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 Emirates.
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 leader.
"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.
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.