SMT (Sandvik Materials Technology) has acquired the remaining 30% of the US based joint venture Pennsylvania Extruded Tube Company (PEXCO). SMT has owned 70% of PEXCO, and Nippon Steel Extruded Tube, Inc (NSEXT) the remaining 30%. PEXCO’s line of business is focused on the production of extruded stainless steel and is part of SMT’s Tube division supply chain. It is fully supplied from SMT’s melt shop in Sandviken. The extrusion press is the only press in its size range on the US market and it has an installed annual capacity of approximately 9,500 metric tons.
Taking sole ownership of PEXCO will accelerate the portfolio shift in North America and strengthen SMT’s position, portfolio and ability to serve the local market, through a full alignment of the hot extrusion (PEXCO) and cold working units on the Scranton campus.
“This allows for future investments to fully support our strategic priorities, and I am very pleased that we continue to execute on our profitable growth strategy, at the same time as we are continuing to excel our operational excellence program,” says Göran Björkman, President of Sandvik Materials Technology.
“PEXCO has been a very successful partnership between Sandvik and Nippon Steel Corporation for almost 30 years. However, given the increased demand for higher alloyed materials, the acquisition of the remaining 30% will allow us to secure, improve and develop our ability to serve the US market,” says Michael Andersson, President of Tube division.
PEXCO has been a joint venture between SMT and NSEXT since 1993, and has approximately 86 employees with one single site in Clarks Summit, USA.