Ryerson to Expand Presence in U.S. and China
01/30/2009 - Ryerson announces plans to open new service center locations in Utah and Texas, and that it also has doubled its stake in Chinese venture VSC-Ryerson China Limited from 40% to an 80% controlling interest.
Ryerson Inc. announced plans to open two new service center locations in the United States by the end of the first quarter of 2009. The company said that it also had recently doubled its stake in Chinese venture VSC-Ryerson China Limited from 40% to an 80% controlling interest.
"We are in excellent position right now, having substantially restructured our organization, improved operations across the board and assembled a top-flight management team," said Stephen Makarewicz, CEO of Ryerson Inc. "Ryerson is very well capitalized, with a strong balance sheet and ample liquidity to pursue new initiatives. While the industry continues wrestling with economic uncertainties, we intend to use this position of strength to our advantage and to the benefit of our customers."
Located in Clearfield, Utah, the first new facility will serve the Salt Lake City metropolitan area offering a full range of aluminum, stainless and carbon products as well as burning and sawing services. The second new site is located in McAllen, Texas, and will serve the area from Del Rio to Brownsville on both sides of the Texas border.
Ryerson and its affiliates also increased ownership in VSC-Ryerson China Limited from a 40 percent stake held since the joint venture was formed in 2006 to an 80 percent controlling interest moving forward. VSC-Ryerson generated revenues in excess of $160 million in 2008.
"With our substantial footprint in China, Ryerson can accelerate its global growth strategy and continue to effectively serve the Chinese market, as well as our international and U.S. customers," said Frank Munoz, President and CEO of VSC Ryerson China Limited.
The increased Chinese investment comes one year earlier than originally envisioned. The VSC-Ryerson partnership agreements formed in 2006 provided Ryerson the option to become majority owner in late 2009. At the end of 2008 the partners mutually agreed to allow Ryerson to immediately acquire majority control and moved the option date up one year.
Ryerson also announced the appointment of Matthias Heilmann as Chief Operating Officer with responsibility for managing U.S and Canadian service center operations.
"Matthias is a welcome addition to Ryerson and his appointment completes the executive management team," said Makarewicz. "Matthias has worked with Ryerson since the beginning of our relationship with Platinum and has acquired an invaluable understanding of the industry and our business which will enable us to continue to successfully execute our growth strategy."
Matthias previously served as Vice President for Platinum Equity, the buyout firm that acquired Ryerson in October 2007. Since the acquisition, Heilmann and Platinum have worked with Ryerson's management team to execute a series of restructuring initiatives. At Platinum, Heilmann managed the transitioning of acquired companies into the Platinum portfolio as well as the ongoing portfolio company operations.
Ryerson Inc. is a leading distributor and processor of metals in North America. The company services customers through a network of service centers across the United States, Canada, China and India.
Platinum Equity is a global M&A&O(R) firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.
