center operator Triple-S Steel Holdings Inc. has taken over
long-term leases on three former ONeal Steel Inc.
facilities, the company said.
The facilities in
Grand Junction and Commerce City, Colo., and Farmington, N.M.,
have been operating under the Intsel Steel West division of
Triple-S Steel since Oct. 14.
"We just took over the
leases ONeal had and hired their people," Triple-S Steel
chief executive officer Gary Stein told AMM Oct. 15.
"Its a good outcome for ONeal, for their employees
and for us."
ONeal Steel announced in September that over the next 18
months it planned to close four warehouses far from their core
geography, which raised freight costs and made next-day
deliveries difficult (
amm.com, Sept. 24). The fourth facility, in
Clifton, N.J., is not part of Triple-S Steels deal.
"This is just
geography that works better for us. We have been operating
service centers in Denver and Salt Lake City, Utah, for years,"
Stein said. The three locations have a combined space of
125,000 square feet and stock "mostly the same products we
already sell: carbon structural sections, plate and sheet."
approached ONeal after its announcement, Stein said.
"This deal speaks to the fact that we are old-line (privately
held) steel companies that can make decisions happen
Stein could not yet
estimate how much revenue the three locations will generate.
"We bought the equipment and inventory, took over leases and
hired the people," he said, but did not purchase the
branches business records.
Steel acquired Macon, Ga.-based General Steel Inc. during the
(amm.com, June 4).
Prior to being
acquired by ONeal Steel in 2006, the Colorado and New
Mexico warehouses were operated by the McCallin family as
Timberline Steel. Dan McCallin has joined Triple-S Steel to aid
in integration and growth initiatives.