TMS International Corp. Announces New Contract Wins Totaling More Than $179 Million
PITTSBURGH, March 1, 2012 /PRNewswire/ -- TMS International Corp. (NYSE: TMS), the parent company of Tube City IMS Corporation, a leading provider of outsourced industrial services to steel mills globally, today announced that it has secured two new mill services contracts totaling more than $179 million in revenue over the life of the contracts at expected production levels. Terms of the contracts vary between 10-15 years and are for a variety of outsourced services with new customers at steel mills in the United States and Mexico.
Both contracts are at greenfield sites and further expand the company's leading presence in the United States, where the company has on-site mill services operations in 57 of the United States' 115 steel producing mills, as well as the rapidly expanding Latin America region.
Services under the new contract in Alabama include slag pot transportation, metallic recovery, stainless slag processing, aggregate marketing, revert cutting, melt shop cleaning and other auxiliary services.Additionally, in Mexico, the company has contracted to commence a new agreement with a leading regional steel company. Services under the contract include slag pot transportation, metallic recovery, slag processing, melt shop cleaning, tundish cutting and other auxiliary services. This contract win with a new customer marks the company's sixth operation in Latin America, complementing its existing mill services operations in Mexico, Trinidad, and its procurement office in Monterrey, Mexico. Services for both contracts are expected to begin in the fourth quarter of 2012 and are anticipated to reach projected capacities in 12-18 months. "These new contracts reinforce the global scale of our business and highlight our continuing success in meeting the needs of growing markets. They also confirm the continued confidence that the leading steel companies around the globe have in our outstanding services, our skilled workforce and our exceptional performance," said Raymond Kalouche, Chief Operating Officer, and President and COO, Mill Services Group. "We are delighted and honored to serve both of these important customers. Our focus on safety and creating value for our customers has allowed us to aggressively implement our strategic global expansion effort and positioned us for continuing growth this year and beyond." About TMS International Corp. TMS International Corp., through its subsidiaries, including Tube City IMS Corporation, is the largest provider of outsourced industrial services to steel mills in North America as measured by revenue and has a substantial and growing international presence. The company provides mill services at 82 customer sites in 11 countries and operates 29 brokerage offices from which it buys and sells raw materials across five continents. Certain information in this news release contains forward-looking statements with respect to the company's financial condition, results of operations or business or its expectations or beliefs concerning future events. Such forward-looking statements include the discussions of the company's business strategies, estimates of future global steel production and other market metrics and the company's expectations concerning future operations, margins, profitability, liquidity and capital resources. Although the company believes that such forward-looking statements are reasonable, it cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements involve risks, uncertainties, estimates and assumptions that may cause the company's actual results, performance or achievements to be materially different. Additional information relating to factors that may cause actual results to differ from the company's forward-looking statements can be found in the company's Registration Statement on Form S-1. The company undertakes no obligation to update or revise forward-looking statements after the day of the release as a result of new information, future events or developments except as required by law.
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