Visions - Spring 2008 - (Page 7)

T H E B O D Y (Continued from page 4) The long history of automotive manufacturing wouldn’t be possible without one key element: steel. Aluminum and fiberglass have made their way into the world of automotive body elements, but a majority of cars on the road today contain steel as a foundation element of their body, as well as some original and replacement auto parts. SCOA’s automotive customers make up a majority of their rolled steel sales; a majority of SCOA’s total steel business involves steel purchased for processing plants that serve automotive-related manufacturing businesses. The overall amount of steel purchased and processed at the plants for automotive-related businesses resulted in multi-million dollar sales in 2007, with certain steel mills in North America acting as supplier for this key bit of SCOA’s business. Many of the automotive customers through SCOA’s SteelSummit Holdings are Japanese transplant Tier 1 automotive parts manufacturers. Also, American Tier 1 and Tier 2 automotive parts manufacturers or assembly manufacturers benefit from this specific supply chain. A wholly-owned subsidiary of SCOA and SC headquartered in Nashville, SteelSummit Holdings streamlined the operations of all its metal processing operations, while still allowing autonomous leadership from each locations’ management at Steel Summit Ohio and Steel Summit Tennessee. In less common cases, SCOA sells to the original equipment manufacturers directly, and in another related business-chain relationship, SteelSummit also facilitates the processing and sale of slit coils for a certain car manufacturing entity directly. The automotive industry is one of our core businesses for the Steel & Non-Ferrous Metal Group, and SteelSummit International also allows SCOA to achieve financial success within that business sector. In 2003, Sumitomo acquired the steel business of Nichimen North America as a steel trading company with import/export and domestic business. To bring this new business into the SCOA group of companies, the new subsidiary SteelSummit International, Inc. (SSI) was formed, and continued to work within Nichimen’s line of businesss. By concentrating those resources into a specific business, this forged strong relationships between customers and manufacturers. SSI’s 30 to 40 customers are located in the U.S., Canada and Mexico. SSI’s overall steel suppliers come from the U.S., Japan, Southeast Asia and other countries. Last year’s sales related to automotive business for SSI exceeded $100 million, helping to show that the crossover of our acquired steel business from Nichimen has proved extremely successful. Sumitomo Corporation of America 7

Table of Contents Feed for the Digital Edition of Visions - Spring 2008

Visions- Spring 2008 Revving the Engines of the Auto Industry- A Look at SCOA Automotive Related Businesses Helping Mitsubishi Regiona Jet Take Flight SCOA Returens to D.C. Real Estate with Purchase of K Street Building Contributing to Society- SOCA Foundation Gives to Broad Range of Causes in 2007

Visions - Spring 2008

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