Thyssenkrupp Materials is setting up a new steel service center at the site of US steel producer Steel Dynamics’ new mill in Sinton, Texas, and is expanding further at existing service sites in the US, it said Oct. 19.
Thyssenkrupp Materials will manage the supply chain between the steel plant and individual OEMs — in particular for the automotive industry. The investment of around Eur28 million includes a building with an area of 14,000 sq.m and processing equipment for slitting and cut-to-length of flat steel.
The Sinton mill is still under construction and Steel Dynamics said steel output at the site is expected before the end of 2021 with production of 2 million-2.2 million st in 2022.
Thyssenkrupp Materials is investing over Eur70 million in the expansion of its service business in total in the US.
The company is also expanding capacities, processing and supply chain services at its steel service centers in Alabama, Wisconsin and Tennessee, looking to expand further to gain greater market share in the industry.
“We now want to use our affinity for services in particular to improve our market position even further — if possible also with further acquisitions. Today we are already number three in America. That is not enough for us,” the company’s chairman Martin Stillger said.
Business in North America alone accounts for around 25% of total sales of Thyssenkrupp Materials globally. The North America business sources material from local suppliers to keep transport routes and costs low, a Thyssenkrupp Materials spokesperson told S&P Global Platts.
Thyssenkrupp Materials in Europe sources around 10% of its steel from the Thyssenkrupp Steel Europe mills in Germany which are primarily distributed to the German market.
Thyssenkrupp Materials is the distribution arm of German’s Thyssenkrupp.
— Laura Varriale