Pittsburgh, Pennsylvania-based TMS International Corp. the parent company of Tube City IMS Corporation, a leading provider of outsourced industrial services to steel mills globally, announced Monday that it has secured new mill services contracts totaling more than $266 million in revenue over the life of the contracts at expected production levels and commercial sales, with aggregate growth capital investments of approximately $52 million.
The terms of the contracts, and a new joint-venture, vary and are for a variety of outsourced services at steel mills in Poland, Belgium, Malaysia and the United States.
The first contract represents one of the largest single contract wins in the history of the company and will mark the company's first mill services operation at a steel mill in Poland. The long-term contract includes a comprehensive suite of services being outsourced for the first time by the mill, including transportation, processing and sales of slag, as well as scrap handling, receiving, inventory control, loading and delivery to charge buckets. Services under the contract are scheduled to be phased-in beginning March 2013 with the processing and metal recovery from an existing slag bank, and full implementation of all services scheduled for Q2 2014.
The company has also contracted to provide additional services at steel mills in Belgium and the United States, expanding the company's presence in both countries with existing customers. The company also announced that it has purchased a non-controlling interest in a joint venture that will provide mill services to one of Malaysia's largest steelmakers. These services under a contract with the steelmaker include metal recovery, slag processing and slag sales.
These new contract wins follow the 17 new contract wins announced in 2012 representing approximately $308 million of cumulative revenue over the terms of the contracts at expected production levels, with aggregate growth capital investments of approximately $37 million.