Republic to Invest $12.5 Million at Canton
09/07/2007 - Republic will invest $12.5 million at its Canton meltshop to install new, state-of-the-art equipment for producing bottom-poured ingots for the open-die forging, seamless rolled ring, and electrode markets.
Republic Engineered Products, Inc. announced it will invest $12.5 million at its Canton operation to install new, state-of-the-art equipment for producing bottom-poured ingots.
Republic had previously been a major supplier of bottom-poured ingots until 2002. With the upgrade, the company expects to produce up to 200,000 tons of bottom-poured ingots annually for both domestic and export customers in the open die forging, seamless rolled ring and electrode markets.
"This project demonstrates our commitment to pursuing an aggressive growth strategy and maximizing the utilization of our steelmaking capacity," said Jaime Vigil, Republic's President and CEO. "Our thorough examination of this market showed a definite need for another source for high quality ingots. Our intention is to couple our extensive steelmaking experience with our ingot-pouring technical expertise to become a significant producer in this market once again."
Initially, the facility will produce 24-, 29-, and 37-inch round ingots, with future plans to expand to 20- through 72-inch rounds weighing up to 70,000 pounds. Steel for the new bottom-poured ingot operation will be produced in 220-ton heats in the Canton facility's upgraded electric arc furnace meltshop and refined in the facility’s new ladle-refining and vacuum-degassing equipment, which were all put into service in 2006.
This latest investment marks nearly $115 million in capital expenditures Republic has made since July 2005 when the company was acquired by Industrias CH, SA de CV (ICH), a rapidly growing steel producer and processor based in Mexico City. Republic is a subsidiary of Grupo Simec, Guadalajara, Mexico, of which ICH is the majority owner.
"Republic's goal is to maintain our position as the undisputed leader in our industry," Vigil said. "We intend to continue to make the investments necessary to remain the supplier of choice in a very competitive marketplace."
The new bottom-pour equipment is expected to be operational in the third quarter of 2008.
Republic Engineered Products, Inc., is a leading North American supplier of special bar quality (SBQ) steel. With headquarters in Fairlawn, Ohio, the company operates steelmaking centers in Canton and Lorain, Ohio, and value-added rolling and finishing facilities in Canton, Lorain and Massillon, Ohio; Lackawanna, N.Y.; Gary, Ind.; and Hamilton, Ont. Republic employs approximately 2500 people.
