TMS International Corp. Announces New Contract Wins Totaling More Than $91 Million
PITTSBURGH, July 16, 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 new mill services contracts totaling more than $91 million in revenue over the lives of the contracts at expected production levels, with aggregate growth capital investments of approximately $13 million.
The terms of the contracts vary and include both add-on outsourced mill services with existing customers at steel mills in the UAE, France, Mexico, South Africa, and the United States, as well as various outsourced mill services for a new U.S. customer.In the United States, TMS International won a mill services contract with a new customer in Tennessee and expanded its relationship with an existing customer in Alabama by cross selling a new service. Services under the new contract in Tennessee, which begin this quarter, include scrap and slag handling, slag sales and metal recovery. The new cross sold contract in Alabama, which is expected to begin in the first quarter of 2013, expands the company's slag processing metal recovery services currently in place, adding scrap receiving, inspection, handling and charge bucket loading. In Monterrey and Monclova, Mexico, TMS International augmented its services with existing customers by cross selling additional internal transportation and logistics services for semi finished and finished products. Similarly, in South Africa, the company cross sold the processing and metal reclamation of an existing large backlog of unprocessed slag. This additional service will help the customer to reclaim metal units and to generate a clean "aggregate" product for various industrial applications. In France and the UAE, the company expanded its services to increase the volume of handling and sorting of finished plate products and melt shop services. "We are delighted to add a significant new customer to our client base and are very pleased to expand our business with existing customers. These contract wins demonstrate TMS International's ongoing commitment to creating value for our customers in all business environments and providing excellent service," said Raymond Kalouche, Chief Operating Officer, and President and COO, Mill Services Group. "As one of the leaders in our industry, our team continues to focus on safety, the environment and developing cost-effective solutions for our customers globally." Year-to-date, TMS International has won a total of four new major contracts to provide mill services. These new contracts, together with various 2012 expansions of services under existing agreements, represent more than $270 million of cumulative total revenue over the life of the contracts at expected production levels, with aggregate growth capital investments of approximately $33 million.
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