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Calstrip expands reach with Schaeffer buy

Mar 10, 2014 | 05:39 PM | Frank Haflich

Tags  Calstrip Industries, Western Flat Rolled Steel & Processing, Schaeffer Industries, Tom Nelis, Frank Haflich

LOS ANGELES — Calstrip Industries Inc. has agreed to purchase Schaeffer Industries Inc.’s Western Flat-Rolled Steel & Processing operation in Mira Loma, Calif., for an undisclosed amount.

The City of Commerce, Calif.-based distributor and processor said the acquisition will give it greater access to Mexico while preserving its traditional Los Angeles-area market.

The deal is expected to close June 1, Calstrip said in a statement. Mira Loma-based Schaeffer Industries will continue to operate its facilities in Stockton, Calif., and Lindon, Utah.

The Western Flat-Rolled Steel facility includes slitting and other equipment, Calstrip president Tom Nelis told AMM.

Calstrip’s plant in City of Commerce is in the Los Angeles market, while Mira Loma is inland, where an increasing number of steel plants have moved in recent years, he pointed out.

Nelis added that the new plant is near major highways and will give Calstrip improved access to its traditional customers in California, as well as to Mexico and Calstrip’s Southwest Steel Coil division in Santa Teresa, N.M.

While Southwest Steel Coil serves Mexican customers from El Paso, Texas—as well as in El Paso itself—Nelis noted that the move to Mira Loma will give Calstrip greater access to the western state of Baja California Sur, Mexico.

"We don’t want to give up our ability to service our Los Angeles customers, yet we can’t ignore Tijuana and Tecate," Nelis said, referring to local Mexican markets closer to its new California site than to Southwest Steel Coil.

There are no immediate plans to move Calstrip out of its City of Commerce plant into Mira Loma, although it is likely to "relocate" that operation to the new site in the longer term, Nelis said.

The expansion will allow Calstrip to "better service our customers in this region and positions us closer to the U.S.-Mexico borders, as well as our Santa Teresa operations," Nelis said in the statement.

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