Esmark Inc. and Loeffel Steel Group, a steel processing and distribution service center in suburban Chicago, have announced the formation of a new joint venture. The partnership is expected to increase the commercial and operating efficiencies of the two companies and offer a broader portfolio of products and services. The new venture will operate under the Loeffel Steel Group brand.
Maurice Loeffel, founder and CEO of Loeffel Steel Group, will serve as Co-Chairman and CEO of the new joint venture.
James P. Bouchard, Chairman and CEO of Esmark, Inc. and Co-Chairman of the new joint venture commented, “We’re extremely pleased to be joining forces with Maurice and his Loeffel Steel Group team. We have known and conducted business with Maurice and his family for many years and we share the same business philosophies and commitments to our employees and the communities in which we operate. That way of doing business will continue under this exciting joint venture.”
Loeffel is a pre-painted and coated products specialist, with its main products in coil and sheet format for a range of OEM customers including building construction, roof deck and siding, storage/shelving and residential home products.
“The company does quite a bit of CTL products and will complement/build on Esmark’s focus on flat-rolled processing. This JV will be centered mostly on brokering and not processing steel, per se,” said Esmark’s Director of Marketing & Communications, Bill Keegan.
Esmark has a successful history of joint ventures including its 50-50 joint venture with South Korea’s TCC Steel and Esmark’s Ohio Coatings Company; Esmark’s joint venture with Australia’s Canning Petroleum to develop oil & gas potential in the country’s Canning Basin; and the company’s oil & gas exploration and production joint venture with U.S.-based Eagle Creek Oil & Gas Company.
Loeffel said that during the due diligence process he held talks with a number of potential joint venture partners and concluded that Esmark was the ideal partner for the joint venture. “Esmark’s experience, reputation, world-class management team and market power in the steel services sector convinced me that we could accomplish great things together,” he noted. “Needless to say we’re excited about the future and look forward to continuing to service our combined networks of customers and collaboration with our suppliers.”
(Source: Esmark Inc.)
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