PITTSBURGH, Nov. 29, 2011 /PRNewswire/ -- TMS International Corp.(NYSE: TMS), the parent company of Tube City IMS Corporation, a leading provider of outsourced industrial services to steel mills globally, today announced that it has secured three new mill services contracts totaling more than $290 million in revenue over the life of the contracts at expected production levels.
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The terms of the contracts vary between seven and nine years and are for a variety of outsourced services at steel mills in Genk, Belgium, Vanderbijlpark, South Africa, and Saldanha, South Africa. These contract wins further expand TMS International's relationship with a leading global steel producer and continues the company's expansion in faster growing international markets.
In Genk, Belgium, the company has contracted to provide services including stainless slag removal, transportation, processing and metal recovery. This contract expands the company's presence in Belgium with an existing customer and represents its first contract win at a location it previously has not served.
Additionally, in South Africa, TMS International has won contracts at two locations it previously has not served and is contracted to commence services through its joint venture entity Tube City IMS South Africa (Proprietary) Limited. These two contract wins are with a leading global steel producer and mark the company's first mill services operations in the fast-growing South African region. Services under the contract in Vanderbijlpark include slag removal, transportation and handling, metal recovery, and scrap and slag processing. In Saldanha, services include iron ladle transportation, scrap and slag handling and transportation, metal recovery, and scrap and slag processing.
Services under all three contracts are scheduled to begin January 1, 2012, and are expected to reach projected capacities by June 2012.
"South Africa is a market that holds significant potential for the steel industry. These new contract wins represent a significant first foothold in the South African region and we look forward to continuing to support our customers with our world-class service globally," said Raymond Kalouche, Chief Operating Officer, and President and COO, Mill Services Group, TMS International Corp. "It is our customer focus, attention to details and, most importantly, our best-in-class safety performance which we believe differentiate us from our competitors. These new contracts complement the company's global growth strategy. We are pleased to be able to expand our service offering to this important customer in South Africa and Belgium."
Joseph Curtin, Chairman, President and CEO of TMS International, added, "We are delighted to enter South Africa. Securing these contracts provides the opportunity for the company to continue to demonstrate its experience, leadership and commitment to the customer in a new market, and to drive future growth of our business in this important region. We will build on these successes by continuing to expand around the globe as we create value for our customers and shareholders."
Year-to-date, TMS International has won a total of nine new contracts to provide mill services, representing more than $433 million of cumulative total revenue over the life of the contracts at expected production levels.
About TMS International Corp.
TMS International Corp., through its subsidiaries, including Tube City IMS Corporation, is the largest provider of outsourced industrial services to steel mills in North America as measured by revenue and has a substantial and growing international presence. The company provides services at 79 customer sites in 10 countries and operates a global raw materials procurement network with 26 offices in 11 countries spanning five continents.
Certain information in this news release contains forward-looking statements with respect to the company's financial condition, results of operations or business or its expectations or beliefs concerning future events. Such forward-looking statements include the discussions of the company's business strategies, estimates of future global steel production and other market metrics and the company's expectations concerning future operations, margins, profitability, liquidity and capital resources. Although the company believes that such forward-looking statements are reasonable, it cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements involve risks, uncertainties, estimates and assumptions that may cause the company's actual results, performance or achievements to be materially different. Additional information relating to factors that may cause actual results to differ from the company's forward-looking statements can be found in the company's Registration Statement on Form S-1. The company undertakes no obligation to update or revise forward-looking statements after the day of the release as a result of new information, future events or developments except as required by law.
SOURCE TMS International Corp.