Steelscape to build new plant, close an old one

Steelscape to build new plant, close an old one

Steel coil manufacturer Steelscape Inc. has announced that it will build a new facility at the Port of Shreveport-Bossier (Louisiana). According to the company, the plant is expected to cost about $200 million and will be complete by May 2006. Steelscapes hopes it will have a $250 million economic impact on the area while creating more than 2000 new jobs. In addition, the facility will increase cargo tonnage at the port by more than one million tons annually. The facility will employ about 240 people and have an annual payroll of approximately $14 million. The new plant is part of Steelscape’s parent company, Monterey, Mexico-based Grupo Imsa’s pledge to fortify its place in the US steel market and serve it more effectively. The announcement comes in conjunction with a filing Imsa made today on the Mexican stock exchange. Imsa’s overall plan will consist of building build new mills and upgrading its current West Coast facilities to meet growing demand. The company further intends to close its Richmond, California plant and move its operations to the Shreveport plant. The Richmond plant reportedly produces about 255’000 mt of metal-coated steel and 155’000 mt of painted steel per year. It is estimated the move will cost the company $70 million but it feels will reap the benefits because the Shreveport location will make operations more efficient and less expensive. Steelscape produces cold-rolled, metallic-coated and custom-painted steel coils for the construction and OEM markets in the United States and Canada.