Keystone Consolidated Industries to Expand and Upgrade
Keystone Consolidated Industries, Inc. (KCI), through its subsidiary Engineered Wire Products (EWP), has announced plans to establish a welded wire reinforcement mesh (WWR) manufacturing operation at its facility in Sherman, Texas, as the next step of its expansion strategy. EWP expects to utilize recently acquired WWR and support equipment at the Sherman facility to serve customers in Texas and surrounding states, as well as providing the ability to initiate service into areas where future facilities are expected to be built.
The Sherman, Texas expansion follows EWP’s 2014 launch of its growth strategy via its acquisitions of WWR facilities in Las Cruces, New Mexico and Warren, Ohio and subsequent expansion of those facilities in 2015. These initial steps collectively double EWP’s WWR productive capacity of its original WWR facility in Upper Sandusky, Ohio, and greatly expands EWP’s geographical footprint thereby increasing EWP’s ability to compete in established and new growing markets.
The primary steel rod feedstock for the current and future WWR facilities will be provided from KCI’s Keystone Steel & Wire (KSW) mill in Peoria, Illinois, with the flexibility to utilize third party sources of steel rod as necessary to help support future growth and expansion of concrete reinforcement and similar value added products beyond KSW’s current steel rod capacity. The integration with KSW’s steel mill also provides EWP an assured supply of steel rod that meets the requirements for customer’s projects requiring “made in the USA” materials, while shifting and increasing its productive rod capacity to products utilized in concrete reinforcement and similar value added markets.
Additionally, KSW has recently completed significant upgrades to its arc shop and rod mill to expand its steel production capabilities to include high carbon and cold headed quality billet and rod. Consistent with its growth and expansion strategy, this enhanced capability further expands KCI’s opportunities to achieve additional growth in value added products, including prestressed concrete strand and other concrete reinforcement products, which together with WWR have many similar customers.
Chris Armstrong, KCI’s Chief Executive Officer, commented; “The ability for EWP to internally source U.S. made steel from our mini-mill in Peoria, Illinois is a great competitive advantage for EWP, KSW and ultimately our customers. This competitive advantage is a major tenet of the expansion strategy we commenced in 2014, a strategy which I look forward to continuing through additional organic and acquisitive strides with the full support of our shareholder in the months and years to come.”
SOURCE: Keystone Consolidated Industries, Inc.
CONTACT: Janet Keckeisen, Director Business Development and Investor Relations, (972) 458-0028