Posted May 13, 2024

thyssenkrupp Materials Services opens new Texas service center 

thyssenkrupp Materials Services, a global mill-independent materials distribution and service provider, celebrated the opening of its new, $32-million steel service center in Sinton, Texas, on May 7.

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 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."

The new facility is located on the premises of Steel Dynamics, Inc., one of the largest steel producers in the U.S.

"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.

Their 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 and has 15 dedicated employees.