Sumitomo Corporation in the Americas - Global Solutions For Business - (Page 17)

Infrastructure | Business Focus Acquisition of Standard Steel Increases Forged Rail Products Supply in North America Our Steel and Non-ferrous Metal Business Group has been integral in supplying rail, wheels, axles and tie plates for Class 1 railroad companies and other customers in North America since the 1980s. This established position as a trusted supplier in the railroad industry, helped lay the groundwork for an acquisition that has helped to strengthen one of the oldest manufacturers of forged wheels and axles for railcars in North America. A Legacy Lives On In 2011, Sumitomo Corporation together with Nippon Steel & Sumitomo Metal Corporation (NSSMC) acquired Standard Steel, one of the longest continuously operating forging operations in the United States. Based in Pennsylvania, Standard Steel is a leading manufacturer of forged steel wheels and axles for freight railcars, locomotives and passenger railcars. It is the only producer of forged steel wheels for railcars and locomotives in North America. Established in 1795, Standard Steel has 680 employees in its Burnham, PA operation and annual sales of $250 million, 99% of which comes from North American customers. As a leading manufacturer for all brands of freight railcar, locomotive and passenger railcar, Standard Steel’s customers include major Class 1 railroads in North America, freight railcar builders, railcar and locomotive maintenance shops, nationwide passenger rail service, locomotive builders and regional transit authorities. The company supplies 25% of the wheel demand and 40% of the axle demand for the entire North American rail industry. Strategic Investment The investment in Standard Steel broadened our product line offering with the addition of more high grade wheels and axles that we can market to rail authorities in North America. For Standard Steel, our investment injected new funds into their operations, allowing them to make capital improvements and enhance their manufacturing operations. It also has improved their operations by integrating NSSMC’s technology into their already well-developed manufacturing process. These changes are helping to decrease costs, shift manufacturing to more value-added products, and propose new products to the industry. Improving Competitiveness All of these factors have made Standard Steel more competitive in a legacy business, and elevated our position as a railroad products supplier to North American customers. As the U.S. economy continues to strengthen, the need for more freight transport and passenger rail in North America will continue to increase and Standard Steel together with SC in the Americas is on a strong footing to take advantage of these new business opportunities in infrastructure development. 17 http://www.standardsteel.com/ http://www.standardsteel.com/ http://www.standardsteel.com/

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Sumitomo Corporation in the Americas - Global Solutions For Business