Esmark, Loeffel Steel Group form joint venture
21 October 2015
Loeffel Steel Group, a suburban Chicago-based company with a processing facility in Riverdale, and Esmark announced a joint venture.
Esmark, a Pittsburgh-based company that's bought steel service centers in East Chicago and Chicago Heights over the last decade, said the newly formed enterprise will better serve various customer bases across the Midwest. The joint venture, which will not include Loeffel's service center in Riverdale, will offer services such as slitting, shearing and edging to original equipment manufacturers in building construction, roof deck and siding, residential home products, consumer products and shelving.
The joint venture will produce hot-rolled, cold-rollled, pickled, pre-painted, hot-dipped galvanized, electro-galvanized and galvannealed products under the Loeffel Steel Group brand. Loeffel Steel Group founder and Chief Executive Officer Maurice Loeffel will serve as CEO and co-chairman.
"We're extremely pleased to be joining forces with Maurice and his Loeffel Steel Group team," said James Bouchard, CEO and Chairman of Esmark.
"We have known and conducted business with Maurice and his family for many years, and we share the same business philosophies and commitments to our employees and the communities in which we operate. That way of doing business will continue under this exciting joint venture."
Bouchard, who's also co-chairman of the joint venture, said the deal will result in more efficiency and a broader portfolio of products.
Loeffel Steel Group had been looking for a joint venture and concluded Esmark was the best fit. Terms of the deal were not disclosed.
"Esmark's experience, reputation, world-class management team and market power in the steel services sector convinced me that we could accomplish great things together,” Loeffel said.
"Needless to say we're excited about the future and look forward to continuing to service our combined networks of customers and collaboration with our suppliers."
Esmark has previously launched several joint ventures, including with South Korea's TCC Steel, Australia's Canning Petroleum Ltd. and American's Eagle Creek Resources.
"We've clearly demonstrated over the years that we can identify strategic opportunities in the steel and energy sectors and forge lasting and profitable business relationships with our joint venture partners," Bouchard said.
"Both Maurice and I believe we can build on our respective strengths and position the joint venture to be equally successful moving forward."