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Cargill and Robinson Steel to Form Joint Venture
08/24/2007 - Cargill will enter into joint venture with Robinson Steel to produce and distribute RPS Sheet and Plate under license; Cargill will supply the hot band plus sales and marketing support, and Robinson will manage RPS production.
Cargill has agreed to enter into a joint venture with Robinson Steel to produce and distribute RPS® Sheet and Plate under license. Terms of the deal were not disclosed.
Cargill will source the hot rolled band and provide all of the sales and marketing to support the new venture, and Robinson will manage production at the facility.
The venture’s initial capacity of 200,000 tons per year of cold-reduced cut-to-length hot-rolled steel will be produced at a jointly owned 100,000-ft2 production facility located in Granite City, Ill. As a licensed distributor, Cargill will have access to production from Robinson’s other Granite City processing line and the East Chicago, Ind., facility.
“Our strategic relationship with Robinson will allow us to immediately increase our product offerings to meet our customers’ growing demands for panel flat sheets and plates with RPS quality, the recognized industry standard,” said Mike Taylor, President of Cargill Steel Service Centers. “This venture is perfectly aligned with our growth strategy and expands and extends our market leadership position in the processing of hot rolled steel bands.”
“We are proud that Cargill selected RPS to complete its product line,” said Paul Labriola, President and CEO of Robinson Steel, “and we are excited to pursue the opportunities that will result from bundling our unique value proposition with Cargill’s global iron and steel supply chain and risk-management capabilities.”
Both Robinson and Cargill have built a strong network of processing and distribution centers. In addition to its cold reduction lines, Robinson Steel operates seven RPS Laser Production and Distribution Centers, providing precision-cut parts to original equipment manufacturers and fabricators.
In April 2007, Cargill acquired the assets of Loudon, Tenn., based Olympic Metals, which offers stretcher-leveled, cut-to-length sheets, blanking and coil slitting capabilities. Cargill currently operates seven flat rolled steel service centers with over 245 employees, focusing on hot rolled band, pickled and oiled, cold-rolled and tin mill products.
Officials expect to close within the next 45 days.
Cargill is an international provider of food, agricultural and risk management products and services. With 158,000 employees in 66 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed. Cargill’s seven flat rolled steel service centers are located in East Chicago, Ind.; Houston, Texas; Tulsa, Okla.; Panama City, Fla.; and Loudon, Memphis, and Nashville, Tenn.
Headquartered in East Chicago, Robinson Steel is an innovative manufacturer and distributor of RPS Laser Cut Parts and RPS Sheet and Plate from 10 locations through out North America. Robinson Steel’s seven RPS Laser Production and Distribution Centers are located in Pomona, Mo.; Davenport, Iowa; Arlington, Texas; Statesville, N.C.; Opelika, Ala; East Chicago; and Granite City, Ill.
