Reliance Steel & Aluminum Co. will continue to spend the
majority of its investment dollars in North America, according
to chairman and chief executive officer David H. Hannah.
"What we found is that
going to a foreign country is expensive. The risk levels are
higher and returns are lower than we would get here, especially
in the U.S. As long as there are growth opportunities in North
America, we will focus on that," he told AMM.
Less than 2 percent of
Los Angeles-based Reliances revenue comes from branches
outside North America.
largest service center chain is appreciatingwith the help
of acquisitions such as Fort Lauderdale, Fla.-based Metals USA
Holdings Corp. (2013) and Spring, Texas-based Continental
Alloys & Services Inc. (2011)the metals consumption
it is experiencing in the oil patch and the auto industry.
"Our presence in
Canada is related to the energy side of our business. EMJ
(subsidiary Earle M. Jorgensen Co.) has a presence, (as does)
the old Encore Metals and Team Tube businesses. We like that
presence up there. Although (energy-related metals) demand is
cyclical, long term it has legs," Hannah said, noting that the
oil patch tends to consume more higher-value bar and tube
Further expansion in
Canada "depends on the opportunity. We dont have a goal
of acquiring a pre-set amount of business in Canada," Hannah
exposure to Mexico is through Acero Prime SRL de CV, a joint
venture with Pittsburgh-based U.S. Steel Corp. and New
York-based Mitsui & Co. (USA) Inc. Acero Prime, operated by
Chicago-based Feralloy Corp., which Reliance acquired with PNA
Group in 2008, has three flat-rolled toll processing
automotive-related, with some appliance manufacturing sales,"
Hannah said. "Thats our biggest business in Mexico. With
the auto industry taking off there, Acero Prime is well
positioned to take advantage of it. Continental Alloys also has
a business in Mexico serving the energy business, but it is
small so far."