CHICAGO Charter Steel won zoning approval for a $15-million coil storage expansion at its Saukville, Wis., facility to better protect product surfaces and bring off-site warehousing back in house, eliminating extra coil handling and logistics costs.
Charter makes wire rod in 214 chemistries and 121 diameters from 3/16 to 19/16 inches. Rolled products are shipped directly to customers as "green rod coil" or drawn, pickled or annealed on site before shipping.
After analyzing its storage capacity, Charter determined an additional 7,074 tons of outside storage and 3,616 tons of inside storage are required to meet 2014 sales projections, according to the zoning application.
More demanding quality standards and greater volumes of surface-sensitive steels are driving the need to store coils with less coil-to-coil contact than in the past, Charter said in the application. "This requires more inside and outside storage to store the same quantity of product."
The company also wants to eliminate the operating inefficiencies inherent in running an off-site warehouse roughly 5 miles away in Grafton.
"Finished product is trucked to the off-site warehouse for final shipping, (which) results in additional coil handling. The off-site warehouse is an unsustainable solution due to negative impacts on costs and coil quality, which will ultimately result in lost business to Charter Steel," according to the application.
In the first two phases of construction, Charter will build a 69,000-square-foot addition for inside coil storage and a shipping office, a 12,775-square-foot addition with two loading docks for shipping and fill a wetland area to add 80,000 square feet of outside storage.
The company will also relocate, pave and widen truck lanes and road access points, create two queuing areas for trucks awaiting loads and two truck load tie-down areas. Phase three would include a 30,240-square-foot addition for inside coil storage and an 8,200-square-foot addition to the green rod shipping building.
Ten to 20 new shipping personnel could be hired after phase three is completed. The facility currently has a staff of 650.
Saukvilles Industrial Review Board approved Charters site, building and stormwater management plans June 20, economic development and planning director Marilyn Haroldson told AMM. "We are excited about (Charter) anchoring their roots even deeper," she said.
The companys project manager couldnt be reached for comment.