Klein Steel Announces Grand Opening of the Industry’s Most Advanced Steel Service Center That Introduces a New Era of Steel Service Production

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Klein Steel Leads Industry Transformation with 40,000 Sq. Ft. Hub Facility In Rochester, NY That Leverages State-Of-The-Art Equipment and Digital Technologies

New Era Of Steel Service Production At Klein Steel

"Many talk about the new era of manufacturing. Today, we unveil the new era of steel service production." Todd Zyra, President and CEO

+ Klein Steel invests $8M to expand its NYS footprint and distribution to NY, PA, MA. VT & CT.
+ Klein Steel sets new industry benchmark with digital and intelligent operations devices for increased capacity, efficiency and reliability.
+ New facility and expansion will support new clients and increased demand from existing customers.
+ Through the next 5 years, Klein Steel’s expansion will create 50 new jobs that represent career opportunities to become highly skilled and certified Klein Steel technicians through the Klein Steel University, an in-house employer paid training program.
+ Klein Steel receives support from the Empire State Development valued at up to $750K and RGE valued at up to $100K.

Klein Steel Service (http://www.kleinsteel.com) today announced the grand opening of the industry’s most advanced steel service center that provides Klein Steel with increased capacity, productivity, efficiency, tracking and reliability. The new 40,000 sq. ft. facility is located adjacent to the Company’s headquarters in Rochester, New York. Klein Steel Services also announced an aggressive growth plan with the firm projecting to double in size within the next three years. In 2016 alone, Klein Steel Services will create twelve new jobs and promote ten percent of its existing team members. Moreover, it aims to expand in all of its geographic territories and invest in emerging markets.

“We’re excited by the progress we’ve made as the leading steel service center in the Northeast and by the news we are sharing today,” said Todd Zyra, President and CEO. “Today’s grand opening of our new hub facility represents a new era of steel service and signals a major opportunity for our customers, our team members and the communities which we serve. It is a direct result of our continuing investments, our commitment and our strong belief in our direction. Many talk about the new era of manufacturing. Today, we unveil the new era of steel service production.”

Zyra added, “What really sets us apart are the investments we have made into both technology and people. I firmly believe that the fundamental strength of Klein Steel is the commitment, dedication, talent and loyalty we receive from our team members, our customers and our partners, including Empire State Development, RGE, Monroe County, the City of Rochester and FICEP, an outstanding firm that manufactured hardware and software so we can now perform multiple production sequences automatically.

The steel industry this past year has been filled with bad news: a plunge in prices, a flood of low-priced imports and a collapse in investments that affect steel demand. Wolfgang Eder, Chairman of the World Steel Association, called the problem “enormous, serious and critical.” Klein Steel, however, outpaced the steel service industry by growing almost 10% in 2015, while the industry slipped by 7%. Klein Steel also expanded its Albany and Massachusetts markets, which increased by 40% in 2015.

Senator Charles Schumer said, “Klein Steel’s expansion will not only create 50 new jobs, it will enable this cutting-edge company to expand its products, secure more customers, and grow its business– all thanks to this new $8 million investment and state-of-the-art facility here in Rochester. Since it was first forged here in Rochester 45 years ago, Klein has been a company that plays by the rules and works each day to make their company as strong as the steel it produces. That’s why I’ve been proud to work on behalf of Klein to crack down on countries like China that thwart trade agreements and unfairly dump low-priced steel here –and why I joined Klein in the successful drive to ensure the Defense Department once again purchases their steel from U.S. companies. I commend Klein Steel for investing in Rochester and congratulate all their workers for their hard work to make this expansion possible.”

Congresswoman Louise Slaughter added, “Our manufacturing sector continues to strengthen Rochester’s position as a center of innovation. I congratulate Klein Steel on the opening of this new advanced steel service center that is helping create new jobs and grow our economy."

Empire State Development President, CEO & Commissioner Howard Zemsky said, “Klein Steel’s new state-of-the-art facility will feature the country’s most advanced steel processing equipment and will bring 50 jobs to Rochester. If you’re planning on doubling your company’s footprint, like Klein Steel, there’s no better investment you can make than expanding your New York State workforce.”

“NYSEG and RG&E have a decades-long history of supporting growing businesses through our robust economic development grant programs,” said Mark S. Lynch, president and CEO of NYSEG and RG&E. “Klein Steel, a homegrown success story having expanded from a three-garage warehouse to five locations across the state, is continuing to invest and the New York State economy is benefitting. In recognition of Klein Steel’s stellar growth, we have committed to an RG&E economic development grant of up to $100,000 to assist with electric infrastructure and energy efficiency improvements for the firm’s latest expansion. We congratulate Klein Steel on its track record and wish the firm continued success.”

Klein Steel’s Engineers and Operations experts partnered with the world’s leading manufacturers for the steel construction industry to configure an innovative, intelligent steel production system that performs multiple productions sequences automatically and that are managed and monitored through intelligent devices that assure maximum efficiency and quality. The result is a custom configured system that runs different operations - from shot blasting and sawing through tracking and loading - automatically with Klein Steel Certified technicians performing vital diagnostic and quality control tasks. Ficep S.p.A., located at the foot of the Alps on the northern border between Switzerland and Italy, was the lead partner with support from their US subsidiary located in Forest Hill, Maryland. In addition to Ficep, Klein Steel partnered locally with RGE, M&T Bank, Buckingham Properties to fast track the new facility.

About Klein Steel Service (http://www.kleinsteel.com)
Founded in 1971, Klein Steel Service Inc., a premier metals supplier and processing center, is the recognized industry leader in the Northeast and one of a few NQA-1 compliant metal service centers nationwide. With a 45-year track record for quality, innovation, performance and customer service, Klein Steel has grown to a 300,000 sq. ft. footprint that supports reliable delivery to customers in NY, PA, MA, VT and CT.

Klein Steel provides world-class JIT inventory and supply management solutions with over 3,500 line items of carbon, stainless steel, aluminum and specialty metals. Klein Steel also offers a full range of value-added processing services from high speed mill and drill to oxy and plasma, as well as component manufacturing and kitting for commercial applications as well as nuclear commercial-grade dedication materials.

Klein Steel is acknowledged as an industry leader having been named the 2015 winner of the Platt’s Global Metal Distributor of the Year award, a finalist in 2014, 2015 and 2016 for the Service Center of the Year award from American Metal Market (AMM), a finalist in 2016 for the Advocate of the Year award from AMM, a 2016 finalist for the Most Valuable Employer For Military by CivilianJobs, a 2015 winner of a Rochester Top Workplaces award, a 2015 Rochester Top 100 company, a 2012 recipient of the Rochester Business Ethics Award, and winner of the Industry Week Best Plants award in 2011.

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Harold Miltsch
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