NEW YORK TMS
International Corp., parent of Tube City IMS Corp., has landed
new steel mill service contracts in the United States and
abroad worth $91 million over the life of the contracts.
The Pittsburgh-based mill
services provider and scrap broker signed a deal with an
undisclosed mill in Tennessee and expanded its relationship
with ThyssenKrupp Stainless USA Inc. in Alabama, as well as
with mills in France, Mexico, South Africa and the United Arab
Daniel Rosati, chief financial
officer of TMS, told AMM the contract results "were
consistent, and steady with the last couple of years," adding
that he is bullish about growth potential in the mill services
sector, even in the United States, where TMS is a market
"Were seeing growth in
best practices for outsourcing steel mill services on a global
scale," he said. "There are opportunities for us in the mature
outsourcing system here at home and the fast-expanding sector
abroad. And we go anywhere."
TMSs deal with the
Tennessee mill, which began this quarter, includes scrap and
slag handling services, metal recovery and slag sales. The
contract, along with the upgraded ThyssenKrupp deal, makes up
the bulk of TMSs new contract value, according to
Rosati gave credit for the
numerous expanded contracts to successfully up-selling existing
customers to a broader range of services. For instance,
ThyssenKrupps Calvert, Ala., mill upgraded its existing
slag recovery arrangement to include scrap receiving,
inspection, handling and charge bucket loading starting in
early 2013, he said.
Mills in Monterrey and Monclova,
Mexico, chose to outsource internal transportation and
logistics for intermediary and finished products to TMS.
Revenue rose 12.5 percent in
TMSs first quarter, totaling nearly $747 million, but net
income plunged 98.2 percent to just $113,000 due to costly debt
refinancing (AMM, May 8). TMS is scheduled to release
its second-quarter results Aug. 2.