Esmark Steel Group, the wholly owned steel services subsidiary of diversified holding company Esmark Inc., on September 28 announced that it is consolidating its U.S. service center operations under the Esmark Steel Group banner to better serve its growing customer base and streamline operations.
Under the operations consolidation Century Steel and Sun Steel in Chicago Heights, Ill.; Chicago Steel & Iron in University Park, Ill.; and Independent Steel in Cleveland, Ohio, will operate as Esmark Steel Group. The Illinois operating companies will be called Esmark Steel Group Midwest, while Independent Steel will operate as Esmark Steel Group Northeast.
In making the announcement Thomas Modrowski, chief executive officer of Esmark Steel Group, said the consolidation initiative was made for several important reasons. “The Esmark brand has significant equity in the steel business due to our long history and high profile. We believed it was important to focus all our operations on better serving our customers under one brand and one operations team. We think this consolidation will make it easier and more efficient for our growing customer base to do business with us,” he said.
In May 2010, Esmark Steel Group acquired the assets of Century Steel and Sun Steel in Chicago Heights, Ill., and Independent Steel in Cleveland. In 2009 Esmark acquired Amtex Steel in University Park and renamed the flat-rolled products company Chicago Steel & Iron.
About Esmark Steel Group
Esmark Steel Group, a wholly owned subsidiary of Esmark, Inc., was formed in November 2009 to identify and pursue strategic acquisitions in the steel service center sector in the Midwest. The formation marked a return to the steel industry since Esmark sold its Wheeling-Pittsburgh Steel Corporation and network of 10 Midwest service centers to OAO Severstal in July of 2008 for $1.23 billion. In addition to its $10 million acquisition of Amtex Steel in November 2009, Esmark also acquired Meadville, Pa.-based Excalibur Machine Company Inc. for $3.5 million in cash. Excalibur Machine is a precision machining and steel fabrication firm that supplies parts, subassemblies and materials handling equipment to Original Equipment Manufacturers (OEMs) engaged in the transportation, materials handling, heavy construction and power generation industries. Excalibur is now part of Esmark’s Industrial Group subsidiary.
