Service Centers

ThyssenKrupp to Build Service Center at SDI Sinton, Eyes M&A Too

Written by Michael Cowden

ThyssenKrupp Materials Services plans to build a greenfield service center on the campus of Steel Dynamics Inc.’s new steel mill in Sinton, Texas.

The new location is part of a nearly $82 million (€70 million) North American expansion plan launched by the service center and distribution wing of the Essen, Germany-based steel company.


Approximately $33 million (€28 million) of that amount will be used to build the new service center at SDI Sinton, which will sport slitting and cut-to-length equipment, the company said in a press release.

ThyssenKrupp materials services will also expand at its existing locations in Woodstock, Ala.; Memphis, Tenn.; and Kenosha, Wis.

The company is also eyeing possible mergers and acquisitions.

“Demand for our products, but especially for our services, is high and has grown strongly in recent years,” said Martin Stillger, chairman of the board of ThyssenKrupp Materials Services.

“We now want to use our affinity for services in particular to improve our market position even further – if possible also with further acquisitions,” he said. “We are already No. 3 in America. That is not enough for us.”

The planned growth in the region comes because North America alone accounts for approximately 25% of Material Services’ overall sales.

ThyssenKrupp says it has 94 service centers in North America with more than 4,000 employees serving more than 55,000 customers. Among them are Chrysler (now Stellantis) assembly plants to which the company supplies about 70,000 parts a day on a just-in-time basis. The company said it would use such expertise to help SDI Sinton manage supply chains between the mill and automotive OEMs in particular.

The hot end of the Sinton mill is expected to come online before the end of the year. And SDI has said it sees automotive as a major growth market given low inventories in that sector’s supply chain stemming from a shortage of chips and other parts. The result: forecasts of build rates of 15 million to 17 million units in 2022-23.

The expansion in Alabama is also aimed at boosting ThyssenKrupp’s position as a preferred supplier to the automotive industry as well as to the appliance and HVAC sectors. The growth in Wisconsin is aimed at the kitchen equipment sectors as well as the truck and truck equipment markets. And the expansion in Memphis will include a logistic hub for ThyssenKrupp’s elevators division allowing for “seamless” tracking of goods all the way to the end of the supply chain, the company said.

ThyssenKrupp has also expanded its digital offerings to include not only steel and metal products but also rentals of office space – from entire offices down to individual desks.

“We want to shape the materials supply chains of tomorrow, and to do this we are also taking what at first glance appear to be unusual paths,” said Ilse Henne, chief transformation officer of ThyssenKrupp Materials Services.

By Michael Cowden,

Michael Cowden

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