Bing Steel, Rouge Industries and Shiloh Industries Announce Joint Venture
24 November 1997
Bing Steel, Rouge Industries and Shiloh Industries Announce Bing Blanking, L.L.C., Joint Venture
DETROIT, Nov. 24 -- Bing Steel Management Inc., Rouge
Industries, Inc. and Shiloh Industries, Inc.
jointly announced today a strategic partnership to produce and market first
operation steel blanks for the automotive industry.
The newly formed joint venture company, Bing Blanking, L.L.C., a
Michigan-based limited liability company, will be managed and operated by its
majority member, Bing Steel Management Inc. David Olson, a Bing Steel
Management executive, will hold the initial position as President of Bing
Blanking, L.L.C. Rouge Industries, Inc. and Shiloh Industries, Inc. will hold
minority positions in the joint venture company but will play key roles in
supporting Bing Blanking through technical assistance and the supply of flat
rolled sheet steel. Bing Blanking will submit its application for
certification as a Minority Business Enterprise to the Michigan Minority
Business Development Council in the near future. The location of Bing
Blanking has not yet been finalized. It is anticipated that 20 new jobs will
be created initially.
Dave Bing, Chairman of the Board of Bing Steel Management Inc., stated
"The formation of this company broadens our steel processing capabilities. We
will now be able to supply more value-added products to our customers, namely
General Motors, Ford and Chrysler. We have aligned ourselves with formidable
partners in this joint venture and we are confident that the strength of the
partnership will insure the new company's success."
According to Carl L. Valdiserri, Chairman and Chief Executive Officer of
Rouge Industries, Inc., "The Bing Blanking partnership fits very nicely with
our strategic plan to develop alliances with leaders in the steel industry
where value can be added to our core steel products. We especially value the
opportunity to join forces with a quality organization like Bing Steel and to
grow our solid relationship with Shiloh Industries to better serve our
customers."
According to Robert Grissinger, President and Chief Executive Officer of
Shiloh Industries, Inc., "Shiloh has, for a number of months, pursued
opportunities for a minority business participation. Dave Bing, Chairman of
Bing Steel Management Inc., is an excellent partner with a keen understanding
of the automotive market. We look forward to our future relationships with
Dave and his team." Mr. Grissinger continued, "The Rouge participation makes
a great deal of sense and our relationships with Rouge have been and continue
to be excellent."
Bing Steel Management Inc. is a Detroit-based steel processor and supplier
to the automotive industry.
Rouge Industries, Inc. is the parent holding company of Rouge Steel
Company, a fully integrated steel producer whose single site manufacturing
facilities and corporate offices are located in Dearborn, Michigan. It
principally serves the automotive, converter and service center markets.
Shiloh Industries, Inc., headquartered in Mansfield, Ohio, is a premier
supplier of high quality steel blanks, stampings, and processed steel
primarily serving automotive, appliance and other industrial customers. The
company operates nine facilities in Ohio and Michigan and employs
approximately 1,450 associates.
Safe Harbor
The above statements contained in this press release include
forward-looking statements that involve a number of risks and uncertainties.
Among the factors that could cause actual results to differ materially are the
following: a downturn in the automotive industry and the general economy;
competitive factors such as increases in the prices or limitations on the
availability of steel; and other risks and uncertainties that may be
identified from time to time when Rouge Industries, Inc. and Shiloh
Industries, Inc. report to the Securities and Exchange Commission.
SOURCE Rouge Industries, Inc.