LOS ANGELES Southwest
Steel Coil Inc. is expanding its plant by more than 45 percent
as it awaits its second major new piece of equipment this
The Santa Teresa, N.M.,
flat-rolled distributor and processor, which has pretty much
reversed its business model since starting up in 2000, has
ordered a Braner USA Inc. slitting line. The 60,000-pound,
72-inch by 0.25-inch/0.015-inch Loopco slitter is expected to
arrive when the companys building expansion to 110,000
square feet from 75,000 square feet is completed in October.
The cost of the investment wasnt disclosed.
Earlier this year, Southwest
Steel Coilwhich already has a 60-inch Braner
slitterinstalled a 60-inch Iowa Precision multiblanking
line to accompany an existing 60-inch sheeting line.
Southwest Steel Coil president
Ed Camden said the companys growth has come primarily
from helping to create "a more local supply chain" by capturing
business formerly provided to original equipment manufacturers
(OEMs) by brokers and service centers from outside its
The company, located close to El
Paso, Texas, started out primarily as a toll processor but has
turned this model around. Today, 90 percent of its business
comes from reselling pre-processed, just-in-time stock, and
just 10 percent from toll processing, Camden said.
The subsidiary of Los
Angeles-based Calstrip Industries Inc. performs slitting,
cutting to length and blanking of carbon and stainless steel,
and aluminum from master coils of 40,000 to 45,000 pounds. Its
customers include OEMs mainly in the border cities of Mexico,
but also in New Mexico, Arizona and Texas.
Camden, who joined Southwest
Steel Coil in 2011, is a 22-year steel industry veteran who
previously served with the former Armco Steel Co., Edgcomb
Metals Co. LLC and Lafayette Steel & Aluminum Co.