December 02, 2008

Cargill and Robinson Steel to form steel JV in Illinois

A leading global trader, processor and distributor of iron & steel Cargill has agreed to enter into a JV with Robinson Steel to produce and distribute RPS® Sheet and Plate under license. It us expected to be closed within the next 45 days. Terms are not disclosed.

Cargill and Robinson JV will have an initial capacity of 200,000 tons per year of cold reduced cut to length hot rolled steel from a jointly owned 100,000 square foot production facility located in Granite City Illinois. Cargill will source the hot rolled band and provide all of the sales and marketing to support the venture. Robinson will manage and operate production of the facilities.

Mr Mike Taylor president of Cargill Steel Service Centers said that “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. He added that 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.”

Mr Paul Labriola president & CEO of Robinson Steel said that “We are proud that Cargill selected RPS® to complete its product line 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.”

As a licensed distributor, Cargill will have access to production from Robinson’s other Granite City processing line and the East Chicago, Indiana facility.

Robinson Steel is headquartered in East Chicago. In addition to cold reduction lines it operates seven RPS® Laser Production and Distribution Centers providing precision cut parts to OEM’s and fabricators.