buying a 320,000-square-foot building on 41 acres at the former Delphi Automotive LLP complex. Alliance will occupy about half of the plant, with the remainder leased to tenants.
"We have a large, diverse customer base in the region, and this will allow us to service them better and to continue the substantial growth we have had in the region," president Andy Gross told AMM.
At start-up, Alliance will operate a new 72-inch-wide Braner USA Inc. slitting line featuring a triple-turret head with 10-inch arbors and an in-line precision cluster leveler. The line will accept coils up to 30 tons, and will have cutting capacities of 0.01 through 0.25 inch.
Alliance also will install a Red Bud Industries Inc. cut-to-length line capable of cutting up to 60 inches wide in gauges from 0.015 to 0.15 inch. The service center also will house a narrow slitting line to produce slit coils under 1 inch wide.
The building features five drive-in bays, four recessed bays, three overhead cranes with a load capacity of 50 tons and rail service that will allow up to six rail cars into the building simultaneously.
"It is an ideal location for any manufacturing company that utilizes flat-rolled steel, as (one can) significantly reduce its freight-in costs," Gross said. "We do have a lot of competition in the region but we already have a substantial local presence, having served customers there for over 10 years. The new plant will help us build on our long-term relationships."
The Decatur facility, which will cost about $10.8 million, will stock hot-rolled, hot-rolled pickled and oiled, cold-rolled and coated products, Gross said.
It will be Alliances fourth service center. It opened its second location in Atlanta in 2008 and its third in Memphis, Tenn., in 2010.