Status & Outlook of NA Billet Industry: Robert Convery, Matalco Interview
Tuesday, May 9, 2017
Posted by: Nancy Molenda
Robert (Bob) Convery of of AEC member company Matalco Inc. in Brampton, Ontario, Canada, was recently interviewed for an article on the North America billet industry with Light Metal Age.
What is the current status of Matalco’s aluminum billet business? What are the main geographic markets that the company serves?
Matalco, owned by the Giampaolo Group, supplies billet to the extrusion and forging industries, the latter representing approximately 15% of sales volume and where the aluminum billets we supply are forged into truck and trailer wheels. The company has three plants — Brampton, ON, Canada; Canton, OH; and Lordstown, OH — and supplies high-quality billet to the extrusion and forging (truck and trailer wheels) industries. The Brampton plant was Giampaolo’s first foray into the aluminum industry. The greenfield project involved an initial investment of $75 million, made its first cast in December 2005, and had a rated annual capacity of 200 million lbs (currently producing +250 million lbs/yr). Matalco purchased Thakar’s aluminum plant in Canton in 2010, injecting nearly $20 million to bring it up to speed. Canton is a major supplier of forging stock, producing 130 million lbs/yr. Their system is ideal for handling large volumes of aluminum chips and turnings. And of course, our $100 million state-of-the-art Lordstown facility, which was commissioned in 2016. Volume is being ramped up, with a third shift added in early March. Their expected daily output at full capacity is ~1 million lbs.
North America is our main geographic market, typically focusing on areas within 500 miles of our plants. With the majority of our customers we have tolling arrangements and bring back their generated scrap for further processing. From a logistics perspective, it would not make economic sense to bring scrap back from locations outside the 500 mile range. However, Matalco has the benefit of having a rail spur on site in Lordstown, and we’re exploring the logistics of shipping material greater distances using rail.
Read the full interview here.