Visions - Spring/Summer 2016 - 3

STEEL & NON-FERROUS METAL GROUP SCOA and Sumitomo Corporation Bring New Railcar Axle Machining Business to West Coast W ith a forecasted rise in population in North America, the railway industry is expected to grow as a key player in transportation, with the maintenance sector supporting the railway industry is also projected to see solid market expansion. In addition, heightened awareness of railway transport safety has boosted demand for highly reliable parts, materials and services. Specifically, industry demand is forecasted to gain ground in the western part of the United States. To complement their current railway business, SCOA and Sumitomo Corporation have recently expanded this business unit to include a new railcar axle machining business. Under the new name, GBSummit, LLC, a partnership with Greenbrier Rail Services (GRS), the new company will perform railcar axle machining to support the North American railcar industry. The joint-venture will move this machining business to the west coast of the United States to meet the aforementioned demand for railway products. Investing in the North American market is a priority for Sumitomo Corporation. Entering into this maintenance business only further enhances Sumitomo's value-added services to their clients in their related railway segments. Finding the right partner is critical to achieve success in a business venture like this one. GRS currently boasts a large market share of the railcar wheel/axle maintenance business in North America, and is a leading supplier of transportation equipment and services to the railroad industry. SCOA and Sumitomo Corporation regard railway related business as one of its core businesses and have actively engaged in the sale of and investment in railcar equipment, track-related components and railway systems. Together, they have supplied railcar wheels in North America and in 2011 secured a local sales network by acquiring Standard Steel Holdings, Inc., a railcar wheel/axle manufacturer with Nippon Steel & Sumitomo Metal Corporation. Now working with their long-time customer GRS, they plan to expand their territory and sales channels in the railcar wheel/ axle supply chain. Establishing a presence on the west coast shouldn't be difficult. GRS has plants in twelve locations across the U.S., one of which is in San Bernardino, CA, where GBSummit is establishing an axle machining plant adjacent to a GRS-owned maintenance plant. When it opens, this plant will be the preeminent location on the west coast for machining new axles and downsizing existing ones. For more information, contact Teddy Shiraishi at tatsuro.shiraishi@sumitomocorp.com SCOA Knows Rail * SCOA has been integral in supplying rail, wheels, axles and tie plate to the railway industry since the 1980s. * Supplies 30-40% of the wheel and axle demand in North America. * SCOA group company Arkansas Steel's current steel production output equals 300,000 net tons of tie plates and billets per year. S u m i t o m o C o r p o r a t i o n o f A m e r i c a s 3

Table of Contents for the Digital Edition of Visions - Spring/Summer 2016