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$3M steel cleaning facility built in Michigan. Publication: Toledo Business Journal
3/1/08

The American Roll Coating and Cleaning Company, LLC. (ARCCO) has built a new steel cleaning facility in Erie, Michigan. The company purchased an existing 32,000 square foot facility, which became operational in September and employs 10 full-time personnel.

Minimal plant renovationwas required and approximately $1 million of equipment was installed inside the plant. According to ARCCO, all financing is in place and it will close on the building once environmental phase I is completed.

According to ARCCO, the flew facility will utilize a steel cleaning process that incorporates a high-pressure wash technique with brushes. This service will be marketed to steel service centers,distributors, and insurance companies that have steel coils requiring surface cleaning. Additionally, the line will have the capability of applying dry film lubrication or other coatings designed to enhance customers' manufacturing processes.

ARCCO will offer value-added processes for new or distressed coil steel that include a four-stage wash unit (prewash, scrubber with Scotch Brite rolls and brushes, hot water rinse, and a drying unit); a roll coater that applies a variety of products, including dry film lube; edge trimming capabilities; oil / rust removal; an electrostatic oiler; and a shape correction leveler.

"Most of what will [be installed] will be wean equipment," Leonard stated. "The leveler will be a wean, and the wash line will be an industrial company out of Indiana. [ARCCO] will go through and refurbish it completely."

The new facility will have a projected yearly maximum capacity of 200,000 tons. It will handle cold rolled, hot rolled P&O, galvanized, galvannealed, aluminized, aluminum, and stainless steel with thicknesses from 0.028 inches to 0.140 inches and maximum widths of 72 inches. It can process 60,000 lb. coils with 20/24 ID/OD entry and exit capabilities.

Mike Leonard, who originally built the new ARCCO facility in 1981, will be president and general manager. ARCCO is a partnership between majority partners John Bates of Heidtman Steel Products Inc. and Bill Feniger of Universal Metals LLC.

Headquartered in Toledo, Heidtman Steel markets flat-rolled carbon steel products sold through its 15 processing facilities. Heidtman processes nearly five million tons of steel annually through its wholly owned facilities and joint ventures. Its products are distributed to a variety of industries including automotive, heavy truck, construction, pipe and tube, metal building, appliance, and furniture.

Last year, Heidtman finalized plans to construct a new continuous annealing (CAL) facility. Heidtman is looking at several Midwest locations for this project that will cost approximately $225 million including downstream processing equipment. The company has estimated the project will create 200 jobs.

Universal Metals was established in Toledo in 2001. The 70,000 square foot warehouse / distribution center offers slitting, leveling, shearing, and pickling services. Feniger, president of Universal Metals, has been involved in the steel service center industry since 1969. With family in the steel business since the mid-1950s, he has worked in operations that performed slitting, leveling, shearing, burning, saw cutting of coils, and other services. Feniger has been involved in pickling and oiling operations since 1978 and manufacturing operations since 1980.