Steel Mills

Majestic Buys Merit to Expand West Coast Presence
Written by Michael Cowden
August 18, 2021
Majestic Steel USA has acquired West Coast service center Merit Steel USA in a push to expand its presence in the region.
The Cleveland-based service center said persistent supply chain constraints bolstered the case for growing its footprint west of the Rocky Mountains.
Terms of the deal were not disclosed.
“Merit has a strong reputation as a West Coast service center. This acquisition enhances our position in the Western region of the country and is a natural extension to our current business model,” Majestic Steel President and CEO Todd Leebow said in a statement.
Merit has locations in Pittsburg, Calif.; Fontana, Calif.; and Longview, Wash. – in other words, close to major West Coast flat-rolled steel suppliers.
USS-UPI LLC, the West Coast subsidiary of U.S. Steel, is based in Pittsburg. Slab converter California Steel Industries (CSI) is based in Fontana. And Longview is approximately 10 miles from the Kalama, Wash., operations of Steelscape – a subsidiary of Australian steelmaker BlueScope that makes metal coated and painted steel coils.
M&A expert Dan Sullivan – founder of Chicago-based Montrose Advisors – noted during an SMU Community Chat last month that private equity was more likely to acquire downstream manufacturing operations whereas service centers were more likely to acquire other service centers.
By Michael Cowden, Michael@SteelMarketUpdate.com

Michael Cowden
Read more from Michael CowdenLatest in Steel Mills

CRU: Interest in AHMSA is growing
Representatives of at least six companies interested in acquiring AHMSA have reportedly begun to carry out physical inspections of the insolvent company’s assets.

USW urges Algoma to diversify product line as $500M lifeline meets wider Q3 losses
The United Steelworkers (USW) is pushing for transparency after Algoma Steel announced earlier this week that it has received CA$500 million in financing from the Canadian government.

Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.

Algoma speeds up EAF transition, shifts focus to supplying mostly plate to Canadian market
Upended by the Trump regime's tornado of tariffs, Algoma Steel is pivoting on its cross-border business model, shifting its focus to supplying the Canadian market.

White House confirms use of ‘golden share’ to intervene at Granite City: Report
The White House confirmed it stepped in to block the halting of steel processing at U.S. Steel’s Granite City Works in Illinois, according to media reports.