The Herald, Sharon, PA Published Wednesday, April 2, 2003

SCMF buying Wheatland Tube lines

By Michael Roknick
Herald Business Editor

Sharon Custom Metal Forming Inc. said Tuesday it bought the assets of Wheatland Tube Co.'s roll forming division in Warren, Ohio, and plans to relocate that and SCMF's Hermitage operations to a new plant in Farrell.

Terms of the deal were not disclosed.

The Warren operations were part of Sawhill Tubular Division, which Wheatland Tube bought a year ago from AK Steel Corp. Pipe production at the Warren plant will continue under Wheatland Tube's ownership.

Equipment from the deal, which includes 15 roll forming lines and related machinery, will be moved into a new 85,000-square-foot manufacturing building in the Legacy Commons industrial park along Broadway in Farrell. End uses for the items produced by the equipment are conveyors, slats for industrial doors and trailer jacks.

Employing 15, SCMF expects that with job transfers and newly created jobs a total of 35 will be working in the new plant.

"SCMF has developed a strong market position in the production of semi-complex and complex roll formed shapes that require in-line punching and notching,'' said Robert E. Wilson, SCMF president. "Wheatland's market strength has historically been the production of heavy gauge roll formed parts and complex, light gauge lock seamed sections. The combination of these niche markets will give SCMF the diversity to emerge as a market leader.''

Also, the deal will dramatically increase SCMF's production capacity, he said.

Currently located on Llodio Road in Hermitage, the company will gradually move equipment from that plant and the Warren mill to Farrell, where production is set to begin later this month. The entire move is expected to be completed by July.

The plant is located in the Keystone Opportunity Zone where businesses don't have to pay certain local and state taxes for up to 10 years.

"The tax benefit of the KOZ made new construction an affordable option,'' Wilson said. "More importantly, the new construction allowed us to design the building specifically for our operations. This will create a leaner and more efficient manufacturing environment.''

In addition, the building was designed to allow for an additional 30,000 square feet to be added in the future.

Wheatland Tube sold the Warren line because it wasn't part of its core marketing strategy, said Bill Kerins, the company's vice president.

"This will let us concentrate on our pipe and tube business which we know best,'' Kerins said.

Selling the Warren lines opens up 100,000 square feet of desperately needed warehousing space for the company, he said.

"This allows us to use the building for inside storage,'' Kerins said. "It's critical for our long-term plan.''

Last month, Wheatland Tube said it was closing its mechanical tube plant in Wheatland and selling the equipment to an undisclosed buyer. The plant also was a part of the Sawhill deal, but Kerins said the company has no future plans to sell any of its existing operations.

SCMF is a manufacturer of custom roll formed shapes and metal fabrications, including robotic welding, stampings and assemblies. The company sells metal components to a diverse group of industries, such as material handling, office furniture and partitions, recreational equipment, commercial and industrial product manufacturers, industrial machinery, store fixtures and displays, electrical distribution, and truck and trailer.



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