Metals: Production, Processing & Distribution
Market & Customer Diligence:
A leading North American producer of engineered steel products for rail, energy and industrial end markets
Situation:
EVRAZ North America is a producer of high-quality engineered steel products for the North American rail, energy and industrial end user markets, employing 3,400 individuals across the U.S. and Canada with steelmaking capacity of 2.3 million tons and finished steel capacity, including tubular products, of 3.5 million tons.
The company's Pueblo, CO facility is the largest rail supplier in North America. Its Canadian operation is one of the largest energy tubulars suppliers in North America. The business operates two electric arc furnace steel facilities, 12 steel product mills and 17 scrap recycling facilities.
Ameridan’s Role:
As part of its due-diligence efforts, Ameridan was asked to assess the markets for steel rail and large-diameter steel pipes as well as obtain direct customer feedback regarding perceptions of the Company relative to the competition, recent Company performance, the near-term business outlook, and other issues.
To facilitate this effort, Ameridan conducted in-depth interviews with knowledgeable participants in the pipe and rail markets and solicited their opinions on numerous issues such as industry trends, competitive dynamics, key buying factors, barriers to entry, and other issues.
The secondary research effort gathered and synthesized information from a wide variety of sources including proprietary industry reports, public disclosures (of competitors, market channels), various governmental data providers (e.g., US Commerce Department, Statistics Canada, etc.), publicly available industry reports, and other secondary data sources.
Ameridan also conducted interviews with key customers including Class I railroads, short lines, rail fabricators, energy infrastructure companies, and distributors.