May 2024 | thyssenkrupp Materials Services opens its fourth steel service center in the USA. The mill-independent materials distribution and service provider celebrated the opening of its new steel service center in Sinton.
The company invested a total of EUR 30 million (approx. USD 32 million). The new location will be part of the network of the US unit thyssenkrupp Materials Services NA.
A key objective of the new service center is to support the materials and supply chain management needs of manufacturing companies across multiple markets in the region and neighboring Mexico, which previously relied on materials with long transportation routes due to their geographic location.
Previously, the nearest producing mill was over 700 miles (1,100 kilometers) away. Due to its geographic location, the Sinton site is an important strategic addition to the three existing steel service centers in Richburg, South Carolina; Woodstock, Alabama; and Detroit, Michigan. The move continues thyssenkrupp Materials Services’ expansion in North America, where the company has invested more than EUR 100 million in the past two years.
“North America is an important growth market for us, which is why we are continuously expanding our position as a strategic partner to the automotive industry,” said Martin Stillger, CEO of thyssenkrupp Materials Services, at the opening of the site. “With our new steel service center in Sinton, we are ensuring the flexible and reliable supply of high-quality materials to existing and new customers. In line with our ‘Materials as a Service’ strategy, we take over the efficient and secure management of supply chains, while our customers can concentrate on their core business.”
Exclusive services for steel processing industries
The new service center is located on the premises of Steel Dynamics, Inc., one of the largest steel producers in the USA.
“The logistically favorable location – including direct rail and port access – in Sinton allows us to bridge the gap to markets that were dependent on distant suppliers. We are expanding our geographic reach in high-growth markets with a high demand for steel,” says Steve McGee, Chief Operating Officer of thyssenkrupp Steel Services.
The customers, primarily in automotive, HVAC, and construction markets will have beneficial access to the materials and can thus secure competitive advantages. In addition to an almost 15,000 m² building, the investment by thyssenkrupp Materials Services also includes new state of the art slitting and cut-to-length lines. The mill has the capability to produce advanced high-strength steel and other grades that are rarely found in the United States.
The steel service center uses wind and solar power as well as electric forklifts to deliver on the company’s corporate commitment to reduce carbon emissions. The site spans nearly 33 acres and has adequate space for several future expansions. The new plant commenced operations in April 2024, and employs 15 dedicated employees.
thyssenkrupp Materials NA is a leading North American materials distributor and integrated supply chain solutions provider. The company has a network of more than 75 metal and plastic service centers serving approximately 55,000 customers in North America with a comprehensive range of non-ferrous metals, copper, brass, steel and semi-finished plastics.
About thyssenkrupp Materials Services
thyssenkrupp Materials Services is one of the world’s leading mill-independent materials distribution and service providers with around 380 locations – including around 270 warehouse sites – in more than 30 countries. In the 2022/23 fiscal year, the company generated sales of € 13.6 billion and earnings of € 178 million. The versatile range of services offered by the materials experts allows customers to focus even more strongly on their individual core businesses.
As part of its strategic further development “Materials as a Service”, the company is focusing on the supply of raw materials and materials as well as products and services in the area of supply chain management. From 2030 on, Materials Services shall operate on a climate-neutral basis.
