Source: Insteel Industries Inc., Mount Airy, N.C.
Insteel Wire Products Co. has acquired the assets of Strand-Tech Manufacturing Inc. Management plans to close the company’s Summerville, S.C., operation by the end of third quarter, then shift its prestressed concrete strand production equipment to existing Insteel fabrication shops in Florida, Tennessee and Texas.
“The acquisition represents a significant milestone for our PC strand business,” says Insteel Industries CEO H.O. Woltz III. “We believe the consolidation of facilities will strengthen our competitive position by leveraging operating costs and optimizing our manufacturing footprint. Our decision to close the Summerville facility reflects the harsh market conditions created by the surge in low-priced PC strand import competition following the imposition of the Section 232 tariff on hot-rolled steel wire rod, Insteel’s primary raw material. We are continuing to work with the Administration to address the unfavorable impact of the increased imports on U.S. manufacturers.”
Insteel expects to recover approximately $8 million of its $22.5 million investment through the sale of the Strand-Tech property and avoidance of future capital outlays resulting from equipment redeployment. Consolidation of production is expected to result in the elimination of up to 42 positions at Summerville, whose staff will be offered employment at other Insteel facilities, along with relocation and transition assistance.